Shares of specialty retailers in the furniture and home goods space are facing selling pressure in Wednesday’s after-hours session following disappointing earnings from RH (NYSE:RH).
What To Know: RH missed analyst estimates on the top and bottom lines in the fourth quarter, reporting revenue of $812.41 million versus estimates of $829.56 million, and adjusted earnings of $1.58 per share versus estimates of $1.92 per share.
The company said demand softened in mid-December after mortgage rates spiked after the Federal Reserve signaled that rates would remain largely unchanged. The demand commentary appears to be weighing on shares of Wayfair Inc (NYSE:W) and Williams-Sonoma Inc (NYSE:WSM), which are due to report quarterly results next month.
Wayfair considers itself “the destination for all things home.” The home furnishings retailer will report its first-quarter financial results before the market opens on May 1. Analysts currently expect the company to report a loss of 22 cents per share on revenue of $2.71 billion, according to estimates from Benzinga Pro.
Williams-Sonoma is a digital-first home retailer. The company is due to report first-quarter results sometime in May, although a date has not yet been confirmed. Analysts are looking for earnings of $1.74 per share and revenue of $1.65 billion, per Benzinga Pro estimates.
It’s also worth noting that broader markets are facing heavy selling pressure after hours after President Donald Trump announced reciprocal tariffs on a slew of countries at an event outside of the White House. The SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500, was down about 2.27% after hours at last check.
W, WSM Price Action: At publication time, Wayfair shares were down 14% after-hours, trading at $29, and Williams-Sonoma shares were down 8.41% after-hours at $150.13, per Benzinga Pro.
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