Below is the link to the audio replay of the Flash Call on Restoration Hardware (RH) we hosted at 10:30am EST.
Audio Replay Link: CLICK HERE
What we covered on the call:
- Co-CEOs don't work. They never have, and they never will.
- The only reason why Carlos has 'CEO' on his business card is because Gary Friedman was forced to step down and take a different role due to his extracurricular activities. That's when Carlos got what he wanted -- the CEO role.
- The reality is that most investors have only spent time with Carlos, but Karen Boone (CFO) is less replaceable in our opinion. Though they'll probably get someone to replace Carlos (it's a pretty appealing job -- many will want it) they can certainly continue to execute without him.
- Oh, and the fundamentals look phenomenal. We raised our long-term EPS estimate to $10 from $8.50. There aren't many 25% top-line growers in Consumer and this is one of them.
- We see 40%+ EPS growth over the next 3-5 years and RH is trading at ~20x our next year (2014) estimate in the pre-market. We haven't seen a disconnect between reality and reaction this significant in years.