RH: Bullish Thesis Intact

Takeaway: Please join us Monday, February 10th at 1:00pm EST for a Flash Call on RH. ***Call details will be posted morning of 2/10

Please join us on Monday, February 10th at 1:00pm EST for a Flash Call on Restoration Hardware (RH). On the call we will revisit our bullish thesis on RH and address current challenges in the market - real and perceived. 

 

RH: Bullish Thesis Intact - Call details

 

Given all the noise out there in the market, we want to be clear about delineating risk/reward around each of the following three durations:

  • TRADE (3 weeks or less)
    • Sentiment - and the key issues we hear from investors
    • Risk scenarios based on how RH likely fared operationally and financially in 4Q while retailers were dropping like flies
    • Is the Company's guidance at risk, and if so, how much?
    • 'Deferred Revenue' has gotten a lot of attention year-to-date. Is the concern justified, or overblown?
    • How is e-commerce trending?

 

  • TREND (3 months or more)
    • Catalyst calendar throughout CY2014
      • Store opening cadence
      • Category launch
      • Catalog drops, or lack thereof
    • Management transition - life after Carlos

 

  • TAIL (3 years or less)
    • Inflection point(s) in square footage model
    • Impact of larger format stores on the comp
    • Trade-off between in-store vs. direct revenue
    • Gross Margin Opportunity, real or perceived
    • SG&A leverage - or lack thereof?
    • Capital intensity (something no one asks about)

 

CONTACT

The dial-in details and the presentation will be circulated on Monday prior to the call. Please email  for more information.

 


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