RH, together with its subsidiaries, operates as a retailer in the home furnishings and operates under RH Galleries and RH brand names in the District of Columbia and Canada, as well as Waterworks showrooms throughout the United States and the United Kingdom. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com, and Source Books, a series of catalogs. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in RH (Symbol: RH), where a total of 17,950 contracts have traded so far, representing approximately 1.8 million underlying shares. That amounts to about 153.4% of RH's average daily trading volume over the past month of 1.2 million shares. Particularly high volume was seen for the $340 strike put option expiring August 15, 2025, with 6,710 contracts trading so far today, representing approximately 671,000 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $340 strike highlighted in orange:
Comerica, Inc. (Symbol: CMA) options are showing a volume of 25,802 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 143.9% of CMA's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $75 strike call option expiring September 19, 2025, with 15,000 contracts trading so far today, representing approximately 1.5 million underlying shares of CMA. Below is a chart showing CMA's trailing twelve month trading history, with the $75 strike highlighted in orange:
And Spotify Technology SA (Symbol: SPOT) saw options trading volume of 23,504 contracts, representing approximately 2.4 million underlying shares or approximately 134.4% of SPOT's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $700 strike put option expiring July 18, 2025, with 2,479 contracts trading so far today, representing approximately 247,900 underlying shares of SPOT. Below is a chart showing SPOT's trailing twelve month trading history, with the $700 strike highlighted in orange:
For the various different available expirations for RH options, CMA options, or SPOT options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Friday Option Activity: RH, CMA, SPOT

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Bread Financial Holdings Inc (Symbol: BFH), where a total of 10,213 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 136.1% of BFH's average daily trading volume over the past month of 750,245 shares. Especially high volume was seen for the $55 strike put option expiring August 15, 2025, with 5,000 contracts trading so far today, representing approximately 500,000 underlying shares of BFH. Below is a chart showing BFH's trailing twelve month trading history, with the $55 strike highlighted in orange:
RH (Symbol: RH) options are showing a volume of 21,351 contracts thus far today. That number of contracts represents approximately 2.1 million underlying shares, working out to a sizeable 129.2% of RH's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $190 strike call option expiring July 18, 2025, with 1,941 contracts trading so far today, representing approximately 194,100 underlying shares of RH. Below is a chart showing RH's trailing twelve month trading history, with the $190 strike highlighted in orange:
And Ultragenyx Pharmaceutical Inc (Symbol: RARE) saw options trading volume of 15,253 contracts, representing approximately 1.5 million underlying shares or approximately 126.4% of RARE's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $25 strike put option expiring August 15, 2025, with 3,287 contracts trading so far today, representing approximately 328,700 underlying shares of RARE. Below is a chart showing RARE's trailing twelve month trading history, with the $25 strike highlighted in orange:
For the various different available expirations for BFH options, RH options, or RARE options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Thursday Option Activity: BFH, RH, RARE

