RH Q4 Revenue Miss Leads to Share Drop

RH reported a fourth-quarter revenue of $812.4 million, falling short of Wall Street expectations and its guidance of $829.6 million. The company's earnings per share were $1.58, missing the analyst forecast of $1.92. As a result, RH's stock dropped by 14% in after-hours trading. The company attributed its lower-than-expected performance to a challenging macroeconomic environment, including higher tariffs, inflation, and seesawing markets. Despite these setbacks, RH forecasts a full-year revenue growth of 10% to 13% and is working with manufacturing partners to mitigate tariff impacts. The company's long-term strategy focuses on repositioning the brand, despite facing a higher-risk business environment this year.