RH (RH) is at risk that significantly higher tariffs may disrupt "top- and bottom-line" growth in the coming quarters, Oppenheimer said in a report emailed Monday.

The company posted "weaker than planned," fiscal Q2 earnings and revenue, with adjusted EPS of $2.93 missing forecasts and revenue up 8.4% at the low end of guidance, prompting the company to cut its full-year outlook.

Management indicated that demand is stabilizing, but that higher tariffs, particularly a 50% rate on goods from India, which represents nearly 7% of RH's sales, are a major headwind. Management also noted that inflation is likely to accelerate in the second half of the year and into 2026, according to the report.

Oppenheimer cut its fiscal 2025 earnings estimate to $8.48 per share versus $10.39 previously and below the $9.03 consensus, and reduced its fiscal 2026 estimate to $12, from $13.15.

Oppenheimer has a perform rating on RH.

Shares of the company were 1.6% higher in recent trading

Price: 223.87, Change: +6.25, Percent Change: +2.87