RH Faces Investigation as Stock Plummets Over 40% Following Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
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Source: PRnewswire
- Earnings Miss: On April 2, 2025, RH reported fourth-quarter and fiscal year 2024 earnings of $1.58 per share on $812 million in revenue, falling short of prior guidance of $1.92 EPS and $830 million revenue, leading to a stock price drop of over 40% following the announcement.
- Legal Investigation: Robbins Geller law firm is investigating potential violations of U.S. federal securities laws by RH, focusing on whether executives made false or misleading statements, which could exacerbate the company's credibility issues among investors.
- Investor Losses: The disappointing earnings report has left RH investors facing significant losses, prompting the law firm to seek information from affected investors to support the investigation, potentially leading to future lawsuits and liability claims.
- Market Reaction: The sharp decline in RH's stock price reflects market concerns over its financial health, which may impact its future financing capabilities and brand image, further challenging its competitive position in the high-end home furnishings market.
RH
$182.37+Infinity%1D
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 274.30 USD with a low forecast of 200.00 USD and a high forecast of 385.00 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
7 Buy
5 Hold
1 Sell
Moderate Buy
Current: 179.490
Low
200.00
Averages
274.30
High
385.00
Current: 179.490
Low
200.00
Averages
274.30
High
385.00
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.
