By Dhirendra Tripathi

Investing.com – RH (NYSE:) stock plunged nearly 12% Wednesday after the high-end furniture retailer said it had experienced softening of demand in the first quarter so far.

The first quarter net revenue growth is 7-8% in comparison to 78% for last year. The company said the weakening coincided with Russia’s invasion of Ukraine in late February and the market volatility that followed.

The company said, “it is prudent to remain conservative until demand trends return to normal.”

After its fourth quarter revenue from January 29 to January 29, it fell below estimates, the company raised concerns.

The current year’s net revenue is expected to grow 5-7%, as opposed to the 32% increase in 2021. Adjusted operating margin could go either way compared to last year’s, according to the company’s forecast. The company expects it to rise between 25% and 26%, compared with 25.6% in 2021.

Just about the company met its 2021 annual revenue forecast, which was at the lower end. According to its December third revision, the company forecasted that annual revenue would rise 32-33%, as opposed to its previous projection of an increase of 31-33%. The company’s annual revenue grew 32% to $3.76 Billion, while it was higher by 11% at $903 MILLION.

The company’s online businesses continue to lose money while adjusted operating margin expanded by 1.5 percentage points to 25.2% in the quarter.

In the fourth quarter, adjusted profit increased 14% and reached $164million