Company Performance - RH reported quarterly earnings of $2.93 per share, missing the analyst estimate of $3.20 [1] - Quarterly revenue was $899.15 million, falling short of the Street estimate of $904.64 million [1] - Revenue increased by 8.4% year-over-year, with demand rising by 13.7% despite challenging market conditions [2] Market Conditions - The company is facing tariff uncertainties and the worst housing market in nearly 50 years [2] - Strong brands like RH are expected to benefit from potential industry dislocation due to tariffs, while smaller companies may struggle [3] Future Outlook - RH has 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, compared to the previous estimate of $3.52 billion [4] - The company is hopeful that the investigation into potential tariffs will consider a broad perspective from industry leaders [4] Stock Performance - Following the earnings report, RH stock dropped by 12.8%, trading at $198.91 in extended trading [5]
RH Stock Plunges After Q2 Earnings Disappoint: Here's What To Know