Core Viewpoint - RH reported mixed results for the third quarter, with earnings per share falling short of analyst expectations while revenue slightly exceeded estimates [1][2]. Financial Performance - Quarterly earnings were $1.71 per share, missing the analyst estimate of $2.16 by 20.87% [1]. - Quarterly revenue was $883.81 million, surpassing the Street estimate of $883.69 million [1]. Growth and Market Conditions - Revenue increased by 9% in the third quarter and 18% on a two-year basis, indicating strong growth despite challenging market conditions [2]. - The CEO highlighted the brand's disruptive nature amid the worst housing market in nearly 50 years and the impact of tariffs [2]. Future Outlook - For the fourth quarter, RH projects revenue between $869.27 million and $877.4 million, lower than the analyst estimate of $896.97 million [2]. Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for RH stock, with B of A Securities lowering it from $200 to $170 and Telsey Advisory Group from $220 to $185 [3][4].
RH Analysts Slash Their Forecasts Following Q3 Earnings