RH Stock Sinks Amid Tariff Woes and Housing Market Slump

RH shares plummeted 7% in premarket trading after the luxury furniture retailer missed earnings and revenue estimates, citing tariff pressures and the weakest housing market in decades. Second-quarter adjusted earnings of $2.93 per share and $899.2 million in revenue fell short of analyst expectations, prompting a downward revision of full-year guidance.

The company attributed its struggles to the "polarizing impact of tariff uncertainty" and a dismal housing sector. Bright spots emerged overseas, with RH Gallery locations in England reporting a 76% surge in demand. Online sales climbed 34%, offering a glimmer of resilience.

RH is aggressively shifting production out of China and India to mitigate 50% duties on imports. The firm has ramped up operations at its North Carolina facility while bracing for significant inflationary pressures through 2025.