- RH fell 13% on Wednesday after the company offered soft guidance for the quarter ahead.
- CEO Gary Friedman likened the uncertainty of today’s economy to a scene from the 2015 film The Big Short.
- “I couldn’t be more excited, but I couldn’t be more uncertain, and that’s just the story,” Friedman said.
RH, formerly known as Restoration Hardware, fell as much as 13% on Wednesday after high-end furniture retailer reported fourth-quarter earnings and called the current economic environment as uncertain as ever.
RH reported a mixed quarter, with earnings beating estimates while revenue barely missed expectations. But having a bigger impact on the company’s stock price on Wednesday was the company’s muted first-quarter guidance.
For the first-quarter, RH expects net revenue growth of 7%-8%, far below last years growth of 78%, which benefited from poor year-over-year comparables due to the COVID-19 pandemic. For all of 2022, RH expects net revenue growth between 5% and 7%, compared to 32% in 2021.
Rising inflation, surging interest rates, and deteriorating consumer sentiment has added to RH CEO Gary Friedman’s hazy outlook, and in the company’s earnings call he referenced a scene from the 2015 film The Big Short to illustrate the challenges ahead.
“I don’t want to scare everybody. But I talk about them, like…
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You can read this complete story at: https://markets.Fintech Zoom.com/news/stocks/restoration-hardware-stock-price-ceo-warns-big-short-economy-inflation-2022-3
