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.