RH ( RH ) shares plunged in extended trading Wednesday after the company issued a weaker-than-expected outlook and said it's facing “the worst housing market in 50 years.”
The luxury home furnishings retailer said it expects revenue to grow 10% to 13% year-over-year in fiscal 2026, below the analyst consensus compiled by Visible Alpha. Its first-quarter growth projection of 12.5% to 13.5% also missed estimates.
RH shares lost nearly a quarter of their value in after-hours trading. As of Wednesday’s close, the stock was down about 37% for 2025.
"We expect a higher risk business environment this year due to the uncertainty caused by tariffs,” RH said in a statement. The company reported results as President Trump announced sweeping tariffs on goods from a wide range of countries Wednesday evening.
“The fact is, we’ve been operating in the worst housing market in almost 50 years,” the company added.
In its fiscal fourth quarter, RH reported revenue of $812.4 million, up 10% year-over-year but below the analyst consensus. Adjusted net income of $31.7 million, or $1.58 per share, was up from $14.3 million, or 72 cents per share, a year earlier, but also missed expectations.
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