RH Stock Drops 25% Following Weak Fiscal 2026 Outlook

The luxury home furnishings retailer cites the worst housing market in 50 years and rising costs as major challenges in its earnings report.

RH reported a 5% revenue increase for fiscal year 2025, reaching $3.18 billion, but profitability declined due to higher costs and interest expenses.
Fourth-quarter revenue rose 10% year-over-year to $812.4 million but fell short of analyst expectations.
The company projected fiscal 2026 revenue growth of 10% to 13%, below analyst estimates, citing ongoing housing market struggles and tariff uncertainties.
Gross margin decreased to 44.5% from 45.9% the previous year, while operating income dropped to $322.6 million from $366.1 million.
Following the earnings report and guidance, RH's stock plummeted nearly 25% in after-hours trading, reflecting investor concerns over its outlook.