RH reported fourth-quarter financial results after the market close on Wednesday. Shares are tumbling in reaction to a top- and bottom-line miss. Here’s a rundown of the report.

Q4 Earnings: RH reported fourth-quarter revenue of $812.41 million, missing the consensus estimate of $829.56 million, according to Benzinga Pro. The luxury retailer reported fourth-quarter adjusted earnings of $1.58 per share, missing analyst estimates of $1.92 per share.

Total revenue was up 10% on a year-over-year basis as fourth-quarter demand jumped 17%. The company reported adjusted operating income of $92 million, up 38% year-over-year, and adjusted EBITDA margin of 17.1%.

“The important work and substantial investments we've made over the past two years are now resulting in meaningful share gains and significant strategic separation, positioning the RH brand to expand its leadership position across the luxury home market over the next decade,” the company said in a letter to shareholders.

“While demand softened in mid-December after mortgage rates spiked and mortgage applications fell 22 percent post the Fed signaling rates would remain largely unchanged this year, RH Brand demand stabilized at up 19% in January.”

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Outlook: RH expects first-quarter revenue growth of 12.5% to 13.5%. The company anticipates full-year 2025 revenue growth of 10% to 13%.

RH said it plans to introduce a new RH Outdoor Sourcebook and new RH Interiors Sourcebook in 2025. The company also highlighted plans to launch a “significant” brand extension in the fall that it believes will “meaningfully expand the market size and share of the RH brand.”

RH also plans to open seven design galleries, two outdoor galleries and two new concept galleries throughout the year.

RH executives will further discuss the quarter on a call with investors and analysts at 5 p.m. ET.

RH Price Action: RH shares were down 25.41% after-hours, trading at $186 at the time of publication Wednesday, according to Benzinga Pro.