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. 

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Restoration Hardware. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.