RH Shares Fall After Revenue Miss and Reduced Outlook,Cites Tariff Concerns
Shares of RH (NYSE: โคRH) experienced a slight decline Fridayโข following the luxury furniture retailer’s release of its fiscal โsecond-quarter earnings report. The report revealed a miss on revenue expectations and a lowered full-year revenue outlook.
RH reported revenue of $899 million, falling short โof the $905 million โคanticipated by Wall Street analysts. The company also revised its full-year revenue guidance down to an increase of 9% to 11%, compared to a previous projection of 10% to 13%.Adjusted earnings before interest, taxes, depreciation, and amortization โ(EBITDA) margins are now expected to be between 19% and 20%, down from prior estimates of 20% to 21%.
Contributing toโค the revised outlook is an anticipated $30 million impact from tariffs, despite the company maintaining โits initial full-year projection just three months prior in its fiscal first-quarter report. The launch of RH’s Fall Interiorsโข Sourcebook has been โคdelayed by approximately two months as the company finalizes pricing in response to ongoing tariff announcements. According to CEO Gary Friedman, roughly $40 โคmillion in revenue is now expected to shift โfromโ the third quarter into the fourth quarterโฃ and first quarter of 2026.
The company is alsoโ navigating uncertainty surrounding potential new tariffs on imported furniture โproposed by president Donald Trump. In late august, trump announced a 50-day examination to determine tariff โrates on imported furniture,โข aiming to revitalize domestic furniture manufacturing.
Friedman expressed skepticism about the feasibility of fully reshoringโค furniture production, stating, “We believe mostโ in โฃour industry hope that thisโ investigation surfaces the difficulty ofโ that task, as current manufacturing for high quality wood or metal furniture does not exist at scale โin America.”
RH is activelyโ working โคto shift operations away โfrom China and seeking alternative manufacturing locations to India.The fiscal second-quarter report โdid not include specific estimates regarding the potential financial impact of Trump’s proposed furniture tariffs. Though, Friedman affirmed the company’s ability to remain competitive “in any market condition.”
Date: september 12, 2025 (as indicated inโ the โoriginal source)