S&P Global Ratings downgraded its rating for luxury furniture maker RH.
S&P expects the company to show weaker performance in 2023 due to reduced consumer spending.
- The S&P downgraded RH's credit rating from BB to BB- on Thursday.
- D2C sales comprised about 40% of RH's business in 2020 as the company benefitted from the pandemic.
- The S&P cited a decrease in "home-related discretionary spending," in 2023 as a key reason for its decision.
- The ratings agency expects RH's revenue to decrease by 19% this year