RH Adjusts Q3 Revenue Growth To A Range Of 7%-9%; FY24 Revenue Growth To A Range Of 5%-7%
Portfolio Pulse from Benzinga Newsdesk
RH has adjusted its Q3 revenue growth forecast to 7%-9% and FY24 revenue growth to 5%-7%. Despite challenging industry conditions, RH expects demand trends to accelerate in fiscal 2024 and 2025. However, revenue is expected to lag demand, impacting margins. The company is also facing a 230 basis point drag due to international expansion costs.
September 12, 2024 | 8:08 pm
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RH has revised its revenue growth forecasts for Q3 and FY24, expecting demand to outpace revenue due to assortment transformation and backorder issues. This will impact operating and EBITDA margins negatively. International expansion costs will further pressure margins.
RH's revenue growth forecast adjustments indicate potential short-term challenges. The lag in revenue compared to demand, along with increased costs from international expansion, suggests pressure on margins. This could lead to a negative short-term impact on RH's stock price.
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