3 Reasons to Buy RH Stock Like There's No Tomorrow

In the face of a broader economic downturn, luxury home furnishings retailer RH (NYSE: RH) has demonstrated remarkable resilience and growth potential. Despite the challenging market conditions, RH's stock has surged, and analysts remain bullish on its prospects. Here are three compelling reasons to consider buying RH stock, supported by data and expert analysis.

1. Market Share Gains and Strong Revenue Growth:
- RH has been gaining market share in the luxury home furnishings sector. In the third quarter of 2024, the company gained between 15 to 25 points in market share, and it expects to gain between 25 to 45 points in the fourth quarter (Friedman, 2024).
- RH's revenue growth has outpaced the market and its competitive set. In the third quarter of 2024, the company's revenues grew by 8.1% year-over-year, while the furniture and home furnishings retail sector was down 3.3% through November (Furniture World News Desk, 2024).
- RH's strong revenue growth and market share gains indicate its ability to capture market share and maintain a competitive edge in the luxury home furnishings market.



2. International Expansion and New Product Offerings:
- RH is expanding its presence in Europe, with plans to open Galleries in Paris and London in 2025, and Milan in 2026. The company expects this expansion to drive growth and increase its brand's global reach (Friedman, 2024).
- RH is continually introducing new products and refreshing its offerings to maintain consumer interest. In 2024, about 80% of RH's product assortment was new, with the Modern Sourcebook featuring 54 new collections (Friedman, 2024).
- The upcoming Interiors Sourcebook will introduce nearly 90 new, more premium-priced collections, and an Outdoor Sourcebook is planned to be the most dominant assortment of high-quality outdoor furniture in the world (Friedman, 2024).
- RH's international expansion and new product offerings contribute to its long-term growth potential and market dominance by expanding its reach into new markets and introducing innovative and appealing products.

3. Analyst Ratings and Positive Inflection in Business Trends:
- Analysts have a positive outlook on RH's stock, with an average rating of "Buy" and a 12-month stock price forecast of $429.4, which is an increase of 2.46% from the latest price (Analyst Forecast, 2025).
- Despite the economic downturn, RH has maintained strong financial performance. In the third quarter of 2024, the company reported net revenues of $811.732 million, up 8.1% compared with the same period in 2023, and net income of $33.168 million (RH, 2024).
- RH's positive inflection in business trends, strong financial performance, and positive analyst ratings suggest that the company is well-positioned to weather the economic downturn and continue its growth trajectory.



In conclusion, RH's market share gains, international expansion, new product offerings, and positive analyst ratings make it an attractive investment opportunity, even in the face of a broader economic downturn. By focusing on these strategic initiatives, RH maintains its competitive edge in the luxury home furnishings market and positions itself for long-term growth and market dominance.