Last night, we got this confusing set of numbers from RH, the high-end homegoods retailer that used to be known as Restoration Hardware. This story's been a bit of a roller coaster for years. Four or five years ago, CEO Gary Freeman laid out some grandio sooie generous expansion plans.He wanted to turn RH into a fun, full lifestyle brand with restaurants, hotels, yachts, and even a utopian real estate development. In Aspen, the stock soared to the mid700s at its peak in August of 2021 as its feet became fas ...

Company 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]