RH's stock plunge shows even the ultrarich are worried about spending on their homes

Shares of RH plunged toward a six-year low after the company's latest earnings report and cautious outlook, which indicated that even high-net-worth customers are cutting back on home spending. The results and guidance signal weakening demand for high-end furnishings and materially worsened investor sentiment, driving a sharp sell-off in the stock.

Analysis

Shares of RH plunged toward a six-year low after the company's latest earnings report and cautious outlook, which indicated that even high-net-worth customers are cutting back on home spending. The results and guidance signal weakening demand for high-end furnishings and materially worsened investor sentiment, driving a sharp sell-off in the stock.