NEW YORK (TheStreet) -- Restoration Hardware Holdings (RH) - Get Report stock is retreating 22.71% to $40.13 in after-hours trading on Wednesday after the company released preliminary results for the fiscal 2015 fourth quarter that were significantly below estimates.
The Corte Madera, CA-based home furnishings company posted preliminary earnings of 99 cents per share on revenue of $647.21 million for the three months ended January 30.
Wall Street was anticipating earnings of $1.39 per share on $710.87 million in revenue for the latest quarter.
Restoration Hardware attributed the weak results to shipping delays related to the RH Modern brand and unsuccessful promotional activity.
The company also experienced "underperformance in markets affected by energy, oil or currency fluctuations," CEO Gary Friedman said in a letter to shareholders.
"The Canada, Texas and Miami markets were... a four point drag [on revenue] in the fourth quarter despite increased promotional efforts, including reduced shipping charges to incentivize our Canadian customers," Friedman added.
The company will release its full fiscal fourth quarter report on March 23.
Separately, Restoration Hardware has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, reasonable valuation levels and growth in earnings per share, and its weaknesses, including generally disappointing stock performance and weak operating cash flow.
You can view the full analysis from the report here: RH
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.