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Restoration Hardware’s Sales Surge, but Shares Plunge Nearly 40 Percent

The luxury home furnishing retailer faces multiple headwinds.
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Restoration Hardware’s Sales Surge, but Shares Plunge Nearly 40 Percent
A view of the RH Modern Gallery ribbon-cutting ceremony and grand opening in Los Angeles on Nov. 6, 2015. Rachel Murray/Getty Images for RH
Panos Mourdoukoutas
Updated:
News Analysis

Luxury home furnishing retailer Restoration Hardware (RH) reported higher sales for the fourth quarter of 2024, driven by its product portfolio transformation, platform expansion, and premium pricing. However, the company’s shares sold off on Wall Street on April 3, along with the broader market, as it faces several headwinds ahead: weak home sales, a depressed consumer sentiment, growing competition, and rising costs due to tariffs.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”