Latest news with #RestorationHardware
Yahoo
4 days ago
- Business
- Yahoo
RH (RH): A Bull Case Theory
We came across a bullish thesis on RH on Stock Region Research's Substack by Stock Region. In this article, we will summarize the bull's thesis on RH. RH's share was trading at $190.83 as of June 27th. RH's trailing and forward P/E ratios were 45.22 and 18.25, respectively, according to Yahoo Finance. A house interior displaying the modern furnishings and fixtures from the company. RH (formerly Restoration Hardware) is a luxury home furnishings company whose stock performance closely mirrors shifts in consumer spending trends. Positioned in the high-end segment, RH appeals to affluent buyers with a taste for premium design and quality, making it highly sensitive to macroeconomic confidence and discretionary spending patterns. Currently, the market's sentiment around RH is subdued, with no major catalysts or developments in recent headlines to drive momentum. Investors are essentially in a holding pattern, awaiting the next earnings report to gauge whether consumers are still willing to spend on upscale home décor or are pulling back amid broader economic uncertainties. Key technical levels to monitor are $212.80 for a potential bullish breakout and $206.00 as a support level for bears. The current setup suggests that RH could either rebound strongly with improving consumer sentiment or face downward pressure if spending continues to weaken. With its brand likened to a luxurious, admired couch—beautiful but fragile in uncertain times—RH remains a high-beta play on consumer confidence. A strong earnings beat or improved guidance could reignite bullish interest, but any disappointment might lead to sharp downside. Until more clarity emerges, RH's stock sits at a critical juncture, embodying both elegance and volatility in a market increasingly cautious about luxury spend. Previously we covered a bullish thesis on DICK'S Sporting Goods, Inc. (DKS) by BotMissile in May 2025, which highlighted the company's undervaluation, strong free cash flow, and strategic upside from the Foot Locker acquisition. The company's stock price has appreciated by approximately 13.27% since our coverage. This is because the thesis played out. Stock Region shares a similar view but emphasizes RH's sensitivity to consumer confidence. RH isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of RH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Vuori Names Former Fabletics Executive as Global President
Vuori is adding to its C-suite. The Encinitas, Calif.-based brand has named Ashley Kechter global president and Ed Lee chief legal officer and corporate secretary as it continues to expand its global footprint. More from WWD Foot Locker Promotes CCO Franklin Bracken to President in Effort to 'Accelerate' Its Lace Up Plan Who is Incoming REI Co-op President and CEO Mary Beth Laughton? Oakley Looks to Define the Future as It Celebrates 50th Anniversary Kechter served most recently as global brand president of Fabletics and has more than two decades of experience in marketing, product creation, merchandising, planning, sourcing and strategic operations for a number of brands including Gap Inc., Banana Republic and Restoration Hardware. In her newly created role at Vuori, Kechter will oversee the company's global business strategy across retail, e-commerce, supply chain operations, planning, operations excellence, international and wholesale. Lee, who spent the last 13 years at Restoration Hardware, most recently as chief legal and compliance officer, will lead Vuori's legal department and support the brand as it continues to grow its footprint in the U.S. and overseas. He had also served as deputy general counsel at MGM Resorts International. 'As we reach a critical 10-year milestone this year and look to the future, I'm confident in our ability to drive continued business growth as we thoughtfully expand Vuori's footprint and establish deeper connectivity with consumers everywhere,' said Joe Kudla, Vuori's chief executive officer and founder. 'Ashley and Ed are perfectly positioned to help Vuori do just that, and I'm excited to see our brand's evolution and growth under the incredible knowledge and expertise they bring to their respective roles.' Kudla founded Vuori in 2015 as a men's activewear brand and has expanded into a full lifestyle collection for men and women. It now operates in more than 18 countries and expects to have more than 100 of its own stores by 2026 with expansion centered around key markets in Europe and Asia. In April, it signed American football quarterback Arch Manning as an ambassador, joining Instagram gymastics darling Livvy Dunne and others, and last fall, it received a $825 million investment led by General Atlantic and Stripes, bringing its value to $5.5 billion. Best of WWD EXCLUSIVE: Maje Names Charlotte Tasset Ferrec CEO Nadja Swarovski Exits Family Company Amid Ongoing Corporate Shakeup Aeffe MD Exits Fashion Group
Yahoo
26-06-2025
- Business
- Yahoo
RH Stock Slides 23% in 3 Months: Should You Buy the Dip or Wait?
