RH - Finally Tapping One of Many New Markets (Milwaukee, WI)
RH currently operates in 62 markets in the US (as we define them). All but 3 by our math could support a store over 20k sq. ft. and 38 could support a store 40k sq. ft. or lager. But, what gets lost in the conversation sometimes is the new market opportunity.
By our math there are 19 markets in the US and Canada with spending and demographic characteristics on par with RH's current portfolio and of those markets 10 could support an Atlanta sized full line design gallery and another 7 could support a Houston/Greenwich sized store.
One of those markets is Milwaukee, where it looks like RH will be opening a new 27k square foot store. Most likely a 2017 or 2018 event. It’s a market where the company previously operated (closing its mall location in 2012) and by our math could support a store as big as 45k sq. ft.
NKE, Adidas - Marathon Runner Eliud Kipchoge's Nike shoe insoles came apart in the beginning of the Berlin Marathon. He still won the race, but fell short of his goal of a world record.
Truth be told, Nike running shoes were originally designed to fall apart after crossing the finish line. Less materials, less glue and adhesives = lighter shoe and significantly less weight carried over the course of a few thousand strides. But the picture below is certainly not what Nike had in mind. Didn't Eliud wear-test them first? It seems like he pulled this pair right out of the box, which is unusual for a runner on a big race. The whole thing is just weird. And Adidas probably loved that the gaffe happened in its back yard.
WBA - Walgreens automated pharmacy system went down last Tuesday following planned maintenance, the problem was fixed on Friday. Pharmacists had to manually fill prescriptions during the outage.
WFM - Whole Foods is cutting 1,500 jobs (1.6% or workforce). Company expects some of the displaced workers to find a job from 2,000 open positions the company currently has.
ROST - Ross stores continuing aggressive store openings, 8 new openings over 2 weeks.
APP - American Apparel receives delisting warning from NYSE. NYSE states "financial condition has become so impaired that it appears questionable, as to whether the company will be able to continue operations and/or meet its obligations as they continue to mature"
CONN - Appliance and Furniture retailer Conn's is on track to open its 100th store next month.