RH Stock Drops 15% on Q2 Results and Tariff Concerns

RH Q2 Earnings and Revenue

• 📉 RH reported $2.93 adjusted earnings, though it's unclear if this is comparable to estimates.
• 💰 Revenues of $899 million fell short of the street's expectation of $95 million.

Tariff Impact and Outlook

• ⚠️ The company detailed a $30 million hit due to tariffs in its outlook.
• 🔍 RH is also facing potential further investigations from the Trump administration into furniture makers, steel, and aluminum.
• 🗓️ The company is delaying the release of some spring lookbooks.
• 🌐 Despite efforts to reduce reliance on China and shift production to North Carolina, the outlook is described as murky due to potential new tariffs.

Market Reaction

• 📈 RH shares fell approximately 15% following the release of the Q2 results and outlook.