Restoration Hardware (RH - Get Report) fell 17.41% to $32.20 in pre-market trading on Friday after the high-end home furnishings retailer slashed its full-year forecast and issued holiday guidance that widely missed Wall Street's expectations.

The Corte Madera, Calif.-based company projects fourth-quarter earnings per share between 60 cents and 70 cents on revenue of $562 million to $592 million. Analysts had estimated adjusted earnings of $1.08 per share on revenue of $637 million for the current quarter.

But third-quarter earnings, revenue and comparable-store sales topped Wall Street's expectations.

"While sales and EPS were both better than expected, written orders in the third quarter were weaker than planned and the outlook for [the fourth quarter] is significantly lower than we had modeled, moving the much-anticipated 'inflection' for the business" to the first quarter of fiscal 2017, Nomura analyst Jessica Schoen Mace wrote in a note.

The firm is "disappointed" by these results and surprised by several of the factors pressuring the fourth quarter guidance including: "the fact that the business hasn't seen the recovery over the last several weeks cited by other retailers, the source book delay, and the decision to become more aggressive with the SKU rationalization," Mace added.

Business in November was below RH's expectations, which it blamed on "consumer softness" related to the U.S. election and its Fall 2016 Source Books arriving at homes later than planned.

"RH pointed to the delayed arrival of source books pushing revenue into 1Q17, disappointing Holiday Collection sales, and aggressive seasonal clearance as impacting 3Q16. FY16 earnings are expected to be impacted by SKU rationalization, customer accommodations, and deferred membership revenue," Barclays analyst Matthew McClintock said in a note.

Oppenheimer said the company continues to struggle and its fourth-quarter outlook is supportive of the firm's ongoing cautious, near-term stance on the shares.

"Longer term, we continue to watch RH opportunistically in the hope that operational controls at the chain will improve, allowing the company to release the power of its superior omni-channel model and merchandising acumen," the firm wrote in an analyst note.

But in the near term, Oppenheimer sees risks to sales and earnings forecasts and advises clients to stay on the sidelines "at least for now."

For fiscal 2016, RH now sees earnings per share between $1.19 and $1.29, down from its previous view of $1.60 per share to $1.80 per share. Revenue is forecast to range from $2.11 billion to $2.14 billion. Analysts are modeling earnings of $1.64 per share on revenue of $2.17 billion for the full year, according to FactSet.

Third-quarter adjusted earnings of 20 cents per share surpassed analysts' estimates of 16 cents per share. Revenue rose 3% to $549.3 million over last year and exceeded analysts' forecasts of $527.7 million.