Where Will RH Stock Be in 3 Years?
RH (NYSE: RH) CEO Gary Friedman doesn't pull any punches when he talks about the economic climate facing his company, the high-end home furnishings retailer formerly known as Restoration Hardware. For about a year, Friedman has called out the challenges in the housing market and in the economy, pointing to a dramatic shift in consumer shopping habits and the business.
Indeed, RH posted declines in both revenue and profits in its recently released fourth-quarter earnings report. Revenue in the quarter fell 15.5% to $772 million and adjusted earnings per share were nearly chopped in half, falling from $5.66 to $2.88.
The stock slipped 3% on the report as the company also said it expected business conditions to be challenging in 2023 as well, due to weakness in the housing market, the recent banking crisis, backlog reductions, and difficult comparisons with the pandemic boom.
Source Fool.com
