RH Climb 0.02% on $300M Surge (395th) Amid Institutional Selling and Legal Challenge

RH (RH) traded with a 0.02% gain on August 7, 2025, despite a 138.1% surge in trading volume to $0.3 billion, ranking 395th in market activity. The stock faced mixed news, with institutional selling and a legal challenge impacting sentiment.

The Baron Discovery Fund divested its RH position, citing heightened risk and uncertainty around the home furnishings retailer’s strategic outlook. Separately, Arhaus, a competitor, filed a lawsuit against RH and its co-chief merchandising and creative officer, alleging unfair business practices that could incur legal costs and reputational harm. These developments contributed to investor caution ahead of the slight positive close.

Offsetting the negative headlines, RH announced the opening of its second design gallery in Canada—RH Montreal—marking a strategic expansion. Institutional activity also showed mixed signals, with Neo Ivy Capital Management increasing its stake while Legato Capital Management reduced its position. Such positioning reflects ongoing debate about RH’s long-term prospects amid market volatility.

Backtest analysis of a high-volume trading strategy revealed a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. The results highlight the potential of liquidity concentration in driving short-term performance, particularly in turbulent markets, though risks remain tied to market conditions and investor behavior.