RH Shares Plummet Following Q2 Results Miss and Lowered Full-Year Forecast

RH shares have declined 13% after the company reported Q2 results that missed expectations and cut its full-year forecast. The luxury home furnishings retailer's Q2 revenue was $675.4 million, below the estimated $695.4 million. RH also cut its full-year forecast, citing a decline in consumer demand.

Luxury home furnishings retailer RH (NYSE: RH) saw its shares fall by 13% after reporting its second-quarter earnings, which missed analyst expectations. The company's Q2 revenue of $899.2 million fell short of the estimated $906.58 million, while adjusted earnings per share of $2.93 also missed the expected $3.18 RH shares tumble 10% on worse-than-expected Q2 print^[3].

RH's Chairman and CEO, Gary Friedman, acknowledged the company's continued growth in revenue and demand, noting that the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years had affected the results. The company reported an 8.4% year-over-year (YoY) increase in revenue and a 13.7% increase in demand during the quarter RH shares tumble 10% on worse-than-expected Q2 print^[3].

Despite the revenue growth, RH's shares tumbled 10% in trading following the announcement. The company also revised its fiscal 2025 guidance due to tariff uncertainties, projecting revenue growth of 9% to 11% with adjusted operating margins between 13.0% and 14.0% RH shares tumble 10% on worse-than-expected Q2 print^[3].

The company cited a decline in consumer demand as the primary reason for cutting its full-year forecast. RH noted that it has shifted sourcing away from China, expecting receipts to decrease from 16% in Q1 to 2% in Q4, and is also responding to recent 50% tariffs imposed on India, impacting 7% of its business RH shares tumble 10% on worse-than-expected Q2 print^[3].

RH's shares have been in the red after the bell on Thursday, with a significant decline in investor sentiment. The luxury home furnishings retailer's peers in the home furniture retailer segment have shown positive sentiment, with share prices up 8.1% on average over the last month. RH is up 8.9% during the same time and is heading into earnings with an average analyst price target of $262.25 RH (RH) To Report Earnings Tomorrow: Here Is What To Expect^[1].

Investors should closely monitor RH's third-quarter results and any updates regarding its full-year forecast. The company's ability to navigate tariff uncertainties and maintain growth in consumer demand will be critical factors in determining its future performance.