RH, also known as Restoration Hardware, reported a disappointing Q3 earnings, leading to a 4-10% drop in stock price after hours. The company's adjusted EPS estimates for CY 2023/FY 2024 have significantly decreased, and its 2024 forecast for operating margin has been revised downward. This comes after the company's stock had previously been goosed to $400 but has now dived back down to $255. RH also mentioned that it sees the housing market as 'frozen' and has delayed its catalog. The company expects demand trends to accelerate in the first half of 2024 despite the disappointing 3Q results.
No, not the catalog! Earnings Results: RH sees housing market ‘frozen,’ delays catalog as it swings to surprise quarterly loss $RH https://t.co/G7RN618sOT
$RH down 10% AH after company cut 2024 forecast for operating margin to 13.6-14% from 14.5%-15.5%
$RH Adjusted EPS estimates for CY 2023/FY 2024 peaked out at a little over $28 in early 2022. CY 2024 estimates got as high as $33, and are now down to $13.90 -- and probably headed lower. What a wild ride. https://t.co/UID64cl3EW
Remember those massive $RH summer buybacks at an avg. $326, using debt, to goose the stock to $400? Today brings another quarterly earnings release and another after-hours stock dive back down to $255. https://t.co/eMya4MW7Fb
i'm stunned $RH is only down 8% on this print.
By no means the $RH quarter I was expecting. But surprisingly little change to the 4Q/FY guide in light of a disappointing 3Q. More to come as we parse through the numbers...
$RH RH: "We expect our demand trends to accelerate though the first half of 2024..." Earnings miss, stock -5.25% AH https://t.co/zL0XMzedfQ
$RH posts numbers of some sort which tells us a lot about... whatever business RH is actually in now (beyond the creation of vanity properties w/ a minor furniture side hustle)
$RH RH Q3 -4% AH https://t.co/zs9SXvBMM3