RH's stock has plunged 19% after the company reported disappointing Q1 guidance that missed expectations for profit, revenue, and outlook. The luxury furniture retailer is struggling with a severely weakened housing market, where existing home sales are at a 40-year low, affecting its sales. Despite CEO Gary Friedman's claims that current conditions present a chance for generational wealth creation through stock investment, RH projects a revenue decline of 2-4% for Q1 and aims to eradicate its debt by 2029, compounded by significant financial impacts from increased backorders.
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