RH (RH:US), which is formerly known as Restoration Hardware, saw its shares drop about 7% in its Friday trading session after the company's second-quarter revenue forecast fell short of estimates.

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.

Senator Tommy Tuberville sold some RH shares earlier this year, while Congressman Tom Suozzi was buying the stock in 2022.