Why RH Stock Plummeted 22% in April

RH (NYSE: RH) stock fell 22% in April, according to data provided by S&P Global Market Intelligence. It announced earnings, including a major miss on earnings per share (EPS), on the day of President Donald Trump's new tariff program announcement, and the combined blow led to a massive plunge in the stock price.RH has been hit hard in the high interest rate environment and inflationary climate, like most retailers. It sells upscale home furnishings through a network of physical stores, or galleries, and robust digital channels. Although it targets an affluent clientele, which shielded it to some degree when inflation first started to balloon, it ultimately sells discretionary merchandise that people will cut back on when they're spending less.Visionary CEO Gary Friedman has been staunch in his approach to keep the company's premium branding and curtail promotional activity, but the company has been balancing both of these sides to get inventory moving without diluting its image. It continues to open new galleries, expanding into new regions, including European cities like Paris, London, and Milan. It also operates several high-end restaurants, guesthouses, jets, and yachts, and it's angling to become a global luxury brand.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool