RH (NYSE:RH) shares dropped after the company released its second-quarter results after Thursday's closing bell. Here's a look at the details in the report.
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The Details: RH reported quarterly earnings of $2.93 per share which missed the analyst estimate of $3.20.
Quarterly revenue came in at $899.15 million which missed the Street estimate of $904.64 million.
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“RH continued to generate industry leading growth in the second quarter as revenue increased 8.4%, and demand increased 13.7% despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years,” CEO Gary Friedman wrote in a letter to shareholders.
Friedman also addressed the potential for future furniture tariffs.
“While strong brands like ours will benefit from the likely dislocation and consolidation more tariffs will have on our industry, many smaller companies will have difficulty surviving these levels of tariffs. Additionally, more tariffs on furniture could also result in U.S. manufacturers moving production from the U.S. to countries closer to their international clients, avoiding freight costs and the likelihood of counter tariffs,” Friedman wrote.
“Our hope is that the investigation will seek out the perspective of a cross section of leaders in our industry as we drive toward the best outcome for our country,” he added, referring to the Trump administration's investigation of potential tariffs.
Outlook: RH lowered its fiscal 2025 revenue outlook from a range of $3.49 billion to $3.59 billion to a new range of $3.46 billion to $3.53 billion, versus the $3.52 billion estimate.
RH Stock Price: According to data from Benzinga Pro, RH stock was down 12.8% at $198.91 in Thursday's extended trading.
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