Why RH Shares Are Headed Lower After Hours

RH (NYSE: RH) reported worse-than-expected financial results after the bell. The stock is trading down on the heels of the report.

Although quarterly results were below the company’s pandemic peak, management highlighted adjusted operating margins of 22% and adjusted EBITDA margins of 25.9%, representing the most profitable business model in company history.

“It’s clear that the stay-at-home restrictions of the pandemic created an exponential lift for home-related businesses, and it’s also clear the lift, like the pandemic, was a temporal isolated event versus something structural or systemic,” the company said in a letter to shareholders.

What’s Next: RH said it plans to unveil its most prolific collection of new products ever this Spring and Summer. The company also plans to address new markets locally, transform its North American Galleries and expand the RH brand globally.

View more earnings on RH

RH sees first-quarter revenue of $720 million to $735 million and adjusted operating margins between 13% and 14%. The company expects 2023 revenue of $2.9 billion to $3.1 billion versus estimates of $3.6 billion.

See Also: Here’s A Look At Recent Price Target Changes By The Most Accurate RH Analysts

RH Price Action: RH shares were down 5.71% after hours at $231.72 at the time of publication, according to Benzinga Pro.

Photo: Arek Socha from Pixabay.

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