RH shares rose 20% in October according to S&P Global Market Intelligence, as housing stocks rallied and investors rotated out of AI stocks while interest rates edged lower. The Federal Reserve declined to raise its benchmark rate, and a short squeeze also lifted the stock, with 58% of its float sold short as of Oct. 15 after several quarters of sluggish growth. Shares jumped 5% on Oct. 20 and 7% on Oct. 21 on high volume, then rose 9.4% on the highest daily volume since its Oct. 22 earnings report. RH now expects full-year revenue growth of 5.5%-7% after better-than-expected results, while it keeps opening galleries and expanding in Europe. The article notes that a significant housing market recovery would be needed to accelerate growth and margins, though investors seem to see rebound potential in the sector.
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