Why Are Home Furnishing Company RH Shares Slumping Today?
Portfolio Pulse from Shivani Kumaresan
RH (NYSE:RH) shares are trading lower after the company reported a Q2 FY23 sales decline of 19.3% YoY to $800.48 million, despite beating the analyst consensus estimate. The company's gross margin contracted 530 basis points to 47.5%, and the gross profit fell 27.4% to $380 million. The company raised the lower end of its FY23 revenue outlook and expects the luxury housing market and broader economy to remain challenging throughout fiscal 2023 and into next year.
September 08, 2023 | 4:49 pm
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RH reported a Q2 FY23 sales decline of 19.3% YoY, causing its shares to trade lower. The company's gross margin and profit also fell. However, it raised its lower FY23 revenue outlook.
RH's Q2 FY23 sales decline, along with a contraction in gross margin and profit, are likely to negatively impact its stock price in the short term. However, the company's raised FY23 revenue outlook may provide some positive sentiment among investors.
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