RH also provided its revenue forecast for 2024, expecting it to range between $3.04 billion to $3.1 billion, a narrowed range compared to the prior forecast of $3 to $3.1 billion. The company maintained its adjusted operating margin outlook of 14.5% to 15.5%.
For the third quarter, RH forecasts revenue between $740 million to $760 million and adjusted operating margin in the range of 8.0% to 10.0%. Analysts were looking for sales of as much as $774 million.
In the second quarter, RH reported adjusted earnings per share of $3.93, surpassing the estimate of $2.48, with net revenue at $800 million, compared to the estimate of $777.7 million.
The adjusted gross margin was 47.5%, slightly below the estimated 47.6%, while the adjusted operating margin was 20.2%.
“We continue to expect the luxury housing market and broader economy to remain challenging throughout fiscal 2023 and into next year as mortgage rates continue to trend at 20-year highs and the current outlook is for rates to remain unchanged until the second quarter of 2024,” the company said in its shareholder letter.