RH Stock’s Potential Amid Market Challenges
RH (NYSE: RH), the luxury home furnishings retailer formerly known as Restoration Hardware, has faced significant headwinds since its pandemic-era peak. The stock has plummeted 76% from its 2021 highs, with a 57% year-to-date decline in 2025 following new import tariffs. Weak housing markets and inflationary pressures have compounded the challenges for this consumer discretionary play.
Yet beneath the surface, RH shows surprising resilience. Fiscal Q2 revenue grew 8.4% to $899.2 million, with demand—a proxy for orders—jumping 13.7%. Margin expansion suggests operational discipline despite macroeconomic crosscurrents. The labor market's weakness may further pressure spending, but patient investors could be rewarded if RH sustains its growth trajectory.
