Investing.com -- RH (NYSE: RH) reported fourth quarter results that fell short of analyst expectations, with adjusted earnings per share of $1.53 missing the consensus estimate of $2.22 by $0.69. Revenue came in at $842.6 million, below the $873.48 million analyst estimate, though up 3.7% from the prior year period.

The luxury home furnishings retailer said fourth quarter and fiscal year 2025 net revenues were negatively impacted by approximately $30 million due to higher than expected backorder and special order balances resulting from tariff-related resourcing, and approximately $10 million from adverse weather at quarter end. The company's first quarter 2026 outlook also disappointed, with revenue expected to decline 2% to 4% and adjusted EBITDA margin of 5.5% to 6.5%. Shares fell 14% in after-hours trading Tuesday.

For the full fiscal year 2025, RH reported net revenues of $3.44 billion, up 8.1% YoY, with GAAP net income increasing 72% to $125 million. The company generated free cash flow of $252 million for the year.

"The Company's Fourth Quarter and Fiscal Year 2025 net revenues were negatively impacted by approximately $30M due to higher than expected backorder and special order balances as a result of tariff related resourcing," said Gary Friedman, RH Chairman and Chief Executive Officer.

For fiscal year 2026, RH expects revenue growth of 4% to 8%, with the midpoint of 6% appearing conservative. The company projects adjusted EBITDA margin of 14% to 16% and adjusted free cash flow of $300 million to $400 million. The outlook includes an approximate negative 270 basis point adjusted EBITDA margin impact from preopening and startup costs to support international expansion.

The company reported GAAP operating margin of 11.5% in the fourth quarter, compared to 8.7% in the prior year period.