Buying and holding quality stocks is one of the most efficient ways to build wealth. Three Motley Fool contributors believe now is a great time to consider buying shares of Alibaba (NYSE: BABA), Lyft (NASDAQ: LYFT), and RH (NYSE: RH) (formerly Restoration Hardware).
What's more, Wall Street analysts also see attractive upsides for these stocks based on their average price targets. Here's why these stocks are poised to soar.
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Alibaba stock: 39% upside
John Ballard (Alibaba): Alibaba is one of the leading e-commerce and cloud service companies in the world. Intensifying competition in China's e-commerce market and regulatory uncertainty have weighed on the stock price over the past few years. But this could also spell significant upside for investors from here as the company continues to see strong demand in its cloud business.
The average analyst's 12-month price target of $162 implies a 39% upside from the current share price. The stock trades at a modest forward price-to-earnings multiple of 11.7, indicating that investors are undervaluing its expected growth.
Alibaba, like its U.S. counterpart Amazon, is a very tech-centered business. Investments in artificial intelligence (AI), where Alibaba Cloud offers data intelligence services and other AI services for other companies, are driving accelerating growth in its cloud business, with revenue up 18% year over year in the most recent quarter.
Alibaba also uses AI in its e-commerce business to understand user behavior, make personalized product suggestions, and manage supply chains. This makes it a formidable competitor, despite its recently weak revenue growth. However, consumer spending is back on the rise in its Taobao and Tmall marketplaces.
Overall, Alibaba's revenue growth has accelerated sharply in recent quarters, and it's also reporting improving margins. Analysts expect the company's earnings to grow at an annualized rate of 16% over the next several years. Given the low earnings multiple the stock trades at today, Alibaba could not only reach Wall Street's average 12-month price target but potentially double in value within the next three to five years.
Lyft stock: 80% upside
Jeremy Bowman (Lyft): Lyft may be a forgotten stock for most investors, and it's easy to see why. Shares of the No. 2 ridesharing company in the U.S. are down nearly 80% from where they stood at its 2019 IPO, as it entered the market overvalued and struggled during the pandemic. However, while it plays second fiddle to Uber, Lyft has innovated with new features, recently made a smart new acquisition, and is building momentum.
According to one Wall Street analyst, the stock has an 80% upside currently: Last month, Ivan Feinseth of Tigress Financial gave it a buy rating and boosted his 12-month price target on the stock by $2 to $28.
Lyft is in a much stronger position than it was a couple of years ago as the company is both delivering solid growth and has turned profitable.
In the first quarter, revenue rose 14% to $1.5 billion while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly doubled from $59.4 million to $106.5 million.
It also posted a small profit of $2.6 million on a generally accepted accounting principles (GAAP) basis. Among the new products driving growth are price lock, which allows customers to lock in a price for a regular commute, Women+, which allows women riders and drivers to match with each other, and Lyft Silver, a service designed to fit the needs of seniors.
Lyft also paved the way for its expansion into Europe by acquiring Freenow, a mobility company that's active in nine countries.
Overall, Lyft looks poised to continue its double-digit percentage growth and ramp up its profitability, and the stock looks cheap at a price-to-sales ratio of around 1.1.
RH stock: Up to 137% upside
Jennifer Saibil (RH): RH stock has been driven down by macroeconomic pressures, but the business is bouncing back, and the stock should follow.
The company is a luxury furniture retailer that operates around 100 galleries in selected affluent communities, mostly in the U.S., though it has recently been expanding into Europe. It also has robust digital channels. However, its bigger ambition is to grow itself into a diversified global luxury brand, and it already operates several upscale restaurants and experiences, including rentable jets and yachts.
While its target demographics are generally more resilient than the mass market, RH hasn't been immune to inflation and economic slowdowns. But even amid sagging sales in recent years, it has continued to launch new merchandise lines and open new galleries. Its next, in Paris, is set to open shortly on the Champs-Élysées.
Meanwhile, performance at its U.K. gallery has been fantastic, with sales up 47% over last year in the 2025 fiscal first quarter (which ended May 3) and online demand up 44%. Two German locations that have been open for at least a year demonstrated a 60% increase in demand in fiscal Q1, and RH is experiencing accelerating demand in its locations in Brussels and Madrid.
In sum, the retailer seems to have turned a corner. It has reported year-over-year revenue increases for the past four quarters, including double-digit percentage increases for the past two quarters. The fiscal first quarter was phenomenal, with a 12% sales increase and an adjusted operating margin of 7%.
Yet RH stock is 75% off its peak. The average target price on Wall Street is 24% higher than today's price, and one analyst expects it to jump 137% higher over the next 12 to 18 months.
Trading at the cheap valuation of 13 times forward 1-year earnings, RH stock could be a profitable pick right now for risk-tolerant investors.
Should you invest $1,000 in Alibaba Group right now?
Before you buy stock in Alibaba Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alibaba Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $950,198!*
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Amazon and RH. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Uber Technologies. The Motley Fool recommends Alibaba Group, Lyft, and RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Brilliant Stocks That Could Soar by 39% to 80%, According to Wall Street

Below is Validea's guru fundamental report for RH (RH). Of the 22 guru strategies we follow, RH rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
RH (RH) is a mid-cap growth stock in the Furniture & Fixtures industry. The rating using this strategy is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of RH
More Information on Partha Mohanram
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

