RH (NYSE:RH) shares are trading lower Thursday after the company updated its fiscal 2022 outlook to reflect weakening demand.
"The deteriorating macro-economic environment has resulted in lower than expected demand since our prior forecast, and we are updating our outlook, particularly for the second half of the year," said Gary Friedman, chairman and CEO of RH.
RH said it expects demand to continue to soften during the remainder of fiscal 2022. As a result, the company now expects full-year revenue to be down 2% to 5%. RH maintained its second-quarter revenue outlook of down 1% to 3%.
The company also said it hasn't repurchased any shares since announcing the expansion of its stock repurchase authorization on June 2.
Analyst Assessment:
- Telsey Advisory Group analyst Joseph Feldman maintained RH with an Outperform rating and lowered the price target from $375 to $285.
- Wells Fargo analyst Zachary Fadem maintained RH with an Overweight rating and lowered the price target from $400 to $300.
- Barclays analyst Adrienne Yih maintained RH with an Overweight rating and lowered the price target from $400 to $300.
RH Price Action: RH is making new 52-week lows on Thursday.
The stock was down 8.88% at $216.25 at press time, according to data from Benzinga Pro.
Photo: khiem tran from Pixabay.
