RH (NYSE: RH), the luxury home furnishings retailer, saw its shares plunge 8.83% in after-hours trading following the release of its second-quarter fiscal 2025 earnings report. The company's results fell short of analyst expectations, and management lowered its full-year revenue growth guidance, sparking investor concerns.

For the second quarter ended August 2, 2025, RH reported adjusted earnings per share of $2.93, missing the analyst consensus estimate of $3.20 by 8.49%. While this represents a 73.37% increase from the same period last year, it wasn't enough to meet market expectations. Revenue for the quarter came in at $899.151 million, slightly below the analyst estimate of $904.643 million, marking an 8.38% increase year-over-year.

Adding to investor worries, RH lowered its fiscal 2025 revenue growth guidance to a range of 9% to 11%, down from the previous projection of 10% to 13%. The company also noted that approximately $40 million in revenues would shift out of Q3 and into Q4 and Q1 2026. Furthermore, RH's updated outlook reflects a $30 million cost of incremental tariffs, net of mitigation, in the second half of the year. These factors combined to create a perfect storm for the stock's after-hours decline, as investors reassessed their expectations for the company's near-term performance.