RH Turns to Europe for 2026 as Shares Tumble Nearly 60% in 2025

Overview

• The stock is down nearly 60% year to date, with most losses in the first quarter partly attributed to higher-than-expected tariffs under President Donald Trump.
• Despite market pressure, RH posted 8.4% revenue growth in the second quarter and improved profitability through tighter overhead control.
• CEO Gary Friedman has characterized the backdrop as the worst housing market in almost 50 years, weighing on high-end home furnishings demand.
• The company is expanding internationally with RH Paris now open and additional European galleries planned for 2026, and it expects recent openings to ramp sales next year.
• Rate cuts expected to start in December and potentially continue in 2026 could lower mortgage costs, though a near-term housing rebound remains uncertain.