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Analysts Trim RH Price Targets After EPS Miss and Soft Q4 Guidance

Management cited tariff expenses along with international expansion costs as drivers of weaker margins.

Overview

  • RH posted third-quarter EPS of $1.71 versus a $2.16 estimate, while revenue rose 9% to $883.81 million and slightly topped expectations.
  • The company projected fourth-quarter revenue of $869.27 million to $877.4 million, below the $896.97 million consensus.
  • Management pointed to higher tariff costs and expenses tied to the Paris opening as factors that compressed operating and adjusted margins.
  • Shares jumped about 9.6% in after-hours trading to $168 before closing the prior session down 2.5% at $153.31, with premarket trading later showing a modest rebound.
  • BofA’s Curtis Nagle cut his price target to $170 with an Underperform rating, and Telsey’s Cristina Fernandez lowered her target to $185 with a Market Perform rating.