RH shares fell 6% in a non-business session on Wednesday. After a retailer, formerly known as Restoration Hardware, cut off this year’s outlook, saying demand slowed due to a “deteriorating” economy.
The company said it expects sales in 2022 to decline by 2% to 5%. June furniture and household goods retailers sought a 2% increase in earnings from flat, which was a decline in expectations in itself, but saw “softening demand” amid economic uncertainty , Has already expressed concern.
RH has not changed its guidance that second-quarter earnings will decline by 1% to 3%.
“Demand has been lower than expected since the last forecast due to the deterioration of the macroeconomic environment, especially in the second half of the year,” Gary Friedman, CEO, said in a statement.
Demand will continue to slow throughout the year, thanks to rising mortgage rates, lower home sales and rising interest rates, according to Friedman.
The next few quarters will be a “short-term challenge,” the CEO said. RH will report its second quarter results in early September.
While the S & P 500 index lost about 18%, RH’s share fell nearly 39% this year.
RH shares fall after retailers lowered their outlook this year
Source link RH shares fall after retailers lowered their outlook this year