RH Sinks Again 8-20-25 - Becker Business

Summary3 min read

Becker Business Podcast: "RH Sinks Again" (8-20-25)

Host: Scott Becker

Date: August 20, 2025

Episode Overview

In this brief episode, Scott Becker discusses the significant and ongoing decline in RH’s (formerly Restoration Hardware) stock performance, highlighting its recent drops, annual decline, and reflecting on both the company's leadership and his personal experiences with the brand. Becker offers candid commentary on the company’s excuses for underperformance and draws a parallel to his own schadenfreude regarding certain brands and figures.

Key Discussion Points & Insights

1. RH’s Stock Performance and Company Leadership

Significant Decline Noted:
- RH stock dropped about 7% on the most recent Wednesday.
- Now reported to be down approximately 44% for the year.
- "RH is down again on Wednesday about 7%. It's now down for the year about 44%." [00:08]
Leadership’s Response:
- The CEO continues to provide external explanations for the downturn.
- Becker’s critical of these justifications, hinting at a lack of ownership or strategic rethink.
- "The CEO keeps on coming up with reasons as to why there's not really anything to worry about... It's always everything but their strategy and planning and what they're doing." [00:17]

2. Market Context

Retail Sector Troubles:
- Brief mention that Target is also facing market challenges.
- Suggestion of wider struggles in the market that day.
- "As an aside, target also taking it on the chin today. We'll see how that ends up and generally the market struggling as well." [00:32]

3. Personal Reflections and Anecdotes

Personal Experience with RH:
- Becker shares a negative memory of visiting an RH store where he felt demeaned.
- This experience influences his emotional reaction to RH's current struggles.
- "It comes out of going to an RH store years ago and being treated like somebody who just shouldn't be there. Like, you know, they look at you like you're poor trash and treat me that way..." [00:40]
Schadenfreude:
- Candid admission of taking pleasure in RH’s difficulties, relating it to broader, sometimes irrational, personal feelings about corporate reputations.
- "...for some reason I unfortunately and this is not a positive to my own Persona is I take great pleasure in watching RH take it on the chin again..." [00:52]
Parallel to Jim Harbaugh:
- Becker compares his feelings about RH to the pleasure he’d take in seeing sports figures who he feels are not as innocent as they seem suffer public consequences.
- "It's almost like for whatever reason, I take improper pleasure in seeing Jim Harbaugh banned from college football for 12 years after being seeming like the most innocent clean cut of people, but really just pretend play acting." [01:06]

Notable Quotes & Memorable Moments

On Company Excuses:
"It's always everything but their strategy and planning and what they're doing." — Scott Becker [00:21]
On Personal Experience with RH:
"Being treated like somebody who just shouldn't be there... they look at you like you're poor trash and treat me that way." — Scott Becker [00:43]
On Schadenfreude:
"This is not a positive to my own Persona... I take great pleasure in watching RH take it on the chin again..." — Scott Becker [00:54]
Parallel to Jim Harbaugh:
"...I take improper pleasure in seeing Jim Harbaugh banned from college football for 12 years after being seeming like the most innocent clean cut of people, but really just pretend play acting." — Scott Becker [01:08]

Important Segment Timestamps

[00:08] — RH’s recent and year-to-date stock drops outlined
[00:17] — Critique of RH CEO’s external blaming
[00:32] — Note on Target and general retail market struggles
[00:40] — Becker’s negative RH store visit
[00:52] — Admission of personal (unhealthy) enjoyment of RH’s struggles
[01:06] — Comparison to reactions regarding sports figures

Summary

Scott Becker delivers a sharp, personal take on RH’s ongoing stock woes, questioning company leadership’s explanations and weaving in his own negative experience with the retailer. The episode is marked by frank, occasionally self-deprecating commentary, making it engaging for listeners interested in the intersection of business results, leadership accountability, and the personal side of business news analysis.

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Transcript1 lines

[00:00]
A
This is Scott Becker with the Becker Business Podcast and the Becker Private Equity Podcast. Today's discussion is RH sinks again. So here's the deal. RH is down again on Wednesday about 7%. It's now down for the year about 44%. The CEO keeps on coming up with reasons as to why there's not really anything to worry about or deteriorists or it's the Trump administration. It's something, it's always everything but their strategy and planning and what they're doing. But again, the story today is RH down again 6 to 8%, down for the year, 44% plus. You know, as an aside, target also taking it on the chin today. We'll see how that ends up and generally the market struggling as well. But RH taking another chin. Thank you for listening to the Becker Business and the Becker Private Equity Podcast. For some reason in and this is bad, it comes out of going to an RH store years ago and being treated like somebody who just shouldn't be there. Like, you know, they look at you like you're poor trash and treat me that way for so, so for some reason I unfortunately and this is not a positive to my own Persona is I take great pleasure in watching RH take it on the chin again, down 6% today, down 44% year to date. It's almost like for whatever reason, I take improper pleasure in seeing Jim Harbaugh banned from college football for 12 years after being seeming like the most innocent clean cut of people, but really just pretend play acting. Thank you for listening to the Becker Business Podcast and the Becker Private Equity Podcast. Thank you very, very much.