Restoration Hardware stock rating reiterated by KeyBanc amid tariff concerns

Published 12/09/2025, 10:24
Restoration Hardware stock rating reiterated by KeyBanc amid tariff concerns

Investing.com - KeyBanc has reiterated its Sector Weight rating on Restoration Hardware (NYSE:RH), with the analyst note coming after the luxury furniture retailer reported second-quarter results below market expectations. The stock, currently trading at $228.12, has experienced a significant 9% decline over the past week, according to InvestingPro data.

The company’s guidance was lowered to account for new tariffs and management’s decision to delay the release of its Sourcebook catalog, according to KeyBanc analyst Bradley Thomas. Despite these challenges, InvestingPro data shows RH maintains a Fair financial health rating, with projected revenue growth of 11% for the current fiscal year.

The analyst highlighted that RH Paris, which opened last week, is off to a strong start, with planned locations in London and Milan expected to drive additional international growth for the company.

KeyBanc expressed positive sentiment toward RH’s product assortment and international expansion strategy, which represents a key growth vector for the luxury home furnishings retailer.

Despite these positive factors, KeyBanc maintained its Sector Weight rating, citing concerns about the uncertain tariff environment, consumer backdrop, and heightened competitive landscape in the luxury furniture market.

In other recent news, RH reported its earnings for the second quarter of 2025, showing a mixed performance. The company missed analysts’ forecasts, with earnings per share (EPS) at $2.93, falling short of the expected $3.18. Additionally, RH’s revenue was reported at $899.2 million, which was below the anticipated $906.58 million. These results, however, did not deter investor interest, as the company’s stock saw an increase in aftermarket trading. The rise in stock value was attributed to strategic growth plans and future guidance shared by the company. Despite the earnings miss, RH’s future outlook seemed to resonate positively with investors. The company’s recent developments have attracted attention from analysts and investors alike.

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