Why RH Stock Is Down Today
RH (NYSE: RH), the company behind furniture retailer Restoration Hardware, delivered in the second quarter. But the company warned higher mortgage rates and other macroeconomic pressures are likely to weigh on the luxury housing market in the quarters to come. Investors are taking the warning seriously, sending shares of RH down as much as 12% in Friday trading.
RH has long sought out a luxury niche in the furniture market, and the company continues to see significant demand for its offerings despite economic concerns. RH earned $3.93 per share in the second quarter on revenue of $800 million, topping analyst expectations for $2.56 per share in earnings on sales of $784.9 million.
Revenue was down from $992 million in the same three months a year prior, and operating margin in the quarter fell to 18.9% compared to 23.6% in the second quarter of 2022. But investors had expected some pressure on the business.
Source Fool.com
