Core Insights - RH's shares declined after the company reported a significant revenue miss in its second-quarter earnings and reduced its full-year revenue outlook [1][2] - The company is facing an additional $30 million impact on its forecast due to tariffs, despite having maintained its full-year forecast just three months prior [1][2] Revenue Outlook - RH now anticipates full-year revenues to increase by 9% to 11%, down from a previous estimate of 10% to 13% [2] - Adjusted EBITDA margins are now expected to be between 19% to 20%, reduced from earlier estimates of 20% to 21% [2] Financial Performance - The reported revenue for the second quarter was $899 million, which fell short of Wall Street's expectations of $905 million [2] - The introduction of the Fall Interiors Sourcebook has been delayed by approximately two months as the company awaits final pricing based on tariff announcements [2] Revenue Shift - The CEO indicated that approximately $40 million in revenues is expected to shift from Q3 to Q4 and Q1 2026 [3]
RH reports worse-than-expected tariff hit, earnings miss