RH stock falls after retailer lowers outlook for the year


HR shares fell 6% in the out-of-hours session on Wednesday after the retailer formerly known as Restoration Hardware narrowed its outlook for the year, saying demand has slowed thanks to an economy “deteriorated.”

RH RH,
-2.65%
he said he expects a 2022 to 5% drop in revenue for prosecutor 2022. The retailer of furniture and household items in June called for revenue growth of between 2% and an increase, in itself, a reduced expectation, and already seemed concerned, seeing that “demand softened” amid economic uncertainty.

HR remained unchanged in its direction for a second-quarter revenue fall of between 1% and 3%.

“The deteriorating macroeconomic environment has led to lower-than-expected demand from our previous forecast, and we are updating our outlook, especially for the second half of the year,” said CEO Gary Friedman in a statement.

Demand will continue to slow throughout the year, thanks to rising mortgage rates, declining home sales and rising interest rates, Friedman said.

The coming quarters will be a “short-term challenge,” the CEO said. HR is expected to report second quarter fiscal results in early September.

HR shares have fallen nearly 39% this year, compared to losses of about 18% in the S&P 500 SPX index,
-0.07%.



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