RH Stock Plunges 12% on Disappointing Guidance

RH (NYSE:RH) shares dropped more than 12% intra-day today after the company reported its second-quarter results.

The earnings per share (EPS) came in at $3.93, surpassing the Street estimate by $1.37. Additionally, the revenue for the quarter amounted to $800 million, exceeding the Street estimate of $777.8 million.

While quarterly results beat the expectations, guidance came in at worse than the consensus estimates. Looking ahead, RH anticipates third-quarter 2024 revenue in the range of $740 million to $760 million, which falls short of the Street estimate of $772.87 million. For the fourth quarter of 2024, the company expects revenues ranging from $760 million to $800 million.

Furthermore, RH has revised its full-year 2024 revenue guidance to be between $3.04 billion and $3.1 billion, compared to the Street estimate of $3.07 billion.