RH's stock experienced a significant after-hours plunge of 16.49% following the release of its fourth-quarter and fiscal year 2025 results.
The luxury home furnishings retailer reported adjusted earnings per share of $1.53 for the quarter, missing the FactSet consensus estimate of $2.20. Revenue came in at $842.6 million, also falling short of the $873.2 million analysts expected. The company noted that revenue was impacted by approximately $30 million due to higher-than-expected backorder and special order balances stemming from tariff-related resourcing issues.
Adding to investor concerns, RH provided a first-quarter 2026 outlook projecting 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%. The disappointing results and cautious outlook led TD Cowen to cut its price target on the stock from $265 to $200.