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RH Stock Plummets Amid Housing Woes and Tariffs
7 Dec, 2025
Summary
- RH stock has fallen nearly 60% this year, primarily in Q1.
- The company achieved revenue growth despite a weak housing market.
- RH is actively expanding its presence in the European market.
RH, formerly Restoration Hardware, is grappling with significant stock depreciation, down almost 60% in 2025. This decline is largely attributed to a severe housing market slowdown, described by CEO Gary Friedman as the worst in nearly 50 years, and the impact of increased tariffs. Despite these headwinds, the company has demonstrated resilience, achieving an 8.4% revenue increase in the second quarter while enhancing profitability through overhead management.
The company's strategic focus includes a major push into Europe, with several new galleries already operational and more planned for 2026. RH anticipates sales growth from these new locations, including RH Paris, which opened recently. This international expansion is a critical initiative as the company navigates the domestic housing market challenges.
Looking ahead to 2026, RH's performance will be closely tied to the housing market's trajectory and the success of its European ventures. While a housing recovery remains uncertain due to consumer struggles and elevated home prices, potential interest rate decreases could influence mortgage rates. The company's international growth, however, offers a promising avenue for future development.
