Core Viewpoint - The company RH is navigating uncertainties related to newly imposed tariffs while focusing on in-house initiatives and global market expansion to enhance growth prospects [1][6]. Group 1: Market Conditions and Company Response - Ongoing uncertainties regarding tariffs are particularly concerning for RH, which sources products from various international markets [1]. - The company is executing product transformation and platform expansion strategies to counter market turbulence [1]. - RH's stock price has shown an upward trend following the release of its fourth-quarter fiscal 2024 earnings, reflecting investor optimism [2][3]. Group 2: Supply Chain Management - RH has shifted a significant portion of its production from China to Vietnam, currently sourcing about 35% of its products from Vietnam compared to 23% from China [4]. - The company has also resourced a considerable amount of its China production to its factory in North Carolina [4]. - RH remains optimistic about potential tariff negotiations with Vietnam, which could positively impact its growth [5]. Group 3: Fiscal Guidance and Financial Performance - For fiscal 2025, RH expects revenue growth between 10% and 13%, with adjusted EBITDA margin growth anticipated between 20% and 21% [7]. - The company projects free cash flow of $250-$350 million for fiscal 2025, a significant improvement from the negative cash flow of $213.7 million reported in fiscal 2024 [8]. - Despite macroeconomic headwinds, RH's in-house capabilities are expected to drive a year-over-year estimated growth of 104.1% for fiscal 2025 [12]. Group 4: Earnings Estimates and Market Sentiment - Analysts have downgraded earnings estimates for RH by 17% in the past week due to uncertainties in the housing market and high mortgage rates [9]. - In contrast, RH's estimated growth outpaces that of its industry peers, which are expected to see declines in earnings estimates for fiscal 2025 [12].

Shares of RH (RH 13.94%) were surging today even as the broad market was tumbling for a third straight session in response to President Trump's "Liberation Day" announcement of tariffs.Today's gains came as the company updated its guidance after hours on Friday and received a favorable analyst note from Stifel. As of 1:05 p.m. ET, the stock was up 14.2% even as the S&P 500 (^GSPC 0.06%) was down 1.8% at the same time. RH has upsideRH was in the bizarre position last Wednesday of holding its fourth-quarter ...

RH RH released a statement on Friday, providing details on three areas: its tariff exposure, demand trend quarter-to-date and free cash flow guidance, according to Telsey Advisory Group.The RH Analyst: Analyst Cristina Fernández maintained an Outperform rating and price target of $280.The RH Thesis: The company significantly reduced its exposure to China in recent years by sourcing from Vietnam instead and has plans to increase its U.S. exposure, Fernández said in the note.Check out other analyst stock rati ...

RH (NYSE: RH ) is, at its core, a high-end furniture and lifestyle company, but really, it’s much more than that. It sells well-crafted, heavy, expensive things for people who want their homes to feel like they belong in an architectural magazine. RH is what happensThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap ...

Company Overview - Luxury furniture company RH has seen its shares drop over 60% year to date, largely due to external factors such as tariff announcements and market volatility [1][2] - The company is currently facing challenges in a tough housing market, described as the worst in almost 50 years, which is expected to continue impacting operations [2] Market Conditions - The home furnishing market experienced a surge in demand during COVID-19, but rising interest rates have led to decreased home movement and remodeling activities, negatively affecting furniture sales [3] - The company is navigating a higher-risk environment due to tariffs, market volatility, and inflation [2] Expansion Strategy - RH is aggressively expanding in Europe, with existing galleries in England, Germany, Spain, and Belgium, and plans to open new locations in London and Paris [4] - The company invests heavily in its gallery locations, which are often in prestigious areas and designed to make a statement [5] Financial Performance - In the latest fiscal fourth quarter, RH reported a nearly 10% increase in revenue to $812 million, with adjusted EPS more than doubling to $1.58, although these figures missed analyst expectations [8] - Gross margins improved by 120 basis points to 44.7%, but SG&A expenses rose 14%, accounting for 36% of sales [8] Inventory and Production - Merchandise inventories increased by 35% to $1 billion, raising concerns as inventory growth outpaced sales growth, although the company views this as a strategic advantage in light of tariffs [9] - RH aims to have 14% of its total production sourced from the U.S. by year-end to mitigate tariff impacts [7] Valuation and Risks - The company trades at a forward P/E ratio of 14 times current fiscal year estimates, which is considered inexpensive given expected revenue growth [10] - However, potential tariff impacts and economic downturns could pressure earnings, especially given the company's existing leverage of $2.6 billion and negative free cash flow last year [6][11][12]

As President Trump announces the latest round of trade tariffs on the so-called “Liberation Day” of the U.S. economy, some traders may be surprised to see longtime favorites fall from grace. Yet this reaction aligns with a market gripped by extreme uncertainty. One retail name, in particular, is bearing the brunt—creating a different kind of opportunity. This isn’t a “buy the dip” moment; in current conditions, that would resemble catching a falling knife. Case in point: shares of RH NYSE: RH plunged nearly ...

The stock market is taking a hit today. Most sectors are in the red. The S&P 500 (^GSPC -3.58%) shed more than 4% by late morning.But shares of luxury home furnishings company RH (RH -39.90%) are getting crushed. The company reported fourth-quarter earnings last night, but that's not the only thing driving the sell-off.RH stock was down an astounding 44.1% as of 10:43 a.m. ET. Here's why.First housing, now tariffsRH reported decent fourth-quarter results, with revenue increasing 10% and continued strong dem ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

watch nowRH CEO Gary Friedman watched the luxury furniture retailer's stock tank during its earnings conference call with analysts Wednesday amid the unveiling of President Donald Trump's tariff policy.Two words summed up the situation:"Oh, sh--. OK. ... I just looked at the screen. I hadn't looked at it. It got hit when I think the tariffs came out. And everybody can see in our 10-K where we're sourcing from, so it's not a secret, and we're not trying to disguise it by putting everything in an Asia bucket. ...

RH RH reported weaker-than-expected fourth-quarter financial results after the market close on Wednesday.RH reported fourth-quarter revenue of $812.41 million, missing the consensus estimate of $829.56 million, according to Benzinga Pro. The luxury retailer reported fourth-quarter adjusted earnings of $1.58 per share, missing analyst estimates of $1.92 per share."The important work and substantial investments we’ve made over the past two years are now resulting in meaningful share gains and significant stra ...