RH stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy RH?
RH stock fell 6.68% as it crossed below its 5-day SMA, reflecting a challenging trading environment.
The decline in RH's stock price comes amid broader market weakness, with the Nasdaq-100 down 0.67% and the S&P 500 down 0.78%. This sector rotation indicates that investors are reallocating their portfolios away from stocks like RH, which are underperforming in the current market conditions.
As the market continues to face headwinds, RH may need to reassess its strategies to regain investor confidence and stabilize its stock performance.
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Analyst Views on RH
Wall Street analysts forecast RH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RH is 203.45 USD with a low forecast of 144.00 USD and a high forecast of 283.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 195.440
Low
144.00
Averages
203.45
High
283.00
Current: 195.440
Low
144.00
Averages
203.45
High
283.00
About RH
RH is a retailer and luxury lifestyle brand operating primarily in the home furnishings market. The Company offers collections through its retail galleries, sourcebooks, and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com. The Company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby, child and teen furnishings. Its segments include RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks segments include all sales channels accessed by its customers, including sales through retail locations and outlets, including hospitality, websites, sourcebooks, and the trade and contract channels. The Real Estate segment represents operations associated with certain of its equity method investments and consolidated variable interest entities that are non-wholly owned subsidiaries and have operations that are not directly related to its segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Greatmark Increases RH Stake to 2.07% Amid Market Recovery Signs
- Share Increase: Greatmark Investment Partners increased its RH shares by 16,560 during Q4 2025, with an estimated trade value of $2.83 million, indicating confidence in the company's growth potential.
- Asset Management Proportion: Following this acquisition, RH now represents 2.07% of Greatmark's AUM, highlighting its significance in the investment portfolio despite not being among the top five holdings.
- Market Performance: As of January 26, 2026, RH shares were priced at $219.09, down 46.7% over the past year, yet the stock rebounded by 13.5% at the start of 2026, reflecting growing market recognition of the company's prospects.
- Industry Outlook: Despite cost pressures from tariffs, RH achieved a 9% revenue increase in Q3, demonstrating resilience in a challenging market, with signs of a housing recovery likely to further boost stock prices.
See More
RH Reports $884 Million Q3 Revenue Amid Market Challenges
- Revenue Growth: RH achieved $884 million in revenue for Q3, marking a 9% increase despite facing the worst housing market in nearly 50 years and tariff pressures, demonstrating resilience and profitability in adversity.
- Market Expansion: The company launched its brand in Europe and opened lavish galleries in cities like Paris, London, and Milan, significantly increasing its addressable market and expected to drive future revenue growth.
- Management Strategy: CEO Gary Friedman successfully implemented a membership model that initially faced backlash but ultimately locked in customers and boosted sales, showcasing the management's foresight and adaptability.
- Share Buyback Program: RH repurchased approximately 25% of its outstanding shares in 2023, aiming to enhance earnings per share and lay the groundwork for recovery, with profit margins expected to rebound to as high as 20% in a healthy housing market.
See More
RH Reports $884 Million Revenue in Q3, Continues Market Share Growth
- Revenue Growth: RH reported $884 million in revenue for Q3, a 9% increase year-over-year, demonstrating strong profitability despite facing the worst housing market in nearly 50 years and tariff pressures.
- Market Expansion: The company has launched its brand in Europe, opening lavish galleries in cities like Paris, London, and Milan, significantly increasing its addressable market and positioning for future growth.
- Successful Membership Model: RH pivoted to a membership model in 2016, charging an annual fee of $200, which initially faced challenges but ultimately locked in customers and boosted sales, showcasing the management's strategic foresight.
- Stock Buyback Strategy: In 2023, the company repurchased approximately 25% of its outstanding shares, aiming to enhance earnings per share, and with a potential recovery in the housing market, RH is positioned for long-term profit growth.
