RH, the home furnishing company, reported fourth-quarter results that fell short of Wall Street estimates, citing adverse weather and shipping delays as factors that impacted performance. Despite this, the company highlighted ‘exceptional’ demand for its new catalogue of products. The stock (NYSE:RH) was up 5% in afterhours trading following the announcement.
The reported earnings of $0.72 on revenue of $738 million missed analyst estimates of $1.69 and $778 million. The company attributed a $40 million revenue hit in the fourth quarter to severe January weather and shipping delays related to the ongoing conflict in the Red Sea.
RH specializes in luxury home furnishings and noted a significant 45% decline in luxury home sales compared to the previous year, as buyers encountered affordability constraints.
Looking ahead to fiscal 2024, RH forecasts demand growth of 12% to 14% and revenue growth of 8% to 10%. For Q1, demand growth is anticipated to be in the positive mid-single digits, with revenues in the negative low-single digits.
Despite the challenges, the company expressed optimism about the initial demand for its new luxury outdoor furniture, RH Outdoor Sourcebook, which saw exceptional reception and is expected to contribute to significant market share in fiscal 2024.
