RH

Sector: Home and home improvement Countries of operation: Canada, the UK and the US (primary market) Key product categories: Bathware, child and teen furnishings, décor, furniture, lighting, outdoor and garden, and textiles Annual Metrics [caption id="attachment_146953" align="aligncenter" width="700"] Fiscal year ends on January 31
*Trailing 12 months ended October 31, 2021[/caption]   Summary Founded in 1979 as Restoration Hardware and currently headquartered in Corte Madera, California, RH is an American retailer that specializes in home furnishings. The company offers a range of products in categories including bathware, child and teen furnishings, décor, furniture, lighting, outdoor and garden, tableware and textiles. RH reports on two business segments: RH Segment and Waterworks. The majority of the company’s operations are in the US but it also has a presence in Canada and the UK. Company Analysis Coresight Research insight: RH’s year-over-year growth accelerated during the third quarter with persistent expansion momentum, despite continued supply chain issues that only intensified with the spread of Delta variant. The rise in demand for its products is backed by strong momentum in the housing market and the desirability of its brand. The company posited that momentum in the housing market is leading to heightened consumer demand for furniture and furnishings. Historically RH has been focused on expanding its brick-and-mortar presence, and has continued to do so with further physical expansion planned in 2022. In terms of its digital presence, the company has continued to lag against its peers, although it has made efforts to increase its online presence: One of its value-driving strategies in 2021 is ‘Digital Reimagination.’

Tailwinds	Headwinds
Strong housing market that is supporting demand for home goods Rise in homebuilding and home improvement activity Further global expansion, with upcoming launch in the UK to boost the brand’s international presence, and opportunities to expand in major markets	Supply chain challenges, such as longer transit times and higher shipping costs, which could be a headwind for the company

  Strategy As per its second quarter (ended on July 31, 2021) report, RH aims to focus on the below key value-driving strategies to drive growth across its business:

• Product Elevation: Elevate the design and quality of the products along; introduce RH Contemporary in 2022 and RH Couture, RH Color and RH Bespoke over the coming years.
• Gallery Transformation: Open new Design Galleries in all major markets to unlock the value of its vast assortment, generating a $5 to $6 billion revenue opportunity in North America. Transform real estate fleet from the company’s existing legacy retail footprint to a portfolio of Design Galleries, and incorporate hospitality into the majority of new Design Galleries, which would further elevate and enhance RH’s product and brand.
• Brand Elevation: Evolve the brand beyond curating and selling products to conceptualizing and selling spaces by building an ecosystem of products, services, places and spaces designed to elevate and enhance RH’s product and establish the RH brand as a thought leader and taste-maker.
• Digital Reimagination: Digitally reimagine the RH brand and business model both internally and externally: internally, regarding how it innovates, curates and integrates all the dynamic aspects of the RH brand; and externally as it introduces its customers to the World of RH, a new digital portal presenting RH’s products, services, places and spaces.
• Global Expansion: Actively pursue expansion of the RH brand globally, with the aim of launching international locations in Europe from 2022.

Revenue Breakdown   Company Developments

Date	Development
November 19, 2021	RH announces the opening of RH Jacksonville, The Gallery at St. Johns Town Center.
November 8, 2021	RH announced that DeMonty Price, President, Chief Operating, Service and Values Officer, has informed the Company of his plans to retire from RH to spend time with his family, effective January 29, 2022, the end of the fiscal year.
September 24, 2021	RH announces the opening of RH Oak Brook, The Gallery at Oakbrook Center. RH Oak Brook represents the latest physical expression of the brand, and its continued foray into hospitality with a glass-encased Rooftop Restaurant and Wine Bar that open onto a beautifully landscaped park.
May 7, 2021	RH announces the opening of RH Dallas, The Gallery on Knox Street. RH Dallas represents the latest physical expression of the brand and the first Design Gallery in Texas with an integrated hospitality experience, including a glass-encased Rooftop Restaurant and Wine Bar that open onto a beautifully landscaped park
January 5, 2021	RH announces the Company to make initial equity investment of approximately $105 million in connection with real estate development initiatives in Aspen, Colorado.
	RH opens a new outlet in Cool Springs in Tennessee, located at 11626 Galleria Boulevard.
July 10, 2020	RH announces the opening of RH Marin, The Gallery at the Village. RH Marin is the company’s first design gallery in California, featuring an integrated hospitality experience, including a glass-encased Rooftop restaurant and wine bar that opens onto a beautifully landscaped park.
June 16, 2020	RH announces the opening of RH Charlotte, The Gallery at Phillips Place.

  Management Team

• Gary G. Friedman—Chairman and CEO
• Jack Preston—CFO
• Price DeMonty—President, Chief Operating, Services and Values Officer
• Eri Chaya—President, Chief Creative and Merchandising Officer and Director

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Source: Company reports/S&P Capital IQ