RH Stock Drops On Q3 Performance: Here's Why
RH (NYSE: RH) shares are trading lower after the company reported worse-than-expected third-quarter financial results. Here's a look at some of the metrics driving the move.
What To Know: RH reported quarterly adjusted losses of 42 cents per share, well below the analyst consensus estimate of 97 cents, compared to earnings of $5.67 per share from the same period last year.
Quarterly sales of $751.23 million missed the Street's estimate of $756.74 million, a 13.56% decrease over sales of $869.07 million in the same period last year.
Also, the company posted an adjusted gross margin of 45.3%, compared to 49.7% last year.
RH expects full-year 2023 revenue to be between $3.06 billion and $3.08 billion versus the $3.08 billion estimate. Adjusted operating margin is expected to be between 13.6% and 14%.
In a letter to the shareholders, Chairman and CEO, Gary Friedman, weighed in on the financial results, saying, "Net revenues of $751 million were at the mid-point of our guidance for the quarter, and adjusted operating margin of 7.3% was slightly below expectations due to higher than anticipated expenses, including international openings as well as costs related to our pending acquisition of the New York Guesthouse property and unsuccessful efforts to secure the iconic One Ocean Drive Miami Beach location."
Related Link: Broadcom's Q4 Performance: Mixed Earnings, Dividend Hike, FY24 Guidance Exceeds Estimates
RH Price Action: Shares of RH were down 7.96% at $259.20 in the after-hours session at the time of publication, according to Benzinga Pro.
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This article RH Stock Drops On Q3 Performance: Here's Why originally appeared on Benzinga.com
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