RH (NYSE:RH) shares lost around 14% since the company’s Q4 results announcement last week. While Q4 EPS of $5.66 came in better than the Street estimate of $5.57, the company cautioned investors that sales trends have slowed markedly early in 2022.

For a while, the analysts at Oppenheimer have recommended clients remain on the sidelines with the company, upon concerns about the potential lacking operational controls and disciplines. The company performed well through the COVID-19 crisis and CEO Gary Friedman and his team continue to make significant progress in developing the RH brand. In the analysts’ view, recent topline weakness ($902.7 million compared to the consensus of $931.07 million) is likely more specific to the company than indicative of dislocations throughout the home furnishings space, owing to the unique consumer demand dynamics of the chain.