RH (NYSE:RH) Trading Down 6% – Here’s Why

RH (NYSE:RH)’s stock price dropped 6% on Friday . The stock traded as low as $147.00 and last traded at $149.7490. Approximately 594,811 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 1,143,033 shares. The stock had previously closed at $159.32.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH beat Q1 expectations, reporting adjusted loss of $1.97 per share versus consensus for a $2.13 loss, with revenue of $800.3 million topping estimates. Article Title
• Positive Sentiment: Management raised FY2026 guidance, now calling for revenue growth of 4.5% to 8.0% and adjusted EBITDA margin of 14.2% to 16.0%, which supports the view that demand remains intact over the full year. Article Title
• Neutral Sentiment: Several Wall Street firms reiterated constructive views, including Guggenheim’s Buy and Baird’s higher $150 target, suggesting analysts still see upside despite short-term volatility. Article Title
• Neutral Sentiment: RH also received a new Strong Sell ranking from Zacks and multiple reports highlighted execution risks, showing sentiment remains mixed after the update. Article Title
• Negative Sentiment: The stock is being pressured by tariff-related sourcing changes that delayed about $45 million of revenue into future periods, raising concerns about near-term growth and margins. Article Title
• Negative Sentiment: RH also posted a GAAP net loss of $13.7 million in the quarter, and investors appear focused on the immediate earnings pressure rather than the improved outlook. Article Title

Analyst Upgrades and Downgrades

RH has been the subject of several analyst reports. The Goldman Sachs Group decreased their target price on shares of RH from $101.00 to $88.00 and set a “sell” rating for the company in a research note on Tuesday, April 7th. Robert W. Baird raised their price target on RH from $125.00 to $150.00 and gave the company a “neutral” rating in a report on Friday. Wells Fargo & Company raised their price target on RH from $160.00 to $175.00 and gave the company an “overweight” rating in a report on Friday. Stifel Nicolaus raised their price target on RH from $110.00 to $130.00 and gave the company a “hold” rating in a report on Friday. Finally, Weiss Ratings downgraded RH from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, April 29th. Seven research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $171.47.

RH Stock Performance

The firm has a market cap of $2.83 billion, a price-to-earnings ratio of 23.68, a P/E/G ratio of 2.73 and a beta of 1.91. The stock has a 50 day moving average of $134.41 and a 200 day moving average of $162.86. The company has a quick ratio of 0.31, a current ratio of 1.19 and a debt-to-equity ratio of 51.28.

RH (NYSE:RH) last released its earnings results on Thursday, June 11th. The company reported ($1.97) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.13) by $0.16. RH had a negative return on equity of 567.82% and a net margin of 3.63%.The firm had revenue of $800.33 million for the quarter, compared to analysts’ expectations of $792.55 million. During the same quarter in the previous year, the business posted $0.13 earnings per share. The business’s revenue for the quarter was down 1.7% on a year-over-year basis. As a group, analysts anticipate that RH will post 5.35 EPS for the current fiscal year.

Insider Transactions at RH

In other RH news, insider Eri Chaya sold 11,000 shares of RH stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $137.92, for a total value of $1,517,120.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders sold a total of 25,000 shares of company stock valued at $3,370,440 in the last quarter. Insiders own 26.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Clearstead Advisors LLC grew its position in RH by 713.3% in the third quarter. Clearstead Advisors LLC now owns 122 shares of the company’s stock valued at $25,000 after acquiring an additional 107 shares during the last quarter. Huntington National Bank grew its holdings in shares of RH by 87.8% during the third quarter. Huntington National Bank now owns 139 shares of the company’s stock worth $28,000 after purchasing an additional 65 shares during the last quarter. Harvest Fund Management Co. Ltd bought a new stake in shares of RH during the third quarter worth about $30,000. Advisory Services Network LLC bought a new stake in shares of RH during the third quarter worth about $31,000. Finally, Wilmington Savings Fund Society FSB grew its holdings in shares of RH by 200.0% during the fourth quarter. Wilmington Savings Fund Society FSB now owns 174 shares of the company’s stock worth $31,000 after purchasing an additional 116 shares during the last quarter. Institutional investors own 90.17% of the company’s stock.

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.