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10 Stocks Jim Cramer Talked About & Warned About A Weak Market.
RH (NYSE:RH) is one of the largest homebuilding companies in America. Its shares are down 41% year-to-date, and they closed 19% lower on April 1st. On March 31st, the firm reported its fourth quarter earnings and posted $842 million in revenue and $1.53 in adjusted earnings per share to miss analyst estimates. Cramer has discussed RH (NYSE:RH) several times over the past couple of months. For instance, in September, he commented that the firm’s CEO, Gary Friedman, would agree with the claim that the housing market was the worst in four decades. In December, the CNBC TV host shared his take on what could help RH (NYSE:RH)’s shares. He remarked that the firm could benefit from the Federal Reserve deciding to lower interest rates. However, Cramer added that the firm could suffer if the housing market continued to suffer and Friedman proceeded with his expansion strategy. In this appearance, he shared that RH (NYSE:RH) was suffering from turnover:
“RH was a tough call, although I do say that Gary Friedman did talk about selling a lot of property. There’s a lot of land in Aspen. I don’t know they tell me the land in Aspen is worth a great deal. I’m not being facetious, they’ve have a debt problem. And the debt problem is what driving it down. They did have decent cash flow, it’s not enough. The turnover there, it is big. . .one of the great measures of things that we forget, when you have a big turnover, it’s not bullish. It says, you don’t have it under control . . .actual big people at the companies are departing.
“Gary’s fighting the worst housing market, I think it’s [inaudible] in history.”
Recurve Capital discussed RH (NYSE:RH) in its second quarter 2025 investor letter:
“The large negative contributions from both Cogent and RH (NYSE:RH) have been frustrating. Both are down for valid reasons, but I nonetheless expect great results from these companies over the coming years and they should become meaningful positive contributors to performance.
RH became a lightning rod for tariffs in April. As of this writing, presumably “stable” future tariff rates have been established in its largest source markets (especially China and Vietnam) which have taken the worst-case scenarios off the table (i.e. the bottom branches of the decision tree have been trimmed). There are still a few more tariff negotiations to come, but they are relatively small in exposure and we estimate that RH can offset the gross profit impact of these new tariff rates with about a 6-7% price increase. The company already pushed through HSD/LDD price increase across many SKUs in April/May. In other words, the gross profit impact already has been mitigated. With the most significant headline risks behind us, we see a cleaner operating environment going forward which should allow RH to resume and sustain its double-digit growth for years to come.”
