What’s happening with RH shares in extended hours?

RH (NYSE: RH) is trading down in extended hours after reporting disappointing results for its fourth financial quarter that it attributed to a slowing economy.

RH shares down on weak guidance

The retail stock is taking hit because the company’s guidance came in shy of Street estimates as well.

RH is now calling for its full-year revenue to fall between $2.9 billion and $3.1 billion. In comparison, analysts were at $3.6 billion. Still, the management said in a letter to shareholders:

Its Q1 outlook for revenue also missed expectations by some $100 million. Versus their year-to-date high, RH shares are down nearly 35% at writing.

RH Q4 financial highlights

• Net income printed at $106.9 million versus the year-ago $147 million
• Per-share earnings also declined significantly from $4.91 to $4.21
• Adjusted EPS came in at $2.88 as per the earnings press release
• Revenue tanked just over 14% on a year-over-year basis to $901.5 million
• FactSet consensus was $3.32 of adjusted EPS on $777.3 million revenue

RH ended the quarter with roughly $1.5 billion in cash including cash equivalents and restricted crash. The letter to investors also said:

Wall Street currently has a consensus “overweight” rating on RH shares.