Why Are Investors Dumping RH Stock Today? Here’s What You Need to Know

RH shares take a nosedive as institutional investors flee traditional retail positions.

Market Exodus Accelerates

High-net-worth portfolios pivot hard from luxury home furnishings toward digital asset allocations. The RH selloff reflects broader sector rotation into crypto infrastructure plays.

Digital Gold Rush

Bitcoin's rally past $100K pulls capital from legacy consumer stocks. Smart money chases asymmetric returns in DeFi yields rather than furniture margins.

Retail Reckoning

Traditional retail investors finally wake up to discover their 'safe' blue-chip stocks got outperformed by memecoins—again. Nothing says portfolio diversification like watching your Roth IRA get smoked by dog-themed cryptocurrencies.

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For context, RH is a high-end home furnishings retailer. Yesterday, the company reported a profit of $51.7 million, up from $29 million a year earlier. Meanwhile, adjusted earnings came in at $2.93 per share, slightly below the $3.21 expected by analysts surveyed by FactSet. Revenue ROSE 8.4% to $899.2 million, just short of the $905.4 million forecast.

Tariff Costs Force RH to Trim Outlook

Despite the mixed results, tariff concerns weighed on investor sentiment. CEO Gary Friedman warned that the company expects a riskier business environment ahead due to tariff uncertainty, market volatility, and inflation. He stated that the company continues to navigate what he calls the worst housing market in nearly 50 years.

The company added that its updated outlook factors in $30 million in additional tariff costs, after mitigation, for the second half of the year. RH also expects some revenue to be delayed into next year after postponing the launch of its fall sourcebook by eight weeks. The delay came as the company waited for clarity on tariff rates to finalize pricing.

As a result, RH now anticipates that about $40 million in revenue will be pushed out of the current quarter and spread across the next two quarters.

Is RH a Good Stock to Buy Today?

Overall, analysts have a Moderate Buy consensus rating on RH stock based on seven Buys, seven Holds, and two Sells assigned in the last three months. The average RH price target of $262.0 per share implies a 15% upside potential on current levels.