RH cuts outlook weeks after previous guidance, shares slide

By MICHELLE CHAPMAN
AP Business Writer

Shares of RH are down 9% at the opening bell after the luxury furniture store chain cut its sales expectations just weeks after issuing guidance to its investors, blaming worsening macro-economic conditions and rising mortgage rates. After predicting earlier this month that 2022 sales would be flat to up 2%, the Corte Madera, California, company said late Wednesday that it now believes sales will fall between 2% and 5%. CEO Gary Friedman pointed to mortgage rates that have doubled since last year, and plunging sales of luxury homes. Friedman pointed to a more pronounced slowdown in the second half of the year.