Shares of RH (RH) are down nearly 10% after the high-end furniture retailer lowered its outlook
for its 2022 revenue as consumer demand for its products continues to weaken coming out of
the pandemic.
In releasing its latest earnings, RH said it now sees annual sales down between 2% and 5%,
compared with prior forecasts of flat sales to up 2%. The company said it anticipates revenue in
its fiscal second quarter to be down between 1% and 3% from year ago levels.
RH said that the next several quarters present a challenge for the company as it laps a period of
heightened demand that occurred during the pandemic. The company warned earlier in June
that it was seeing softening demand for its furniture and household products.
RH reported that its revenue in the three-month period ended April 30 totaled $957 million U.S.,
up from $861 million U.S. a year ago. The company also said that it has not repurchased any of
its own shares since announcing in early June that it will expand its current stock buyback
program.
RH’s stock has fallen 56% this year to trade at $237.32 U.S. a share. The company has
announced plans to split its stock on a 3-for-1 basis this year.