Why RH Stock Cratered Today

RH's profits disappoint RH continues to open new locations, including expanding into Europe. It also plans to open a showroom for its bathroom brand, Waterworks, later this year. But this is illustrative of why things are difficult for the company right now. Its stores are usually quite large and are intended to showcase the luxury flavor of its offerings. This gives the business high fixed costs, and when sales slump, as they are now, so too does profitability. RH's Q1 ended on May 4. During the quarter, t ...