The stock of Restoration Hardware (RH) is down 10% after the furniture retailer lowered its guidance and warned of ongoing impacts to its business from tariffs.
The company commonly known as RH announced earnings per share (EPS) of $2.93 U.S. for this year’s second quarter. That was below the $3.21 U.S. expected on Wall Street.
Revenue of $899 million U.S. fell short of the $905 million U.S. consensus expectation of analysts who track the company’s progress.
Management also cut their full-year guidance, citing higher tariff-related costs and the risk of ongoing inflation.
RH executives said they expect a $30 million U.S. hit from tariffs in this year’s second half, pressuring margins as a result.
Much of the furniture RH sells in the U.S. is manufactured in China and Vietnam and subject to steep import duties.
Consequently, RH now sees revenue growth of 9% to 11% for all of 2025, down from previous guidance of 10% to 13% growth.
The company also expects an operating margin of 13% to 14%, down from an earlier call of 14% to 15%.
Management at RH also noted that their business is being impacted by what’s being called the worst housing market in 50 years as elevated interest rates hurt sales and renovation projects.
Prior to today (Sept. 12), RH stock had declined 42% this year to trade at $228.12 U.S. per share.
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