RH(US:RH) CNBC Television·2025-12-13 00:30Company Strategy & Expansion - RH, formerly Restoration Hardware, pursued ambitious expansion plans under CEO Gary Freeman, aiming to become a comprehensive lifestyle brand with restaurants, hotels, yachts, and real estate developments [1][2] - RH continued aggressively expanding its core luxury homegoods business despite economic downturns, accumulating debt to finance this expansion [3] - RH scaled back its most extreme expansion plans but maintained focus on the core luxury homegoods sector [3] Market Dynamics & Challenges - RH's stock peaked in August 2021, driven by investor enthusiasm for its expansion plans [2] - Federal Reserve rate hikes in 2022 negatively impacted housing-related businesses, including RH [2] - Anticipated interest rate cuts and housing market recovery were disrupted by bond market reactions and aggressive tariffs, impacting RH's manufacturing in Southeast Asia [4] Leadership & Decision Making - CEO Gary Freeman made a significant bet on the business's ability to recover strongly once the economy improved [3]