RH falls after tariff-driven annual forecast cuts

RH

12/09/2025 10:32

** Shares of furniture retailer RH RH.N down ~9% at $207.08 premarket

** Co cuts fiscal 2025 revenue, adjusted EBITDA margin forecasts; expects $30 million in additional tariff costs after mitigation efforts in second half of year

** Brokerage Jefferies cuts PT by $4 to $205, sees lingering gross margin pressure into first half of FY26

** Sees China reliance to decrease to 2% in Q4 from 16% in Q1, with meaningful portion of the tariff absorbed by vendor partners, and diversification of business that has heavy India reliance

** However, brokerage JP Morgan remains bullish on stock, given interest rate and housing backdrop, accelerating global expansion, and brands' strong relationship to wealth effect - where people spend more money when they feel their assets have increased in value; raises PT to $275 from $250

** Average rating of 20 analysts is "hold"; median PT is $235 - data compiled by LSEG

** Up to last close, stock has fallen 42% YTD

 (Reporting by Neil J Kanatt in Bengaluru)

 ((Neil.JKanatt@thomsonreuters.com;))