RH (NYSE:RH) shares are trading lower in Thursday's after-hours session after the company reported financial results and issued weak guidance.
RH said first-quarter revenue increased 11% year-over-year to $957.29 million, which beat the estimate of $924.81 million, according to data from Benzinga Pro. The company reported quarterly earnings of $7.78 per share, which beat the estimate of $5.38 per share.
"Despite our record financial performance in the first quarter, we have experienced softening demand trends which began at the time of the Russian invasion of Ukraine and have further slowed during the market disruption over the past several months," said Gary Friedman, CEO of RH.
RH said it expects second-quarter net revenue to be down 1% to 3%. The company expects full-year revenue growth to be flat to up 2%.
"While we expect the next several quarters to pose a short-term challenge as we cycle the extraordinary growth from the COVID-driven spending shift, shed less valuable market share as we continue to raise our quality and navigate through the multiple macro headwinds, we believe our long-term investments will enable us to continue driving industry-leading performance," Friedman added.
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RH Price Action: RH shares have traded between $236.29 and $744.56 over a 52-week period.
The stock was down 1.64% in after hours at $297.00.
Photo: justinedgecreative from Pixabay.
