Shares of RH (NYSE:RH) are bouncing back on Friday afternoon, as investors wade back in following one of the market's worst days in years.
As of 2 p.m. EDT, RH's shares were up about 7.3% from Thursday's closing price.
RH, the parent company of the Restoration Hardware luxury home-goods chain, has had a tough week in the markets. As of the end of trading on Thursday, its share price had fallen over 35% from last Friday's close.
The sell-off was exacerbated by some legitimate concerns. While RH does have an online business, it's primarily a brick-and-mortar retailer, with over 100 stores around the world.
As with other retailers, investors have worried that the company's retail traffic could fall sharply as consumers practice "social distancing" in an effort to slow the spread of COVID-19. A Morgan Stanley analyst wrote on Wednesday that retail foot traffic is already falling in the United States, with luxury foot traffic down 14.7% last week.
That said, RH remains a strong business with good long-term growth prospects. Investors looking for value among beaten-up shares on Friday seem to be recognizing that.
RH hasn't yet set a date for its fourth-quarter and fiscal 2019 earnings report, but it's likely to happen in a couple of weeks. We'll learn more about how the company's stores have been faring at that time.