RH RH, previously known as Restoration Hardware, is a luxury retailer in the home furnishing space, whose share price performance has dropped 23.2% in the past three months compared with the Hoya Capital Housing ETF (HOMZ) index's 4.9% decline. HOMZ is an exchange-traded fund that offers a diversified glimpse of the U.S. residential housing industry through 100 companies across homebuilding, rental operators, home improvement, furnishings, mortgage services and real estate tech, to name a few. Image Source: Zacks Investment Research This California-based company's prospects are currently ailing from the ongoing softness in the country's housing market. RH's business is directly related to housing demand patterns, as softness in housing demand weakens renovation and home furnishing demand, especially in luxury. Moreover, the ambiguity surrounding the implementation of tariffs is adding to its concerns, alongside the increasing expense structure due to its ongoing brand expansion and elevation has been trailing behind the other renowned market players, including Williams-Sonoma, Inc. WSM, Ethan Allen Interiors Inc. ETD and Arhaus, Inc. ARHS, during the past three months when considering the share price performance. Even though Williams-Sonoma, Ethan Allen and Arhaus are standing above RH, their share price performance has also tumbled 3.4%, 1.7% and 9.2%, respectively, during the said time on the brighter side, the long-term prospects of RH seem appealing thanks to the strategic investments it is undergoing across its brand portfolio. The company is realizing incremental benefits from its global expansion efforts, apart from its product transformation and platform enhancement activities. Also, its recent sourcing shift strategies to minimize tariff impacts highlight prosperous long-term visibility. Favorable Global Trends: RH has been witnessing robust demand trends in the global market, especially in Europe. Across Europe, the market remained robust during the first quarter of fiscal 2025, with demand growing 60% across RH Munich and RH Dusseldorf. Besides, the company continues to witness demand acceleration in its noncomparable galleries, RH Brussels and RH Madrid. Amid all the uncertainties, RH believes that its luxury brand positioning and unique aesthetics have emanated a strong international appeal and, in the pursuit of global expansion, will provide it with a substantial opportunity to build brand image over RH is optimistic about its opening in Paris, with the gallery on the Champs Élysées, which is expected to open in September 2025, alongside another two openings in London and Milan in 2026. After the robust trends witnessed across its European business, RH expects to continue making meaningful investments in this market to boost further growth and profitability. In the upcoming years, RH expects to open RH Sydney, The Gallery in Double Bay, in Resourcing Efforts: With the ongoing tariff-related risks lingering in the market, RH is positioning itself to weather the storm when it arrives. The company recently highlighted that it is currently focusing on shifting its sourcing out of China with the expectation of receipts reducing from 16% in the first quarter of fiscal 2025 to 2% in the fourth quarter of the same year. Besides, the company has successfully resourced a significant portion of its upholstered furniture to its North Carolina factory. By the end of 2025, it projects 52% of its upholstered furniture to be produced in the United States and 21% in & Platform Enhancement Strategies: RH has been emphasizing several strategic initiatives to evolve from a home furnishings retailer to a luxury lifestyle brand over time. The initiatives include its focus on production elevation or transformation and retail platform expansion. It aims to continue elevating its products' design and quality while opening large, immersive Design Galleries, which blur the line between retail and RH highlighted the launch of its 2025 RH Outdoor Sourcebook, the new RH Interior Sourcebook and the RH Modern Sourcebook, which offer collections including furniture, textiles, lighting, rugs and much more. The company remains optimistic about the introduction of its new design aesthetic, Japandi, that amalgamates the essence of Japanese serenity and Scandinavian into 2025, for the remainder of the year, RH expects to open seven Design galleries at locations including RH Montreal, RH Paris, RH Detroit, RH Manhasset, RH San Diego and RH Palm Desert. In June 2025, RH opened its freestanding RH outdoor gallery, expanding its brand presence in East Hampton. In the long term, the company's platform expansion plans include opening seven to nine new galleries annually, with two to three Design Studios or Outdoor galleries, or new concept galleries per year. RH's earnings estimates for fiscal 2025 have trended upward in the past 30 days to $10.87 per share, which indicates robust 101.7% year-over-year growth. The analysts' sentiments remain bullish for the year, backed by the in-house strategies RH is pulling off to counter the market risks. EPS Trend Image Source: Zacks Investment Research However, even with the earnings estimates for fiscal 2026 having moved down in the past 30 days to $14.77 per share, the estimated figure indicates 35.9% year-over-year growth. RH stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.04X. This is compared with the forward 12-month P/E ratios of 18.23X, 10.64X, and 19.22X at which Williams-Sonoma, Ethan Allen and Arhaus are currently trading. The discounted valuation of the stock, compared with two of the other market players, looks promising for investors. The housing market directly influences the revenue visibility and profitability of RH, as they are directly related to each other. With the current housing market softness in the United States, the benefits from the domestic market seem depressed for the company. As homebuyers are navigating through affordability concerns, new home sales