RH Stock Plummets 40% Despite 203% Trading Volume Surge to 50th Rank

On April 3, 2025, RH's trading volume reached 19.08 billion, marking a significant 203.44% increase from the previous day. This surge placed RH at the 50th position in the day's stock market rankings. However, RH's stock price experienced a sharp decline, dropping by 40.09%.

RH's stock plummeted due to disappointing fourth-quarter results and concerns over import tariffs on Southeast Asian suppliers. The company's earnings release after hours on Wednesday revealed weaker-than-expected performance, leading to a significant drop in investor confidence. The double downgrade by BofA Securities further exacerbated the situation, grounding the stock's value.

CEO of RH reacted to the stock's decline, attributing it to the dual impact of the company's poor earnings report and the imposition of tariffs by the Trump administration on foreign countries. The combination of these factors led to a substantial sell-off, with shares plunging more than 40%.

RH's stock has been under pressure for the past year, with a 20% decline overall and a 40% drop from its highs. This downturn is primarily driven by weak consumer spending and a sluggish housing market. The company's Q4 results, which included revenue of $812.4 million, fell short of the consensus estimate of $831.7 million, further contributing to the stock's decline.