RH Quantitative Stock Analysis

Investing in turnaround stocks can be difficult, often doesn't work out, and sometimes the stock has the potential to go to zero. But when they do work out, they can generate absolutely massive gains.
One interesting situation out there is RH (NYSE: RH), the furniture giant that is transforming its business, even as the housing market remains practically frozen. After shares boomed to $744 at the height of the 2021 pandemic housing boom, they've since crashed by about 75%. Debt has gone up, and the housing market has yet to bounce back.
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Still, can RH pull off a turnaround, leading to a multibagger? The answer is yes...but with a big caveat.
RH's bold and daring vision
In 2017, the company rebranded as RH, dropping its former name, Restoration Hardware. CEO Gary Friedman's new brand vision included selling more expensive furniture to fewer, wealthier consumers, while making RH stores into large-format, "design galleries." Management also set out to extend its newfound luxury brand to boutique hotels, restaurants, and travel services, as well as geographically into Europe.
At first, the brand elevation went very well. As you can see below, RH's revenue grew, while operating margins expanded from about 10% in 2015 to over 24% during the pandemic.
RH Revenue (TTM) data by YCharts. TTM = trailing 12 months.
However, as you can also see, margins have compressed back down to just under 10% today as revenue has declined, leading to a deleveraging effect. So, while the strategy shift to higher-priced, higher-margin furniture worked to an extent, RH is still not immune to the ups and down of the housing cycle.
But a big bet has put the company somewhat at risk
In 2022, interest rates and inflation went up, along with mortgage rates. That froze the market, as homeowners with existing low-rate mortgages were unwilling to sell, while high rates also dampened remodeling.
Amid the downturn, management decided to take on debt to repurchase $1 billion in stock in 2022 and another $1.25 billion or so in 2023. That big buyback helped retire a little more than 25% of shares outstanding at what management thought were bargain prices.
The problem with the large buyback is that RH also loaded up its balance sheet with debt, which now totals about $2.55 billion, against just $46 million in cash. Although the company also has an additional $367 million in borrowing capacity under its credit facility, the balance sheet could become a problem if the housing market doesn't recover.
So far, the downturn has lasted longer than management thought. As a result, shares now trade well below the prices at which management made the repurchases.
"Worst housing market in 50 years"
On the recent conference call with analysts, CEO Gary Friedman called the housing market the worst in 50 years, citing this amazing statistic:
In 1978, there were 4.09 million existing homes sold when the U.S. had a population of 223 million. Contrast that to 2024, were 4.06 million existing homes sold with a population of 341 million. And it illuminates just how depressed the housing market has been this year.
Later in the call, Friedman admitted that he had wished he had waited longer to repurchase stock, as the length of the downturn had surprised him despite his decades of experience:
I've been doing this for 40 years now. I've never been in a third year of a down housing market. I think every one of them have been 12 to 18 months.
Friedman also admitted that the company is paying more in interest than he'd like and that it could engage in sales of some of its real estate in sale-and-leaseback activities to generate short-term cash. The fact that management feels the need to potentially sell assets is probably not a great sign.
But there's hope for multibagger potential
Management may have a bit of egg on its face regarding the premature buyback, but there are also some hopeful signs. For one, last quarter's revenue was up 12% relative to the year-ago quarter, albeit off low levels. While net profits were close to zero, that was due to a ramp in selling, general, and administrative costs, which seems like it could be dialed back if needed.
Looking ahead, management sees revenue growth of 10% to 13% this year, with adjusted (non-generally accepted accounting principles, or non-GAAP) operating margins of 14% to 15%, and free cash flow of between $250 million and $300 million.
That would be a great first step in RH's recovery, with reassuring profitability even as the company continues to invest in seven new design galleries this year, including in Paris, France, and six other U.S. locations.
Still, at an enterprise value of about $5.1 billion, it will take much more than that to see a true multibagger turnaround. Furthermore, the company's debt load still makes it vulnerable to a prolonged housing freeze. And full-year guidance already anticipates a pickup in activity and profitability in the second half -- which may not materialize.
So, at a big-picture level, RH could see massive upside if the housing market recovers, and we are past due for a recovery. However, the change in the interest rate environment, tariffs, and broader economic concerns have made this downturn unique. If the downturn is a more prolonged, secular phenomenon, things could get dicey.
For the growth-oriented investor, RH is a high-upside, levered bet on a housing recovery. But it comes with substantial risks. Those willing to make that bet should take care to make the allocation relatively small in their portfolios.
Should you invest $1,000 in RH right now?
Before you buy stock in RH, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RH wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*
Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
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*Stock Advisor returns as of June 9, 2025
Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Is RH's Big Turnaround Beginning to Happen?

