Shares of luxury furniture retailer RH dropped 7.8% to $340 in post-market trading on Thursday, following the company's announcement of lower-than-expected revenue guidance for the third quarter. RH acknowledges the ongoing challenges in the luxury housing market, with mortgage rates currently at a 20-year high. The company anticipates these rates to remain unchanged until the second quarter of next year.
While analysts polled by FactSet had forecasted third-quarter revenue of $778.6 million, RH expects a drop to a range of $740 million to $760 million, compared to $869.1 million in the previous year. Similarly, for the fourth quarter, the company forecasts revenue between $760 million and $800 million, while analysts anticipated revenue of $774.8 million.
Despite this news, RH has raised the lower end of its revenue outlook for the fiscal year ending in January 2024 to a range of $3.04 billion to $3.1 billion.
It remains to be seen how RH will navigate the current market challenges, but the company is determined to adapt and overcome these obstacles.
