RH (NYSE: RH)

This investigation is for anyone who acquired securities in RH (NYSE: RH) from March 27, 2024 through April 2, 2025.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by overstating the demand for the Company’s products.

On January 24, 2025, Hunterbrook Media published a report alleging, among other things, that RH may be “running out of money,” stating that “an analysis of the last 20 quarters shows RH has consistently failed to meet expectations, with a cumulative $1.4 billion shortfall in free cash flow” and that “RH’s latest narrative of rapid, imminent growth appears to be unsubstantiated as well.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on April 2, 2025, after the market closed, RH released its fourth quarter 2024 financial results, revealing, among other things, earnings per share of $1.58 on $812 million in revenues, an increase of 10% year over year, far below the Company’s previous guidance of 18% to 20% revenue growth. The Company further disclosed that it “ended the year with meaningful debt” and “excess inventory of $200 to $300 million at cost” despite also reporting “Total Demand Increased 17% and RH Brand Demand Increased 21%.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in RH (NYSE: RH) from March 27, 2024 through April 2, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.