remain suppressed, with renovation activities being on the dimmer side due to the inflationary the earnings call of the first quarter of fiscal 2025, RH highlighted the adverse impacts it faced due to the significant and unexpected Liberation Day tariffs announced on April 2, 2025. It believes that this sudden surge will hurt its second quarter of fiscal 2025 revenues by six percentage points, accompanied by ripple effects into order fulfillment and even though the ongoing in-house strategies are elevating RH's prospects, it is hitting hard on its expense structure. During the first quarter of fiscal 2025, the selling, general & administrative expenses (as a percentage of total net revenues) expanded 80 bps year over year to 36.8%, mainly due to elevated advertising costs related to the circulation of the Spring 2025 RH Interiors Sourcebook. Furthermore, during the quarter, the company witnessed an increase in other product costs, which partially impacted the margins. The chart below shows the SG&A expense trend in the past year. Image Source: Zacks Investment Research As discussed above, RH is undergoing strategic efforts to weather the market uncertainties in the form of tariff-related risks, inflationary pressures and housing market softness. Given the nature of its business, RH is grappling with the current softness in the U.S. housing its product elevation and platform expansion strategies, alongside robust trends across the European market, are boding well for its prospects. Although in the short term, RH is expected to witness a slight setback, in the long term, the growth trends remain bright, as witnessed from the earnings expectation taking any decisions regarding RH stock, investors must weigh both sides of the market currently. Thus, based on the discussion, it is prudent for existing investors to retain this Zacks Rank #3 (Hold) company's shares for now, whereas new investors might want to wait for a more favorable entry can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report Arhaus, Inc. (ARHS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-06-2025
- Business
- Yahoo
2 Top Stocks to Buy Now at Big Discounts and Hold for Years
RH (formerly Restoration Hardware) is more than just a furniture store; it's a lifestyle brand. Roku's large audience reach just landed it a game-changing deal with Amazon. 10 stocks we like better than RH › Sometimes Wall Street can be very slow to understand the real value of a business. The competitive advantage and growth strategy of a company can be misunderstood, leading to depressed valuations and underperforming share prices. Investors who can see through the stock volatility and focus on the key signals that set a company up for long-term success can be rewarded with outsize gains over time. Here are two stocks of market-leading brands that are trading well off their previous highs and could be significantly undervalued. RH (NYSE: RH), the company formerly known as Restoration Hardware, emerged as a prominent luxury furniture brand over the past decade. In the past year, however, the business struggled with several macroeconomic headwinds, such as a weak housing market and uncertainties over tariffs. Questions about near-term demand have sent the stock down 52% this year, but this is a great buying opportunity for a long-term investor. RH's trailing-12-month revenue of $3.3 billion is below its previous peak of $3.9 billion a few years ago, but it just reported a strong first quarter. Revenue grew 12% year over year in the quarter, outperforming the rest of the industry. RH is expanding its addressable market to hospitality offerings in its design galleries, such as restaurants and wine bars, which has elevated the shopping experience to something that cannot be replicated by e-commerce competitors. Moreover, the company entered the $200 billion North American hotel industry with RH Guesthouses, and it offers much more, including private jets and luxury yachts for charter in the Caribbean and Mediterranean. All this creates an ecosystem of services meant to showcase the RH lifestyle and raise the brand to something more than just furniture products. It's for these reasons that RH has a history of reporting much higher margins than the average furniture store. Its adjusted operating margin was 7% in the first quarter, below its previous 10-year average of 12%. It should return to those higher margins in a strong housing market, and this is not reflected in the stock's valuation. Over the last 10 years, the stock traded at a price-to-sales multiple ranging from 0.48 to 6.59. The average was just over 2 times sales, with the stock currently trading at a multiple of 1.16. Investors who buy shares at these lower discounted prices and hold until the housing market is fully recovered should be well rewarded. Roku (NASDAQ: ROKU) is another beaten-down stock whose long-term prospects are not fully reflected by its current share price. The stock is trading about 32% below where it was five years ago, but the platform continues to show double-digit growth in revenue that sets up a potential bull run. Roku is a leading connected-TV streaming platform that is benefiting from a growing digital advertising market, which is how the company generates most of its revenue. It also gets a small percentage of revenue from selling its streaming devices, but that is a low-margin business. Advertising can be cyclical with the broader economy, and that's what caused the stock to collapse a few years ago. But Wall Street is missing the real value of the company's platform. It is fundamentally a TV operating system that has achieved tremendous viewership in the U.S. through its affordable Roku TVs and streaming devices. The company reaches half of U.S. broadband households. This large viewership led to 35.8 billion total streaming hours on its platform in the first quarter, representing a year-over-year increase of 16%. This opens up a lot of opportunities for growth over the