How Housing Restored Restoration Hardware Holdings Inc (RH)

Page 2 of 2

Yet the threat to Restoration Hardware is one that’s being felt throughout housing-related industries: a potential end to Federal Reserve measures to stimulate the economy. With mortgage rates already having risen sharply, home-improvement retailers The Home Depot, Inc. (NYSE:HD) and Lowe’s Companies, Inc. (NYSE:LOW) have fallen back from their recent highs, and both of them could see weaker activity both from consumers and from construction-industry purchasers if rates keep rising. Restoration Hardware could potentially suffer from the same trends going forward.

In Restoration Hardware’s report, watch for commentary on how sensitive the company is to the changing interest rate environment. If management suggests any drop-off in sales, then the big boost the stock has seen could give way to a pullback.

The article How Housing Restored Restoration Hardware originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Home Depot, Lowe’s, and Williams-Sonoma.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2