See More
RH Reports $884 Million Q3 Revenue Amid Housing Market Challenges
- Revenue Growth: Despite facing the worst housing market in nearly 50 years, RH reported $884 million in revenue for Q3, reflecting a 9% increase and demonstrating resilience and continued market share growth in the home furnishings sector.
- European Expansion: By launching lavish galleries in cities like Paris, London, and Milan, RH significantly increases its addressable market, which is expected to drive future revenue growth, particularly as signs of recovery emerge in the housing market.
- Management Acumen: CEO Gary Friedman has effectively locked in customers through a membership model and share buybacks, repurchasing about 50% of outstanding shares in 2017 and approximately 25% in 2023, setting the stage for future earnings growth and shareholder value enhancement.
- Future Growth Potential: With a current market cap of $4.3 billion, RH could achieve a ten-bagger by doubling its annual revenue to $8 billion and restoring profit margins to nearly 20%, showcasing the high-margin potential of its luxury business model over the next five to ten years.
See More
Home Furnishings Stocks Decline, Arhaus Down 5%
- Market Weakness: Home furnishings stocks collectively fell by approximately 2.5%, indicating a decline in market confidence that could impact future investment decisions.
- Arhaus Leads Decline: Arhaus shares dropped by about 5%, reflecting weak consumer demand and increased market competition, which may lead to a decrease in the company's short-term sales.
- RH Struggles: RH's stock fell by approximately 4.9%, indicating challenges in the high-end home market that could affect its profitability and market share.
- Uncertain Industry Outlook: Other sectors like paper and forest products also performed poorly, suggesting that the overall economic environment may exert pressure on the home improvement industry, necessitating close monitoring of future market dynamics.
See More
U.S. Retail Sales Up 3.1% in November, Benefiting Amazon and Others
- Retail Sales Growth: U.S. retail sales increased by 0.6% month-over-month and 3.1% year-over-year in November, indicating robust consumer spending that is likely to further stimulate investment and expansion in the retail sector.
- E-commerce Performance: Amazon's nonstore retail sales rose by 7.2% in November, reinforcing its position as a leader in e-commerce, which is expected to enhance its market share and profitability, particularly driven by growth in cloud computing and advertising.
- Sports Goods Sales Recovery: Sporting goods stores saw a 7.8% sales increase, benefiting companies like Nike and Dick's Sporting Goods, with insider buying by Nike's CEO and board members reflecting confidence in the company's recovery in North America and Europe.
- Beauty Industry Outlook: e.l.f. Beauty is poised for growth as health and personal care store sales rose 6.7% year-over-year, with its market share expanding and the successful acquisition of Rhode expected to contribute to long-term growth potential.
See More
Greatmark Increases RH Stake to 2.07% Amid Market Recovery Signs
- Share Increase: Greatmark Investment Partners increased its RH shares by 16,560 during Q4 2025, with an estimated trade value of $2.83 million, indicating confidence in the company's growth potential.
- Asset Management Proportion: Following this acquisition, RH now represents 2.07% of Greatmark's AUM, highlighting its significance in the investment portfolio despite not being among the top five holdings.
- Market Performance: As of January 26, 2026, RH shares were priced at $219.09, down 46.7% over the past year, yet the stock rebounded by 13.5% at the start of 2026, reflecting growing market recognition of the company's prospects.
- Industry Outlook: Despite cost pressures from tariffs, RH achieved a 9% revenue increase in Q3, demonstrating resilience in a challenging market, with signs of a housing recovery likely to further boost stock prices.
See More
RH Reports $884 Million Q3 Revenue Amid Market Challenges
- Revenue Growth: RH achieved $884 million in revenue for Q3, marking a 9% increase despite facing the worst housing market in nearly 50 years and tariff pressures, demonstrating resilience and profitability in adversity.
- Market Expansion: The company launched its brand in Europe and opened lavish galleries in cities like Paris, London, and Milan, significantly increasing its addressable market and expected to drive future revenue growth.
