By Connor Hart
Shares of RH fell after the company posted lower-than-expected sales in the latest quarter and issued an underwhelming outlook for the coming year.
The stock fell 23%, to $107.85, in premarket trading Wednesday. Through Tuesday's close, shares have lost nearly 28% of their value so far this year.
The home-furnishings company late Tuesday reported adjusted earnings of $1.53 a share on revenues of $842.6 million for its quarter ended Jan. 31, missing analyst views for adjusted earnings of $2.20 a share on revenues of $873.2 million, according to FactSet.
Looking ahead, RH guided for revenue to fall between 2% and 4% in the current quarter.
KeyBanc Capital Markets analysts said they are hopeful the weak outlook marks a low point, and that trend will improve throughout the year. RH guided for full-year revenue growth of between 4% and 8%.
The analysts said RH stands to benefit from the launch in May of RH Estates, a new line targeting luxury, in which the company is currently under indexed. They warned, though, that risks remain as geopolitical events that hurt consumer confidence could continue to dampen sales.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
April 01, 2026 09:18 ET (13:18 GMT)
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