Image source: Restoration Hardware.

What: Shares of furniture retailer Restoration Hardware Holdings (NYSE:RH) were down a staggering 27.6% at 12:35 p.m. ET on Thursday after its preliminary quarterly results disappointed Wall Street.

So what: Restoration shares have plunged over the past few months on concerns over slowing growth, and downbeat guidance for Q4 -- management now sees Q4 adjusted EPS of $0.99 on revenue of $647 million versus the consensus of $1.39 and $71.85 million, respectively -- only confirms those worries. Management blamed shipping delays, weak demand in regions leveraged to energy markets, and increased promotional activity for the gloomy view, giving short-term oriented investors little reason to stick around. 

Now what: Management also expects adjusted operating margin to fall 120 basis points in Q4 while comparable brand growth is expected to increase just 9%. "When we pause and think about the current market uncertainty," wrote Chairman and CEO Gary Friedman in a letter to shareholders, "our bias is to de-risk our strategy in the short term, focus on sharpening execution in our core business, and continue to invest in the important long-term strategies that will continue to fuel our growth and strengthen our brand." Of course, with the shares now off a whopping 65% from their 52-week highs, management has plenty of work ahead in regaining investor confidence.