Luxury home retailer RH says the company experienced “softening demand” during the first quarter that coincided with Russia’s attack on the Ukraine in late February.
“I think the invasion of Ukraine by Russia just became a kind of a reckoning point, if you will, where people had to stop and pay attention to everything,” said Chief Executive Gary Friedman during an earnings Q&A with analysts late Tuesday.
“And we saw our business slow about 10 to 12 points, and it’s been relatively consistent during that period.”
Friedman highlighted a wide range of disruptions including market volatility, housing prices and Fed movement on interest rates among the issues that are now preoccupying shoppers.
See: A key part of the Treasury yield curve has finally inverted, setting off recession warning — here’s what investors need to know
“I don’t think it’s all Ukraine and Russia,” Friedman said. “I think it’s triggered a greater awareness.”
RH
RH,
reported fourth-quarter net income of $147.0 million, or $4.91 per share, up from $130.2 million, or $4.31 per share, last year. Adjusted EPS of $5.66 beat the FactSet consensus for $5.59.
Revenue of $902.7 million was up from $812.4 million last year and missed the FactSet consensus for $931.3 million.
RH is guiding for first quarter revenue growth in the range of 7% to 8% and fiscal 2022 revenue growth in the range of 5% to 7%.
The FactSet consensus is for first-quarter revenue of $927.5 million, implying 7.7% growth, and full-year revenue totaling $4.056 billion, suggesting an increase of 7.9%.
The company also announced plans for a 3-for-1 stock split.
RH stock plunged nearly 12% in Wednesday trading after the results, and shares are down 43.4% over the past year. The benchmark S&P 500 index
SPX,
has gained 16.5% over the last 12 months.
Despite the uncertainty, RH is proceeding with a number of…
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