We're issuing an updated Black Book and will be hosting a call on Tuesday December 8th at 1pm EST to discuss how our thinking on RH has evolved since the company’s last print and what our thoughts are headed into Thursday’s earnings. A lot has happened in 13 weeks... not the least of which is the stock underperforming not only the market by 16%, but Retail as well (by 7%) – despite RH being more insulated from some of the issues that are clipping earnings today for retailers more broadly. Over this time period, RH meaningfully accelerated square footage growth, launched two new concepts. Some say it’s bad timing. We disagree.
Nonetheless, we’re going to go through the puts and takes on a TRADE, TREND and TAIL duration. We’ll present our incremental insight, vet our case to see where we could be wrong, and share some of the pushback we’ve generally received in the meetings we’ve done in the past month.
Call details and full topic outline to come on Monday