RH Stock Tumbles as Tariff Costs Force Revenue Outlook Cut

RH shares plunged over 7% in premarket trading after the luxury home furnishings retailer slashed its annual revenue forecast, citing mounting pressure from tariff-related expenses. The company now anticipates 9%-11% revenue growth for the fiscal year, down from its previous 10%-13% projection. Year-to-date declines now exceed 42%.

While reporting an 8.4% revenue increase to $899.2 million and improved profitability, RH fell short of analyst expectations. CEO Gary Friedman warned of deteriorating market conditions, describing the current housing environment as the worst in five decades. The revised guidance incorporates $30 million in unmitigated tariff impacts for the second half.

The market reaction highlights growing investor sensitivity to macroeconomic headwinds. RH's challenges mirror broader retail sector concerns about persistent inflation and supply chain disruptions. The company's premium positioning makes it particularly vulnerable to discretionary spending pullbacks amid economic uncertainty.