RH's stock experienced a sharp decline of 17.39% in extended trading, following the release of its fourth-quarter and fiscal year 2025 financial results.

The luxury home furnishings retailer reported adjusted earnings per share of $1.53 for the quarter, significantly missing analyst estimates which ranged from $2.20 to $2.22. Quarterly revenue of approximately $843 million also fell short of the consensus expectation of about $873 million. The company cited specific headwinds, including a roughly $30 million revenue impact from higher-than-expected backorder balances due to tariff-related resourcing issues and an additional $10 million hit from adverse weather at the end of the quarter.

Investor sentiment was further dampened by the company's cautious outlook. RH projected first-quarter 2026 revenue growth in the range of -2% to -4%, indicating a potential contraction. The full-year 2026 revenue growth guidance was set at 4% to 8%, which was below market expectations. The disappointing results and weak forward guidance prompted at least one analyst firm, Jefferies, to cut its price target on the stock.