RH's stock experienced a significant plunge of 16.71% in after-hours trading on Tuesday, following the release of its financial results.
The luxury home furnishings retailer reported fourth-quarter adjusted earnings per share of $1.53, missing analyst estimates of $2.22. Revenue of $842.6 million also fell short of the expected $873.2 million. The company cited specific headwinds, including approximately $30 million in 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.
Adding to investor concerns, RH provided a cautious first-quarter 2026 outlook, projecting revenue growth in the range of -2% to -4%, indicating a potential contraction. The company's full-year 2026 revenue growth guidance of 4% to 8% was also viewed as disappointing by the market, contributing to the sharp sell-off.