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.”
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,