Sometimes Wall Street can be very slow to understand the real value of a business. The competitive advantage and growth strategy of a company can be misunderstood, leading to depressed valuations and underperforming share prices.
Investors who can see through the stock volatility and focus on the key signals that set a company up for long-term success can be rewarded with outsize gains over time.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Here are two stocks of market-leading brands that are trading well off their previous highs and could be significantly undervalued.
1. RH
RH (NYSE: RH), the company formerly known as Restoration Hardware, emerged as a prominent luxury furniture brand over the past decade. In the past year, however, the business struggled with several macroeconomic headwinds, such as a weak housing market and uncertainties over tariffs.
Questions about near-term demand have sent the stock down 52% this year, but this is a great buying opportunity for a long-term investor.
RH's trailing-12-month revenue of $3.3 billion is below its previous peak of $3.9 billion a few years ago, but it just reported a strong first quarter. Revenue grew 12% year over year in the quarter, outperforming the rest of the industry.
RH is expanding its addressable market to hospitality offerings in its design galleries, such as restaurants and wine bars, which has elevated the shopping experience to something that cannot be replicated by e-commerce competitors.
Moreover, the company entered the $200 billion North American hotel industry with RH Guesthouses, and it offers much more, including private jets and luxury yachts for charter in the Caribbean and Mediterranean. All this creates an ecosystem of services meant to showcase the RH lifestyle and raise the brand to something more than just furniture products.
It's for these reasons that RH has a history of reporting much higher margins than the average furniture store. Its adjusted operating margin was 7% in the first quarter, below its previous 10-year average of 12%. It should return to those higher margins in a strong housing market, and this is not reflected in the stock's valuation.
Over the last 10 years, the stock traded at a price-to-sales multiple ranging from 0.48 to 6.59. The average was just over 2 times sales, with the stock currently trading at a multiple of 1.16. Investors who buy shares at these lower discounted prices and hold until the housing market is fully recovered should be well rewarded.
2. Roku
Roku (NASDAQ: ROKU) is another beaten-down stock whose long-term prospects are not fully reflected by its current share price. The stock is trading about 32% below where it was five years ago, but the platform continues to show double-digit growth in revenue that sets up a potential bull run.
Roku is a leading connected-TV streaming platform that is benefiting from a growing digital advertising market, which is how the company generates most of its revenue. It also gets a small percentage of revenue from selling its streaming devices, but that is a low-margin business.
Advertising can be cyclical with the broader economy, and that's what caused the stock to collapse a few years ago. But Wall Street is missing the real value of the company's platform. It is fundamentally a TV operating system that has achieved tremendous viewership in the U.S. through its affordable Roku TVs and streaming devices.
The company reaches half of U.S. broadband households. This large viewership led to 35.8 billion total streaming hours on its platform in the first quarter, representing a year-over-year increase of 16%. This opens up a lot of opportunities for growth over the long term, as evidenced by a recent deal with Amazon.
Roku just announced an integration with Amazon Ads, which could have a significant impact on Roku's advertising revenue. This partnership will allow advertisers to access 80% of U.S. connected TV households through Amazon's demand-side platform, sending more business to Roku.
The streamer's revenue grew 16% year over year in the first quarter, indicating more advertising by big brands that want exposure to its large user base. This reach provides tremendous negotiating power with content providers, retail brands, and other media companies that would like access to Roku's audience.
The stock is priced at a 2.74 price-to-sales multiple, which is at the low end of its past trading range. As Roku continues attract more advertising investment, investors who patiently hold the stock will be rewarded.
Should you invest $1,000 in RH right now?
Before you buy stock in RH, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RH wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $891,722!*
Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

2 Top Stocks to Buy Now at Big Discounts and Hold for Years

Below is Validea's guru fundamental report for RH (RH). Of the 22 guru strategies we follow, RH rates highest using our Acquirer's Multiple Investor model based on the published strategy of Tobias Carlisle. This deep value model looks for inexpensive stocks that could be potential takeover targets.
RH (RH) is a mid-cap growth stock in the Furniture & Fixtures industry. The rating using this strategy is 63% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR:
PASS
QUALITY:
PASS
ACQUIRER'S MULTIPLE
FAIL
Detailed Analysis of RH
RH Guru Analysis
RH Fundamental Analysis
More Information on Tobias Carlisle
Tobias Carlisle Portfolio
About Tobias Carlisle: Tobias Carlisle is a widely recognized expert on deep value investing. He is the author of "The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market" and the founder of Acquirer's Funds. He is also the author of "Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations" and co-author of Quantitative Value: "A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors" Tobias is originally from Australia, where he worked an an analyst at an activist hedge fund and was a lawyer specializing in mergers and acquisitions.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Motley Fool Analysts Check In on Chime Financial, RH, Adobe, and More

