RH – The Most Compelling Story in Retail Price Target of $250
For the casual observer, RH, the former Restoration Hardware, is an upscale furniture retailer that was turned around by design veteran and CEO Gary Friedman.
This generalist overview of RH misses the forest through the trees as RH has created the most exciting concept in retail since the creation of the Apple store.
RH, much like the early days of any disruptive company, cannot be judged on a quarter to quarter basis. True to the CEO’s words, this has become a company with no peers. Did you hear that? No competition domestic or international.
Never a report has been written on Wall Street where the pictures are more valuable than the words.
Gary Friedman started RH as a mall-based furniture retailer and therefore has always been valued against and given similar multiples to Ethan Allen, La-Z-Boy, and Williams Sonoma.