RH Stock Drops On Q3 Performance: Here's Why
Portfolio Pulse from Ryan Gustafson
RH (NYSE:RH) stock fell after reporting Q3 results with adjusted losses of 42 cents per share, missing the 97 cents estimate and down from $5.67 per share last year. Sales were $751.23 million, below the expected $756.74 million and down 13.56% from last year. Adjusted gross margin decreased to 45.3% from 49.7%. Full-year revenue forecast is $3.06-$3.08 billion, with adjusted operating margin expected at 13.6%-14%. CEO cited higher expenses and costs related to property acquisitions as reasons for the shortfall.

December 07, 2023 | 10:08 pm
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RH reported disappointing Q3 results with significant misses on earnings and sales, leading to a stock price drop of 7.96% in after-hours trading.
The stock price is likely to go down in the short term due to the reported losses, sales miss, and reduced gross margin, which are key indicators of the company's performance and directly impact investor sentiment.
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