RH Stock Plummets on Tariff Woes and Lowered Guidance

RH shares tumbled after the luxury furniture retailer slashed its full-year outlook, citing tariff pressures and a challenging macroeconomic environment. The stock has plunged over 40% year-to-date as the sector grapples with post-pandemic demand normalization and housing market stagnation.

Second-quarter earnings revealed mixed results: revenue grew 8% to $899.2 million while demand jumped 14%, but the company missed analyst estimates. Adjusted EPS of $2.93 represented 73% growth yet fell short of the $3.21 consensus. European expansion shows promise, with RH England's gallery demand surging 76% and online sales up 34%.

The TRUMP administration's proposed additional furniture tariffs compound existing headwinds from COVID-era demand pull-forward and suppressed housing turnover. Gross margins held firm with a 30 basis point improvement, offering a rare bright spot in an otherwise gloomy report.