RH (RH)

Shares of RH (RH) dropped by 14.00% from $281.40 to $242.01 in the trading on Friday, December 8, 2023. The reason why RH is down today is due to the release of the company's disappointing third-quarter 2023 financial results.

• Earnings and Revenue Miss: RH reported an earnings per share of -42 cents, significantly below the expected 95 cents per share. Additionally, the company's revenue of $751.23 million fell short of the anticipated $756.74 million.
• Analyst Reactions: Telsey Advisory Group's Cristina Fernández maintained a Market Perform rating but lowered the price target from $325 to $285. She attributed RH's challenges to the tough housing market and a lack of new products and marketing investments. In addition, Morgan Stanley's Simeon Gutman reiterated an Equal Weight rating with a reduced price target of $290. He noted RH's lowered guidance and delayed revenue recovery. Moreover, KeyBanc Capital Markets' Bradley Thomas maintained a Sector Weight rating and cited hope in RH's expectation of improved demand trends in the first half of 2024.

RH's shares fell down 15.63% today following its Q2 earnings results. In Q2, the firm beat earnings but cautioned about future challenges, leading to a 12% stock drop. They expect a tough luxury housing market in 2023, with Q3 sales below expectations.

https://www.fool.com/investing/2023/09/08/why-rh-stock-is-down-today/