Shares of high-end furniture retailer RH (formerly Restoration Hardware) dropped by 3.6%, losing $292 million in value following an investigative report by Hunterbrook Media. The report, which raised concerns about RH's international strategy, particularly its expansion in the UK, led to the decline. Despite this drop, RH's shares have risen over 50% in the past year, with its market capitalisation remaining close to $7.8 billion.
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Hunterbrook, affiliated with Hunterbrook Capital, questioned RH's strategic choices, including the potential performance of its RH England gallery in the Cotswolds. The report suggested that the gallery may fall short of the company's revenue projections, calling into doubt the effectiveness of RH's international expansion plans.
'In RH's filings, the company says the revenues it has generated across its international locations — Canada, the United Kingdom, Germany, Belgium, and Spain — have not been 'material in any fiscal period,' the report highlights
'The mounting cash problems aren't just catching the attention of analysts — they're lighting up one of Wall Street's most trusted financial distress indicators.'
Source: Hunterbrook.