By Motley Fool
Why RH Stock Dropped 14% Last Month
Shares of RH (NYSE: RH) were sliding last month as the high-end home furnishings retailer formerly known as Restoration Hardware got swept up in the broad market sell-off over the Federal Reserve’s interest rate increase, and then fell again as weak retail earnings from peers such as Target added to concerns about a weakening consumer and inflation adding to costs. The headwinds were strong enough to counteract some positive news, including Berkshire Hathaway’s increased stake in RH and a stock market rebound at the end of the month. There wasn’t much direct news out on RH, but at as a high-end consumer discretionary stock, it can be a bit of bellwether for the broader economy, and investors seem to be treating it as such.
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