RH Stock Just Popped. 3 Reasons the Growth Stock Can Keep Gaining From Here

Like most stocks with exposure to the housing market, RH (NYSE: RH), the home-furnishings retailer formerly known as Restoration Hardware, has struggled in recent years.

The stock is down more than 50% from its pandemic-era peak, and revenue and profits have fallen sharply over the past year. As CEO Gary Friedman said in his recent shareholder letter, the company faced "the most challenging housing market in three decades."

RH's fourth-quarter results confirmed those headwinds as revenue fell 4.4% to $738.3 million and adjusted earnings per share declined 75% to $0.72. Both those results missed estimates, yet the stock had a surprising reaction to the report. Shares jumped 17.3% on the report on Thursday as Friedman expressed optimism in the business's recovery and guidance indicated that the company would return to growth as well.

Source Fool.com