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.
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)