long term, as evidenced by a recent deal with Amazon. Roku just announced an integration with Amazon Ads, which could have a significant impact on Roku's advertising revenue. This partnership will allow advertisers to access 80% of U.S. connected TV households through Amazon's demand-side platform, sending more business to Roku. The streamer's revenue grew 16% year over year in the first quarter, indicating more advertising by big brands that want exposure to its large user base. This reach provides tremendous negotiating power with content providers, retail brands, and other media companies that would like access to Roku's audience. The stock is priced at a 2.74 price-to-sales multiple, which is at the low end of its past trading range. As Roku continues attract more advertising investment, investors who patiently hold the stock will be rewarded. Before you buy stock in RH, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and RH wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool recommends RH. The Motley Fool has a disclosure policy. 2 Top Stocks to Buy Now at Big Discounts and Hold for Years was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
21-06-2025
- Business
- Globe and Mail
2 Top Stocks to Buy Now at Big Discounts and Hold for Years
Sometimes Wall Street can be very slow to understand the real value of a business. The competitive advantage and growth strategy of a company can be misunderstood, leading to depressed valuations and underperforming share prices. Investors who can see through the stock volatility and focus on the key signals that set a company up for long-term success can be rewarded with outsize gains over time. Here are two stocks of market-leading brands that are trading well off their previous highs and could be significantly undervalued. 1. RH RH (NYSE: RH), the company formerly known as Restoration Hardware, emerged as a prominent luxury furniture brand over the past decade. In the past year, however, the business struggled with several macroeconomic headwinds, such as a weak housing market and uncertainties over tariffs. Questions about near-term demand have sent the stock down 52% this year, but this is a great buying opportunity for a long-term investor. RH's trailing-12-month revenue of $3.3 billion is below its previous peak of $3.9 billion a few years ago, but it just reported a strong first quarter. Revenue grew 12% year over year in the quarter, outperforming the rest of the industry. RH is expanding its addressable market to hospitality offerings in its design galleries, such as restaurants and wine bars, which has elevated the shopping experience to something that cannot be replicated by e-commerce competitors. Moreover, the company entered the $200 billion North American hotel industry with RH Guesthouses, and it offers much more, including private jets and luxury yachts for charter in the Caribbean and Mediterranean. All this creates an ecosystem of services meant to showcase the RH lifestyle and raise the brand to something more than just furniture products. It's for these reasons that RH has a history of reporting much higher margins than the average furniture store. Its adjusted operating margin was 7% in the first quarter, below its previous 10-year average of 12%. It should return to those higher margins in a strong housing market, and this is not reflected in the stock's valuation. Over the last 10 years, the stock traded at a price-to-sales multiple ranging from 0.48 to 6.59. The average was just over 2 times sales, with the stock currently trading at a multiple of 1.16. Investors who buy shares at these lower discounted prices and hold until the housing market is fully recovered should be well rewarded. 2. Roku Roku (NASDAQ: ROKU) is another beaten-down stock whose long-term prospects are not fully reflected by its current share price. The stock is trading about 32% below where it was five years ago, but the platform continues to show double-digit growth in revenue that sets up a potential bull run. Roku is a leading connected-TV streaming platform that is benefiting from a growing digital advertising market, which is how the company generates most of its revenue. It also gets a small percentage of revenue from selling its streaming devices, but that is a low-margin business. Advertising can be cyclical with the broader economy, and that's what caused the stock to collapse a few years ago. But Wall Street is missing the real value of the company's platform. It is fundamentally a TV operating system that has achieved tremendous viewership in the U.S. through its affordable Roku TVs and streaming devices. The company reaches half of U.S. broadband households. This large viewership led to 35.8 billion total streaming hours on its platform in the first quarter, representing a year-over-year increase of 16%. This opens up a lot of opportunities for growth over the long term, as evidenced by a recent deal with Amazon. Roku just announced an integration with Amazon Ads, which could have a significant impact on Roku's advertising revenue. This partnership will allow advertisers to access 80% of U.S. connected TV households through Amazon's demand-side platform, sending more business to Roku. The streamer's revenue grew 16% year over year in the first quarter, indicating more advertising by big brands that want exposure to its large user base. This reach provides tremendous negotiating power with content providers, retail brands, and other media companies that would like access to Roku's audience. The stock is priced at a 2.74 price-to-sales multiple, which is at the low end of its past trading range. As Roku continues attract more advertising investment, investors who patiently hold the stock will be rewarded. Should you invest $1,000 in RH right now? Before you buy stock in RH, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and RH wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool recommends RH. The Motley Fool has a disclosure policy.
