Overview

• Adjusted EPS came in at $2.93 on revenue of $899.2 million, missing consensus estimates of $3.22 and about $904.6 million as sales rose 8% year over year.
• RH lowered its outlook to an adjusted EBITDA margin of 19% to 20% and revenue growth of 9% to 11%, and it narrowed fiscal revenue guidance to $3.46 billion to $3.53 billion.
• Management cited tariff uncertainty and what it called the worst U.S. housing market in almost 50 years as key drags on performance.
• The company is shifting sourcing away from China, addressing new 50% duties on imports from India that account for roughly 7% of its business, and expanding operations at its North Carolina plant.
• Shares fell about 7% in premarket trading and are down roughly 42% year to date, while analysts moved targets and ratings after the results, including a Telsey downgrade and a lower Barclays target as Guggenheim maintained Buy.