Luxury furniture maker RH (RH) reported second quarter earnings and revenue below Wall Street’s expectations and cut its annual outlook on Thursday as tariffs took a bite.

“There’s going to be gross margin headwinds from tariffs coming,” CEO Gary Friedman said on the earnings call. “You just can’t raise prices fast enough, and there’s only so much room our manufacturing partners have [to absorb costs].”

Friedman said that tariff uncertainty led the company to delay a new brand extension and its Fall Interiors Sourcebook.

As a result, RH said it expects a $30 million hit to profits in the second half of the year. The company also lowered its full-year revenue growth outlook to 9% to 11% from 10% to 13% previously.

Earnings per share of $2.62 missed Wall Street estimates of $3.25 per share. Revenue also missed: $899 million compared to $905 million estimated.

The stock fell 9% in premarket trading.

Kroger stock rose more than 1% in premarket trading after the supermarket operator beat earnings estimates and raised the low end of its full-year profit guidance.

The company reported earnings per share of $1.04, topping Wall Street’s estimates of $1 and above the $0.93 per share earnings it reported a year ago. Revenue remained flat year over year, coming in at $33.9 billion. Analysts were looking for $34.1 billion, according to S&P Global Market Intelligence.

Kroger adjusted its 2025 outlook and now sees same-store sales growth in a range of 2.7%-3.4%, above its previous range of 2.25%-3.25%. At the same time, it raised the low end of its earnings per share guidance by $0.10. Earnings per share are now expected to be between $4.70-$4.80 for the year.

Kroger has been restructuring to streamline its operations under interim CEO Ron Sargent, including cutting 1,000 jobs and closing some 60 stores. The company ousted longtime CEO Rodney McMullen in March following a probe into his conduct.

“Kroger delivered another quarter of strong results, which demonstrates the clear and measurable progress we’ve made on our priorities — to simplify our organization, to improve the customer experience and to focus on work that creates the most value,” Sargent said in a statement.

Chewy (CHWY) earnings declined year over year, sending the stock over 8% lower in Wednesday’s premarket trading.

The pet-focused e-commerce retailer posted earnings of $0.14 per share, meeting Wall Street analyst estimates, according to S&P Global Market Intelligence. But that earnings figure marked a $0.54 profit drop from the $0.68 per share earnings reported in the same quarter a year ago.

The company said the decrease in profits was due to share-based compensation expenses and related taxes.

Revenue increased 8.6% year over year to $3.1 billion, coming in above estimates of $3.08 billion.

Chewy said it had 20.9 million active customers at the end of the quarter, and net sales per active customer grew 4.6% to reach $591 million.

Listen to the earnings call live here.

Automation software provider UiPath (PATH) said its agentic AI automation platform saw momentum in the second quarter, leading it to issue better-than-expected third quarter guidance.

In the third quarter, UiPath expects revenue in the range of $390 million to $395 million, which has a midpoint above the $345 million to $350 million expected by Wall Street.

For the quarter that just passed, UiPath reported revenue of $361.7 million, compared to analyst estimates of $347.3 million, representing 14.4% annual growth. Adjusted earnings per share were $0.15, compared to analyst estimates of $0.08.

UiPath shares added 2% in after-hours trading following the results.

Reuters reports:

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DocuSign (DOCU) reported an earnings beat and revenue outlook raise on Thursday. The stock rose 6% after hours.

Earnings of $0.31 per share on $800.6 million in revenue topped Wall Street analyst estimates, which were for $0.27 per share on $780 million in revenue.

“Q2 was an outstanding quarter, with AI innovation launches and recent go-to-market changes leading to strong performance across the eSignature, CLM, and IAM businesses,” CEO Allan Thygesen said. “Q2 business results outperformed, leading to one of Docusign’s highest growth and profitability quarters in recent years.”

The company raised its annual outlook. In the October quarter, it expects to bring in revenue of $804 million to $808 million. For the full year, it now sees revenue in a range of $3.18 billion to $3.2 billion.

Lululemon (LULU) stock plunged 13% after the athleisure maker reported a same-store sales decline in the US. The company also lowered its annual forecas, noting that it’s “navigating industry-wide challenges, including higher tariff rates.”

Overall net revenue increased 7% to $2.5 billion, with uneven gains split between its Americas business and international business. In the second quarter, same-store sales in the Americas decreased 4%, while international comparable sales increased 15%.

Diluted profits of $3.10 per share beat estimates for $2.85 per share, according to S&P Global Market Intelligence.

“While we continued to see positive momentum overall in our international regions in the second quarter, we are disappointed with our U.S. business results and aspects of our product execution,” lululemon CEO Calvin McDonald said. “We have closely assessed the drivers of our underperformance and are continuing to take the necessary actions to strengthen our merchandise mix and accelerate our business.”

Lululemon revised its full-year outlook lower, saying it now expects net revenue to be in the range of $10.85 billion to $11 billion, representing growth of 2% to 4%. It previously forecast revenue of $11.15 billion to $11.3 billion, representing growth of 5% to 7%.