- Management Strategy: CEO Gary Friedman successfully implemented a membership model that initially faced backlash but ultimately locked in customers and boosted sales, showcasing the management's foresight and adaptability.
- Share Buyback Program: RH repurchased approximately 25% of its outstanding shares in 2023, aiming to enhance earnings per share and lay the groundwork for recovery, with profit margins expected to rebound to as high as 20% in a healthy housing market.
See More
RH Reports $884 Million Revenue in Q3, Continues Market Share Growth
- Revenue Growth: RH reported $884 million in revenue for Q3, a 9% increase year-over-year, demonstrating strong profitability despite facing the worst housing market in nearly 50 years and tariff pressures.
- Market Expansion: The company has launched its brand in Europe, opening lavish galleries in cities like Paris, London, and Milan, significantly increasing its addressable market and positioning for future growth.
- Successful Membership Model: RH pivoted to a membership model in 2016, charging an annual fee of $200, which initially faced challenges but ultimately locked in customers and boosted sales, showcasing the management's strategic foresight.
- Stock Buyback Strategy: In 2023, the company repurchased approximately 25% of its outstanding shares, aiming to enhance earnings per share, and with a potential recovery in the housing market, RH is positioned for long-term profit growth.
See More
RH Reports $884 Million Q3 Revenue Amid Housing Market Challenges
- Revenue Growth: Despite facing the worst housing market in nearly 50 years, RH reported $884 million in revenue for Q3, reflecting a 9% increase and demonstrating resilience and continued market share growth in the home furnishings sector.
- European Expansion: By launching lavish galleries in cities like Paris, London, and Milan, RH significantly increases its addressable market, which is expected to drive future revenue growth, particularly as signs of recovery emerge in the housing market.
- Management Acumen: CEO Gary Friedman has effectively locked in customers through a membership model and share buybacks, repurchasing about 50% of outstanding shares in 2017 and approximately 25% in 2023, setting the stage for future earnings growth and shareholder value enhancement.
- Future Growth Potential: With a current market cap of $4.3 billion, RH could achieve a ten-bagger by doubling its annual revenue to $8 billion and restoring profit margins to nearly 20%, showcasing the high-margin potential of its luxury business model over the next five to ten years.
See More
Home Furnishings Stocks Decline, Arhaus Down 5%
- Market Weakness: Home furnishings stocks collectively fell by approximately 2.5%, indicating a decline in market confidence that could impact future investment decisions.
- Arhaus Leads Decline: Arhaus shares dropped by about 5%, reflecting weak consumer demand and increased market competition, which may lead to a decrease in the company's short-term sales.
- RH Struggles: RH's stock fell by approximately 4.9%, indicating challenges in the high-end home market that could affect its profitability and market share.
- Uncertain Industry Outlook: Other sectors like paper and forest products also performed poorly, suggesting that the overall economic environment may exert pressure on the home improvement industry, necessitating close monitoring of future market dynamics.
See More
U.S. Retail Sales Up 3.1% in November, Benefiting Amazon and Others
- Retail Sales Growth: U.S. retail sales increased by 0.6% month-over-month and 3.1% year-over-year in November, indicating robust consumer spending that is likely to further stimulate investment and expansion in the retail sector.
- E-commerce Performance: Amazon's nonstore retail sales rose by 7.2% in November, reinforcing its position as a leader in e-commerce, which is expected to enhance its market share and profitability, particularly driven by growth in cloud computing and advertising.
- Sports Goods Sales Recovery: Sporting goods stores saw a 7.8% sales increase, benefiting companies like Nike and Dick's Sporting Goods, with insider buying by Nike's CEO and board members reflecting confidence in the company's recovery in North America and Europe.
- Beauty Industry Outlook: e.l.f. Beauty is poised for growth as health and personal care store sales rose 6.7% year-over-year, with its market share expanding and the successful acquisition of Rhode expected to contribute to long-term growth potential.
See More
