RH (RH) shares sank more than 14% in midday trading after the high-end home furnishings retailer po✃sted lower-than-expected guidance as rising mortgage rates affect lꦆuxury home sales.

RH on Thursday forecast current-quarter sales of $740 million to $760 million, a 14% decline from a year ago and short of analysts’ estimates. It sees fourth-quarter revenue of $760 million to $800 million, with a midpoint above forecasts, and it boosted the low end of its full-year outlook to $3.04 billion from the previous $3.0 billion.

In its fiscal 2023 second quarter, RH reported a profit of $3.93 per share. Revenue tumbled 19% to $800.5 million. However, both were more than anticipated.

CEO Gary Friedman said that the company continues to expect both the luxury 澳洲幸运5官方开奖结果体彩网:housing market and broader economy to “remain challenging throughout fiscal 2023 and into next year as 澳洲幸运5官方开奖结果体彩网:mortgage rates continue🏅 to trend at 20-year highs.” He added that RH expects rates to r꧙emain unchanged until the second quarter of 2024.

Friedman also told employees that they now need to 澳洲幸运5官方开奖结果体彩网:return to the workplace, saying it’s time to “break the bad habits of COVID” and “get off the screens, get out of our home office, and reconnect with our team office.”

Shares of RH dropped to two-month lows Friday, but remain🐭ed in positive territory for the year.