RH Shares Fall After Revenue Miss and Reduced Outlook,Cites Tariff Concerns
Shares of RH (NYSE: RH) experienced a slight decline Friday following the luxury furniture retailer’s release of its fiscal second-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 of the $905 million anticipated 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 (EBITDA) margins are now expected to be between 19% and 20%, down from prior estimates of 20% to 21%.
Contributing to the revised outlook is an anticipated $30 million impact from tariffs, despite the company maintaining its initial full-year projection just three months prior in its fiscal first-quarter report. The launch of RH’s Fall Interiors Sourcebook has been delayed by approximately two months as the company finalizes pricing in response to ongoing tariff announcements. According to CEO Gary Friedman, roughly $40 million in revenue is now expected to shift from the third quarter into the fourth quarter and first quarter of 2026.
The company is also navigating uncertainty surrounding potential new tariffs on imported furniture proposed by president Donald Trump. In late august, trump announced a 50-day examination to determine tariff rates on imported furniture, aiming to revitalize domestic furniture manufacturing.
Friedman expressed skepticism about the feasibility of fully reshoring furniture production, stating, “We believe most in our industry hope that this investigation surfaces the difficulty of that task, as current manufacturing for high quality wood or metal furniture does not exist at scale in America.”
RH is actively working to shift operations away from China and seeking alternative manufacturing locations to India.The fiscal second-quarter report did 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 in the original source)