Shares RH, the company formerly known as Restoration Hardware, plunged nearly 19 percent Friday morning after it cut its 2019 forecast, suggesting that the company's new strategy will take longer to pay off than originally expected.

Late Thursday, RH posted its fiscal fourth-quarter results, which were mixed as revenue fell short of expectations.

The high-end retailer has been shifting to position itself as a luxury lifestyle brand and dropped "Hardware" from its name in 2017. In order to create a more welcoming shopping environment it has been opening so-called RH Galleries, which are expansive museum-style stores.

The company's strategy of initially focusing on experience rather than profit may have contributed to the mixed earnings, while RH also cited the downturn in the high-end housing market, which has weighed on demand for its products.

RH said it will continue to reshape the company and promote it as a high-end lifestyle brand, saying "Leaders have to comfortable making others uncomfortable."

"We also believe, 'We have to think until it hurts, until we can see what others can't see, so we can do what others can't do,'" said RH CEO Gary Friedman in a letter to investors. Instead of moving to a digital-first model, it said, RH will continue to focus on its physical retail locations.