Why RH Stock Crumbled Friday
Shares of RH (NYSE: RH) -- formerly known as Restoration Hardware -- are getting crushed today after the luxury home furnishings company came up short on its third-quarter report. The company reported an adjusted quarterly loss and had some stunning comments in its shareholder letter.
That led investors to dump the stock Friday morning. As of 11:05 a.m. ET, RH shares were down by 14%. The stock has now dropped by more than 33% over the last three months.
RH reported a drop in sales of about 14% year over year in the quarterly period. It led to an adjusted loss on the bottom line that surprised investors. In its letter to shareholders, the company said the rise in interest rates has left most existing homeowners with low enough mortgage rates to not want to move.
Source Fool.com
