RH (RH.US) stock tumbled over 12.0% during today's session after the high-end furniture retailer experienced a softening of demand in the first quarter. The company reported revenues of $902.74 million, well below Wall Street estimates of $931.31 million although its profit $5.66 per share beat analysts’ expectations of $5.59 per share. For fiscal 2022, net revenue growth is projected in the range of 5-7%, compared to 32% last year. RH also announced a 3-for-1 stock split. CEO Gary Friedman said that his company has moved to a more-conservative stance on its expansion plans and will be cutting his catalog to 300-350 pages from 450-500. He also pointed out that the supply chain issues may persist in the coming months. "We have experienced softening demand in the first quarter that coincided with Russia's invasion of Ukraine in late February and the market volatility that followed," Friedman said while delivering conservative Q2 guidance.
"It's clear now to everyone that inflation isn't going back to 2%, even though Janet Yellen, not too many weeks ago when it was 4% or 5%, said it was going to 2%. And 2 weeks later, it went to 7.5%. And now it's at 7.9%," Friedman said.
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Create account Try a demo Download mobile app Download mobile app"When it returns to normal? Not sure. How aggressive is the Fed going to be? Not sure. There are things we know, and I don't mean to be a pessimist, but history would tell us 4 to 5 times the Fed raises interest rates over a sustained period, we have a recession. And I don't need to tell you guys that math. That is just the fact" he added.
RH (RH.US) - buyers managed to break above upper limit of the descending channel yesterday, however the bullish move turned out to be short lived. Stock launched today's session sharply lower, below 50 SMA (green line) and if current sentiment prevails, downward move may accelerate towards support at $324.35 which is marked with previous price reactions. Source: xStation5
