As President Trump announces the latest round of trade tariffs on the so-called “Liberation Day” of the U.S. economy, some traders may be surprised to see longtime favorites fall from grace. Yet this reaction aligns with a market gripped by extreme uncertainty.
The stock market is taking a hit today. Most sectors are in the red.
RH (NYSE:RH), formerly Restoration Hardware, shares plummeted more than 40% as the luxury homewares brand's quarterly earnings disappointed, exacerbated by concerns about how Donald Trump's new “reciprocal” tariffs will impact the brand. For the fourth quarter, RH's earnings per share of $1.58 were short of the $1.91 expected.
RH's fourth-quarter fiscal 2024 results indicate strong demand despite a challenging housing market.
RH (RH) shares plunged in extended trading Wednesday after the company issued a weaker-than-expected outlook and said it's facing “the worst housing market in almost 50 years.”
RH CEO Gary Friedman used an expletive to react as he saw the company's stock drop. Shares appeared hurt by poor earnings and President Donald Trump's tariff announcement.
RH says it has been ‘operating in the worst housing market in almost 50 years.'
Restoration Hardware's stock plunged 26% after a major tariff announcement. The company's CEO cursed when he found out the luxury home furnishing company's stock fell.
RH (NYSE:RH ) Q4 2024 Earnings Conference Call April 2, 2025 5:00 PM ET Company Participants Allison Malkin - IR, ICR Gary Friedman - Chairman & CEO Jack Preston - CFO Conference Call Participants Steven Forbes - Guggenheim Michael Lasser - UBS Max Rakhlenko - TD Cowen Andrew Carter - Stifel Bradley Thomas - KeyBanc Capital Markets Jonathan Matuszewski - Jefferies Seth Basham - Wedbush Securities Brian Nagel - Oppenheimer Cristina Fernandez - Telsey Advisory Group Operator Good day, everyone, and welcome to the RH Fourth Quarter and Fiscal Year 2024 Earnings Call. I would now like to turn the call over to Ms.
While the top- and bottom-line numbers for RH (RH) give a sense of how the business performed in the quarter ended January 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
RH shares have declined 20% over the past year, with a 40% drop from their highs, driven by weak consumer spending and a sluggish housing market. Poor Q4 results, high debt levels, and significant leverage have exacerbated financial pressures, leading to my bearish outlook despite expansion efforts. RH's guidance implies weaker margins and potential downside risk due to excess inventory, tariff pressures, and a challenging housing market.
RH (RH) came out with quarterly earnings of $1.58 per share, missing the Zacks Consensus Estimate of $1.91 per share. This compares to earnings of $0.72 per share a year ago.