RH's stock experienced a sharp pre-market plunge of 17.34% on Wednesday.

The luxury home furnishings retailer reported disappointing fourth-quarter results, with adjusted earnings per share of $1.53 significantly missing analyst estimates of approximately $2.22. Quarterly revenue of about $843 million also fell short of the expected $873 million. The company cited specific headwinds, including a roughly $30 million revenue impact from higher-than-expected backorder balances due to tariff-related resourcing issues and an additional $10 million hit from adverse weather at the end of the quarter.

Investor sentiment was further pressured by the company's cautious outlook. RH projected first-quarter 2026 revenue growth in the range of -2% to -4%, indicating a potential contraction. The full-year 2026 revenue growth guidance was set at 4% to 8%, which was below market expectations. The disappointing results and weak forward guidance prompted analyst firm Jefferies to cut its price target on the stock.