RH Faces Near-Term Headwinds But Long-Term Prospects Intact as Luxury Brand Diversifies Beyond Furnishings

RH (formerly Restoration Hardware) has seen sales and profits decline as the pandemic-driven housing boom ended. The housing market slowdown has impacted home furnishings companies.
RH expects challenging conditions to continue through fiscal 2023. However, the worst of the slowdown may be behind it based on recent guidance.
RH is diversifying beyond just home furnishings into a luxury lifestyle brand, including hotels, restaurants, and experiences. This provides new avenues for growth.
RH continues to expand with new gallery openings planned in Europe and Australia. Smaller design studios targeting wealthy areas also provide opportunities.
RH repurchased $1.2 billion of its own shares last quarter. This will benefit shareholders when the housing market eventually recovers. RH looks well-positioned long term.

RH (formerly Restoration Hardware) has seen sales and profits decline as the pandemic-driven housing boom ended. The housing market slowdown has impacted home furnishings companies.
RH expects challenging conditions to continue through fiscal 2023. However, the worst of the slowdown may be behind it based on recent guidance.
RH is diversifying beyond just home furnishings into a luxury lifestyle brand, including hotels, restaurants, and experiences. This provides new avenues for growth.
RH continues to expand with new gallery openings planned in Europe and Australia. Smaller design studios targeting wealthy areas also provide opportunities.
RH repurchased $1.2 billion of its own shares last quarter. This will benefit shareholders when the housing market eventually recovers. RH looks well-positioned long term.