Note: RH FY’24 ended on February 1, 2025
RH stock, the luxury home furnishings retailer formerly known as Restoration Hardware, spiked over 15% in extended trading Thursday after the company reaffirmed its full-year outlook and outlined measures to mitigate rising tariffs. RH expects revenue growth of 10% to 13% for FY 2025, a signal of resilience despite macroeconomic headwinds. However, the enthusiasm quickly cooled—shares slipped 1.18% in after-hours trading to $178.84 following a mixed Q1 earnings report that beat on EPS but missed sales estimates. For investors seeking growth with lower volatility, the Trefis High Quality Portfolio has outperformed the S&P 500 with 91% returns since inception, providing a smoother ride through turbulence.
RH drives revenue through a blend of high-touch showrooms and lavishly curated catalogs, both in print and online. Its product categories span furniture, lighting, textiles, bathware, garden, and even teen furnishings—targeting affluent consumers with design-forward aesthetics and premium pricing.
Photo by leemelina08 on Pixabay
Q1 2025 Snapshot: Profit Returns, But So Do Headwinds
The company reported net income of $8.04 million ($0.40 per share) in Q1, reversing a loss of $3.63 million ($0.20 per share) a year ago. Revenue rose 12% year-over-year to $814 million, just shy of analyst expectations. Adjusted operating margin reached 7%, with EBITDA margin at 13.1%. Still, RH faces stiff challenges: a sluggish housing market—described by CEO Gary Friedman as the “toughest in almost 50 years”—and mounting tariff pressures threaten future earnings.
Tariffs Bite, Expansion Presses On
The company outlined aggressive supply chain adjustments: RH is shifting production away from China, with imports from the country expected to fall from 16% in Q1 to just 2% by Q4. The company plans to manufacture 52% of its upholstered goods in the U.S. and 21% in Italy by year-end. However, these changes come at a cost—tariffs are projected to hit Q2 revenue by roughly six percentage points.
RH has also postponed the launch of a new concept to spring 2026 amid tariff uncertainty. Despite these hurdles, it’s charging ahead with global expansion, with a flagship store set to open on Paris’ Champs Élysées in September. The company plans to open 7–9 new galleries annually, targeting major cities like London and Milan.
History Suggests Caution
Investors should be mindful of RH’s history during downturns. The stock plummeted 71% during the 2022 inflation shock—nearly triple the S&P 500’s 25% decline—and 68% in the 2020 pandemic crash. While it rebounded swiftly post-COVID, it has yet to reclaim its 2021 highs. RH’s high sensitivity to macroeconomic shocks raises doubts about its durability in a potential recession. Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
Valuation Looks Stretched
At roughly 45× forward earnings, RH trades at a steep premium to both its five-year average (38×) and the S&P 500 (26×). Its price-to-free-cash-flow ratio is particularly alarming (>200x, compared to 21x for the S&P index), suggesting investor expectations may be outpacing fundamentals.
Following a post-pandemic demand boom in FY 2020, RH faced a volatile stretch from FY 2021 through FY 2023 as mortgage rates, inflation, and housing softness pressured results. FY 2024 offered a measure of recovery, but investor sentiment remains fragile. Tariffs and housing weakness continue to weigh on the outlook, despite operational improvements.
Bottom Line
RH is executing a bold pivot—restructuring its supply chain, expanding internationally, and improving margins. Yet the stock remains volatile and richly valued, with a track record of sharp drawdowns in turbulent times. Trefis collaborates with Empirical Asset Management—a Boston area wealth manager—whose asset allocation strategies yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Empirical has incorporated the Trefis HQ Portfolio into its asset allocation framework to provide clients with better returns and less risk compared to the benchmark index—a less turbulent ride, as shown in HQ Portfolio performance metrics.
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RH’s Profit Returns But Headwinds Persist

The Adasina Social Justice All Cap Global ETF is seeing unusually high volume in afternoon trading Friday, with over 477,000 shares traded versus three month average volume of about 33,000. Shares of JSTC were down about 1.1% on the day.
Components of that ETF with the highest volume on Friday were Nvidia, trading off about 1.4% with over 101.6 million shares changing hands so far this session, and Gamestop, up about 2.5% on volume of over 45.8 million shares. RH is the component faring the best Friday, up by about 9.2% on the day, while Pros Holdings is lagging other components of the Adasina Social Justice All Cap Global ETF, trading lower by about 8.2%.
VIDEO: Friday's ETF with Unusual Volume: JSTC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.