Shares of Restoration Hardware (RH) plunged 34.55% in pre-market trading on Thursday following a disappointing fourth-quarter earnings report and concerns over newly announced tariffs. The luxury home furnishings retailer's stock took a significant hit as it grappled with multiple challenges, including missed financial targets and an uncertain economic landscape.

RH reported adjusted earnings per share of $1.58 for the quarter ended January 31, falling well short of the analyst consensus estimate of $1.92. Revenue came in at $812.41 million, missing the projected $829.56 million. The company's performance was impacted by what CEO Gary Friedman described as "the worst housing market in almost 50 years," despite a 17% increase in demand during the fourth quarter.

Adding to investor concerns, RH provided a cautious outlook for fiscal year 2025, forecasting revenue growth of 10% to 13%, below Wall Street's expectations of around 15%. The company's guidance was further complicated by President Donald Trump's announcement of new reciprocal tariffs on various countries, including a baseline 10% tariff on all imports. As RH looks to mitigate the impact of these tariffs and adapt to the changing retail landscape, investors will be closely watching how the company manages its inventory, pricing strategy, and manufacturing partnerships in the coming quarters.