Diluted earnings per share are now expected to be between $12.77 and $12.97 for the year instead of $14.58 to $14.78 per share.

C3.ai (AI) stock dropped 13% in premarket trading on Thursday after the artificial intelligence application company widely missed Wall Street estimates and reported declining revenue year over year.

Here’s what C3.ai reported on the top and bottom lines:

C3.ai warned about its drop in revenue in August as the company undergoes a structural reorganization and as its CEO, Tom Siebel, has been grappling with health issues.

To that point, the company announced that it appointed Stephen Ehikian as CEO starting Sept. 1, replacing Siebel, who will stay on as executive chairman. Ehikian is an enterprise software entrepreneur who recently served in the Trump administration, implementing the AI action plan, as acting administrator of the US General Services Administration.

In the fiscal first quarter, C3.ai said it closed 12 agreements across the federal sector, accounting for 28% of total bookings.

For the fiscal second quarter, C3.ai expects revenue of $72 million-$80 million, below the $84.5 million Wall Street was looking for, per S&P Global Market Intelligence. The company withdrew its earnings guidance for the full fiscal year 2026.

American Eagle Outfitters (AEO) forecasts for sales topped Wall Street estimates, as the clothing retailer applauded the impact of high-profile ad campaigns on demand.

The company expects quarterly comparable sales to rise slightly, versus the 0.3% drop seen by analysts. For the year, it expects comparable sales to come in flat, where estimates were for a 1.1% decline.

Shares of American Eagle Outfitters (AEO) shot up nearly 24% in premarket trading after the earnings report release late Wednesday.

American Eagle’s CEO Jay Schottenstein credited high-profile ads featuring actor Sydney Sweeney and National Football League (NFL) star Travis Kelce with spurring demand for its jeans and apparel.

“The fall season is off to a positive start. Fueled by stronger product offerings and the success of recent marketing campaigns with Sydney Sweeney and Travis Kelce, we have seen an uptick in customer awareness, engagement and comparable sales,” Schottenstein said in the results release.

Reuters reports:

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Hewlett Packard Enterprise Company (HPE) earnings and revenue topped Wall Street forecasts, but its current quarter guidance came in lighter than expected. Shares fell less than 2% in after-hours trading.

In its fiscal third quarter, HPE reported earnings of $0.44 per share, beating estimates for $0.43. Revenue grew 18% to $9.14 billion, above estimates for $8.65 billion.

Looking ahead, HPE expects profits of $0.56 to $0.60 per share in the fiscal fourth quarter, which has a midpoint below expectations. The company also raised its full-year profit guidance to a midpoint of $1.90.

Investors continue to monitor HPE’s margins. While the company’s revenue has seen an inflection in recent quarters due to the demand for AI server equipment, the high cost of chips and other materials has weighed on the profitability of HPE’s server business.

In its server segment, HPE reported a 6.4% operating profit margin, compared to 10.8% from the prior-year period.

Figma (FIG) stock tanked 10% after the design software company posting a second quarter revenue beat and breakeven earnings in its first quarterly report since going public.

Second quarter revenue jumped 41% to $249.6 million, beating the estimate of $248.8 million. For the third quarter, Figma expects revenue to be between $263 million and $265 million, above analyst estimates.

Reuters reports:

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Salesforce (CRM) stock fell as much as 5% after hours after the company reported results in line or slightly better than estimates that failed to wow investors looking for big AI gains.

For the quarter, Wall Street was looking for Salesforce’s artificial intelligence efforts to show broader adoption — and monetization. Year to date, the stock has underperformed with a 23% loss.

Salesforce did beat Wall Street estimates and show steady growth: Revenue climbed 9.7% year over year to $10.24 billion, slightly above analyst expectations for $10.13 billion. Adjusted earnings per share of $2.91 were also above estimates for earnings of $2.78 per share.

For the 2026 fiscal year, Salesforce initiated revenue guidance of $10.24 billion to $10.29 billion and raised the low end of its full-year revenue guidance, which now stands in a range of $41.1 billion to $41.3 billion. Both of those outlooks represent single-digit growth, which lags in comparison to other large-cap tech and AI players.

“It’s not bad — no one is going to say these are bad numbers,” Jefferies senior analyst Brent Thill told Yahoo Finance in reaction to the results. “We’re just playing a relative game, where everyone else on a relative basis is way better.”

The cloud software provider also announced a $20 billion increase to its existing share buyback program, bringing the total to $50 billion.

Read more here.

Cloud security provider Zscaler (ZS) reported annual revenue above Wall Street estimates on Tuesday, which sent its stock nearly 2% higher in premarket trade on Wednesday.

The company posted earnings of $0.89 per share on revenue of $719.2 million, compared to analysts’ estimates for $0.80 per share and $706.9 million in revenue.

From Reuters:

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