Shares of RH (NYSE:RH) are down 0.2% to trade at $227.87 at last check, after the upscale home furnishings retailer missed second-quarter expectations, reporting earnings per share of $2.93 on $899.2 million in revenue. The California-based company lowered its full-year outlook, pointing to a weak housing market and tariffs.
RH is eyeing a fifth-straight daily loss, deepening its 41.6% year-to-date deficit. The stock suffered a 40.1% post-earnings plunge in April -- its worst day on record. Now, as the equity pulls back from its Sept. 11, six-month high, the 50-day moving average is moving in as support.
Analysts are chiming in with downgrades, with no fewer than four firms issuing price-target cuts, including Stifel from $390 to $320. Heading into today, 10 of the 19 firms in coverage held a "hold" or worse recommendation.
Over the past two weeks, the stock has seen plenty of bearish attention. On the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day put/call volume ratio of 1.09, which ranks in the 83rd percentile of its annual range.
RH is seeing mixed options activity today, though, with 18,000 calls and 17,000 puts traded so far -- 8 times the stock's average daily volume. The most active contracts are the September 217.50 put and 230 call.
