Although it significantly increased its revenue and profits last year, the American ultra-high-end furniture retailer failed to meet expectations in the fourth quarter. And as it issued cautious forecasts for 2026, its stock plummeted on the New York Stock Exchange.
Although RH (formerly Restoration Hardware) performed well in 2025, it nevertheless fell far short of expectations and disappointed the stock market.
The leading American high-end furniture retailer, founded in 1979 in California by Stephen Gordon and favored by both affluent individuals and professionals, ended the last fiscal year on a weak note, which closed at the end of January.
Below forecasts
“The company’s net revenue for the fourth quarter and fiscal year 2025 was impacted by approximately $30 million due to a higher-than-expected level of backorders and special orders resulting from customs-related sourcing,” said Gary Friedman, CEO of the group, which develops retail concepts combining sophisticated home decor showrooms with high-end dining and launched a luxury hotel business (RH Guesthouse) in New York in 2022.
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Featured photo: © RH
