Investing.com - Goldman Sachs downgraded Restoration Hardware (NYSE: RH ) from Neutral to Sell on Tuesday, setting a price target of $179.00 amid concerns about slowing growth.

The downgrade comes as RH faces increasingly difficult comparisons for the remainder of 2025, with the luxury furniture retailer’s growth prospects dimming without improvement in the housing market, according to the investment bank.

Goldman Sachs noted that one of RH’s new brand extensions was recently delayed from the second half of 2025 to spring 2026, further complicating the company’s near-term outlook.

The investment bank pointed to declining consumer sentiment metrics, with RH’s Net Promoter Score and Net Purchase Intent scores tracking below peers and its NPS decelerating since February.

Goldman Sachs also highlighted RH’s recent shift toward markdowns and promotions as necessary in the difficult macro environment, marking a strategy change for a company that previously avoided discounting due to concerns about long-term brand erosion.

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