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RH shares drop 40% amid weak housing market, tariff impacts, and high debt concerns

Market News
01 Apr 2026
Seeking Alpha
View Source
Bearish
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RH's stock has fallen about 40% due to a sluggish housing market, tariff pressures, and an over-leveraged balance sheet. The company's Q4 earnings and full-year free cash flow missed expectations, with gross margins shrinking by 180 basis points and EPS guidance falling well below consensus. Management expects growth to pick up in 2025 through international expansion, but ongoing housing market weakness poses downside risks. The analyst maintains a "Sell" rating, anticipating limited upside until shares fall below $100 and debt is significantly reduced.

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