Restoration Hardware jumps 25% (but its new magazine is the highlight)

Thursday, June 13, 2019 by Snacks

Relax into that upholstered sofa... and enjoy the 25% jump of Restoration Hardware shares after Wednesday's earnings (FYI, it goes by "RH" now). The fancy furniture brand jumped for 2 reasons: Sales rose 7% and it's moving some production out of China because, you know, trade war (investors were glad). But 1 detail in the report was the centerpiece.

Good news for your 3rd home's coffee table... RH just released its 136-page "RH Beach House" catalog ("RH Ski House" arrives this fall). Real and printed. Flip through the St. Barts and Mykonos chapters to gaze upon the naturally "teak" $1,000+ patio necessities. While the rest of retail errs on the side of online, RH does the opposite.

  • CEO Gary Friedman: We "refuse to follow the herd in self-promotion on social media.”
  • And it's working: RH invested $50M to build a multi-story Gallery flagship (brick and mortar) in NYC's Meatpacking district. Now it's on pace to generate $100M in annual revenue.

This is the extremification of American retail... Income stratification in the US is increasingly reflected by what stores are succeeding — Stocks of Dollar General and luxury LVMH are close to record highs. Now Restoration Hardware is leaning into its opulent origins by aiming even higher upscale with Beach House and Ski House. And more RH Galleries hit SF and Charlotte, NC this year.

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