RH (RH)

RH's stock price experienced fluctuations over the last six months, surging approximately 80% despite a Q3 earnings miss, driven by positive future outlook and growth. However, over the last 12 months, the stock's price decreased by 50.27%, though it showed a year-to-date return of 15.20%. In Q3 CY2025, RH met revenue expectations but missed EPS estimates, with Q4 revenue guidance below estimates. Despite market challenges, Q2 2024 GAAP net revenues increased by 3.6% year-over-year.

Demand for RH's products increased in Q2 2024 and August. Total demand grew year-over-year in Q3 FY24, with November experiencing significant increases. The luxury home furnishings market declined after the pandemic peak, and RH's business saw changes from fiscal 2021 through fiscal 2023 due to interest rates, inflation, and a housing market slowdown. Despite the weak housing market, the company appears to be in a demand upcycle.

RH, formerly Restoration Hardware, is a specialty retailer in the Consumer Discretionary sector, focusing on high-end furniture and home decor for affluent customers. Its products are distributed through RH galleries, e-commerce, sourcebooks, and trade channels. The company also operates RH outlet stores, guesthouses, and interior design offices, with plans to expand its collection.

RH's geographic footprint primarily involves its galleries located in high-end shopping areas, along with a strong e-commerce presence. The company plans to open Design Galleries in every major market, with a long-term goal of generating substantial global revenues.

RH aims to be a leading luxury brand and "arbiter of taste for the home." The company has undertaken an "80% changeover in the assortment" of its products and is accelerating its gallery growth. While facing concerns regarding gross margin outlook, there is belief in upside potential driven by top-line initiatives. The release of new sourcebooks has been described positively.

RH's ownership is primarily institutional, with major shareholders including Fmr Llc (Fidelity), BlackRock, Inc., and Vanguard Group Inc. As of mid-2025, FMR LLC (Fidelity) was the largest shareholder. CEO Gary Friedman controls approximately 12% of the company's voting power.