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RH has faced significant challenges lately, particularly due to tariffs impacting its overseas manufacturing and a struggling luxury furnishings market. Despite a considerable 40% drop in its stock price and a year-to-date decline of 63%, there are mixed sentiments about its growth potential, with some experts noting the company's positive demand trends in July and August. Recent performance seems perplexing as the stock has doubled since last June, despite no substantial fundamental changes in its business model. The CEO's aggressive expansion strategy, investing in luxurious experiences and real estate, raises concerns about financial sustainability, particularly given the rising interest rates and the tightened housing market. While some see a future housing boom driven by falling interest rates, others question whether RH can rebound without a fundamental shift in its operations.
They keep posting disappointing numbers and after the latest, the stock dropped 17% today. Is the CEO a visionary or driving RH to ruin? Pre-2021, RH was a juggernaut as they build luxurious stores including dining around the world at their stores. Also, they're moving into real estates, including spas and hotels. They're spending a fortune to build luxurious experiences. But their core business of luxury furnishings is struggling. They've borrowed money to fund this expansion, however, they spent a big chunk of that money to buyback shares just as interest rates rose and the housing market tightened. Can rates fall fast enough to save RH? Doesn't think so. The outlook is dwindling, but the CEO keeps spending.
RH is a American stock, trading under the symbol RH-N on the New York Stock Exchange (RH). It is usually referred to as NYSE:RH or RH-N
In the last year, 12 stock analysts published opinions about RH-N. 4 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for RH.
RH was recommended as a Top Pick by on . Read the latest stock experts ratings for RH.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
In the last year, there was no coverage of RH published on Stockchase.
On 2025-04-25, RH (RH-N) stock closed at a price of $185.49.
Their products are amazing, but expensive. They need to cut prices, though tariffs will force them to raise prices, since their products are made in Vietnam.