Jim Cramer Says We’re Entering a Bear Market and Breaks Down These 10 Stocks

9. RH (NYSE:RH)

Number of Hedge Fund Holders: 51

Jim Cramer discussed RH (NYSE:RH), formerly known as Restoration Hardware, in anticipation of its earnings report this Wednesday. Given the stock’s dramatic decline and ongoing market uncertainty, Cramer urged caution:

“Now there’s some corporate news adjacent to Liberation Day. RH reports on Wednesday close that’s the old restoration hardware has fallen from 457 down to 236, a sickening decline but not unlike many other retailers. I’d say wait for the balance, I’m not really in – I don’t know – it’s too hard, how about that? It’s just too hard… Bets out of Washington weigh too heavily on the market to make that kind of bet and with this tape it does feel more like a bet than an investment.”

RH is a luxury home furnishings retailer offering upscale furniture, lighting, and textiles. The company operates galleries and design centers across the U.S. and is known for its aspirational branding and high-end catalog presentation. However, macroeconomic pressures and shifting consumer preferences have weighed on performance.

Jim Cramer has been optimistic about RH (NYSE:RH) over the past months. Here’s what he said about the stock 2 months ago:

“Now see RH is an example of how they worked really hard to get out of China. They’ve done a fantastic job about it. If you sell RH I think you’re selling a company that has been moving so aggressively out of China that you’d be making a big mistake. But interestingly enough, they [Goldman] had a sell on RH, the whole way from two hundred to here. And now they’re back . . .putting the hate on again? Why doesn’t that guy just go to his beach house, see how much is RH, and realize that . . .

“That guy’s got a Hampton’s house and it’s filled with RH. That’s what you do. You fill it with RH. You don’t fill it with Wayfair, no partner’s gonna fill his place with Wayfair. They’d really get hurt. Gary Friedman has said over and over again I’m moving out of China. I’m moving out of China. So this guy, who’s hated it all the way, now they’re back putting the hate on. You know I don’t like it.”