RH Q4 Misses Estimates, Shares Plunge 19% on Revenue Shortfall and $326M Capex Plan
RH is trading near its 52-week low of $106.304 (6.6% above the low) on elevated volume (2.1× avg).
Summary
RH reported fourth-quarter revenue of $842.6 million, which, despite being up 3.7% year-over-year, materially missed analyst estimates by 3.6%, with EBITDA also falling short. This significant earnings miss triggered an immediate and sharp market reaction, sending shares down approximately 19%. The company also outlined a substantial capital expenditure plan of $326 million for 2025, including brand acquisitions, which CEO Gary Friedman expects to transition from costs to revenue drivers by late 2026. This news follows recent negative first-quarter revenue guidance, projecting a 2-4% decline, which was previously disclosed in an 8-K filing on March 31st. The combination of a Q4 miss, negative guidance, and significant investment plans creates near-term uncertainty for the stock. Traders will be watching for further details on the capex deployment and any revisions to future guidance.
At the time of this announcement, RH was trading at $113.30 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $106.30 to $257.00. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.