Restoration Hardware shares are down $10.41, or 20 percent, to $51.92, in company’s worst day as a public company, USA Today reported last week. The company missed quarterly earnings expectations, reporting an adjusted quarterly profit of 99 cents a share, missing expectations by 29 percent.
According to the newspaper, S&P Global Market Intelligence says that investors were stunned, because before this, Restoration Hardware had never missed earnings expectations. The article says:
Also concerning is the fact that adjusted profit not only missed expectations, but fell 3 percent from the same period a year ago. Quarterly revenue of $647 million also missed expectations by 9 percent, although it was up 11% from the same period a year ago.
Restoration Hardware attributes the drop to drooping buyer confidence as well as to weak oil prices impacting demand.