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Upturn AI SWOT - About
RH (RH)
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Upturn Advisory Summary
06/27/2025: RH (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
20 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Year Target Price $260.59
Year Target Price $260.59
| 6 | Strong Buy |
| 4 | Buy |
| 8 | Hold |
| 0 | Under performing |
| 2 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -3.47% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.57B USD | Price to earnings Ratio 45.22 | 1Y Target Price 257.24 |
Price to earnings Ratio 45.22 | 1Y Target Price 257.24 | ||
Volume (30-day avg) - | Beta 2.19 | 52 Weeks Range 123.03 - 457.26 | Updated Date 06/29/2025 |
52 Weeks Range 123.03 - 457.26 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 4.22 |
Earnings Date
Report Date 2025-06-12 | When - | Estimate 1.45 | Actual 0.13 |
Profitability
Profit Margin 2.57% | Operating Margin (TTM) 6.87% |
Management Effectiveness
Return on Assets (TTM) 5.15% | Return on Equity (TTM) 29.86% |
Valuation
Trailing PE 45.22 | Forward PE 18.25 | Enterprise Value 7466743433 | Price to Sales(TTM) 1.09 |
Enterprise Value 7466743433 | Price to Sales(TTM) 1.09 | ||
Enterprise Value to Revenue 2.29 | Enterprise Value to EBITDA 16.08 | Shares Outstanding 18732400 | Shares Floating 15274440 |
Shares Outstanding 18732400 | Shares Floating 15274440 | ||
Percent Insiders 18.38 | Percent Institutions 98.07 |
Analyst Ratings
Rating 3.7 | Target Price 260.59 | Buy 4 | Strong Buy 6 |
Buy 4 | Strong Buy 6 | ||
Hold 8 | Sell 2 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
RH
Company Overview
History and Background
RH, formerly Restoration Hardware, was founded in 1979. Initially focused on hardware restoration, it evolved into a luxury home furnishings company, expanding its product lines and adopting a gallery-style retail format.
Core Business Areas
- RH Interiors: Offers furniture, lighting, textiles, bathware, decor, and outdoor furnishings.
- RH Modern: Focuses on contemporary designs.
- RH Baby & Child: Offers furnishings and du00e9cor for children's rooms.
- RH TEEN: Offers furnishings and du00e9cor for Teen's rooms.
- RH Hospitality: Operates restaurants, wine bars, and coffee bars within select RH galleries.
Leadership and Structure
Gary Friedman serves as Chairman and CEO. The company operates with a hierarchical structure, with various departments focusing on product design, sourcing, retail operations, and marketing.
Top Products and Market Share
Key Offerings
- Upholstery: Sofas, chairs, and other upholstered furniture are a significant revenue driver. The market is competitive with companies such as Ethan Allen Interiors Inc. (ETD) and Williams-Sonoma, Inc. (WSM). Market share data is not publicly broken down for each product category.
- Case Goods: Includes dining tables, coffee tables, consoles, and storage solutions. Competitors include Bassett Furniture Industries, Inc. (BSET) and Hooker Furnishings Corporation (HOFT). Market share data is not publicly broken down for each product category.
- Lighting: Offers a wide range of chandeliers, pendants, lamps, and outdoor lighting fixtures. Competitors include Circa Lighting and Visual Comfort & Co. Market share data is not publicly broken down for each product category.
Market Dynamics
Industry Overview
The luxury home furnishings market is driven by economic conditions, consumer confidence, and housing market trends. Demand is cyclical and affected by discretionary spending habits. The luxury home goods and furniture sector is characterized by design trends, brand image, and quality.
Positioning
RH positions itself as a luxury brand offering high-quality, stylish home furnishings. Its competitive advantage lies in its brand image, gallery-style retail spaces, and exclusive product designs.
Total Addressable Market (TAM)
The global furniture market is expected to reach over $800 billion by 2027. RH is targeting the high-end segment, representing a significant portion of this TAM. Their strategic brand and upscale experience gives them leverage in this market.
Upturn SWOT Analysis
Strengths
- Strong brand reputation and image
- Unique gallery-style retail experience
- Exclusive product designs
- High-quality products
- Loyal customer base
Weaknesses
- High price points limiting accessibility
- Cyclical demand dependent on economic conditions
- Vulnerability to supply chain disruptions
- Heavy reliance on housing market trends
Opportunities
- Expansion into new geographic markets
- Growth in online sales and e-commerce
- Development of new product categories
- Strategic partnerships and collaborations
- Increase brand reach through digital marketing and advertising
Threats
- Economic downturns impacting consumer spending
- Increased competition from other luxury brands
- Fluctuations in raw material costs
- Changes in consumer preferences and design trends
- Supply chain disruptions and logistics challenges
Competitors and Market Share
Key Competitors
- Williams-Sonoma, Inc. (WSM)
- Ethan Allen Interiors Inc. (ETD)
- Arhaus, Inc. (ARHS)
Competitive Landscape
RH competes in the luxury home furnishings market based on design, quality, and brand image. Its gallery-style retail format distinguishes it from competitors. WSM has strong supply chain. ETD has focus on custom-made. ARHS has wide range of products.
Growth Trajectory and Initiatives
Historical Growth: RH has historically grown by expanding its retail footprint, increasing online sales, and introducing new product lines. However, growth has fluctuated with economic cycles.
Future Projections: Future growth projections are based on analyst estimates, which vary depending on economic conditions and company performance. Growth is expected to come from e-commerce expansion, strategic partnerships, and new store openings.
Recent Initiatives: Recent initiatives include expanding the RH Membership program, opening new galleries in key markets, and investing in digital marketing to reach a broader audience.
Summary
RH is a luxury brand with a strong market presence, yet its high price point and reliance on the economic climate pose significant risks. While its gallery retail concept and brand loyalty provide an advantage, the firm needs to look into its TAM and also improve its pricing models. The competitive landscape requires constant innovation and careful risk management in its current position.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Research Reports
- Financial News Outlets
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About RH
Exchange NYSE | Headquaters Corte Madera, CA, United States | ||
IPO Launch date 1998-06-19 | Chairman & CEO Mr. Gary G. Friedman | ||
Sector Consumer Cyclical | Industry Specialty Retail | Full time employees 5690 | Website https://www.rh.com |
Full time employees 5690 | Website https://www.rh.com | ||
RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. It operates through three segments: RH Segment, Waterworks, and Real Estate. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It sells its products through hospitality, websites, sourcebooks, and trade and contract channels, as well as operates RH galleries, RH outlet stores, RH guesthouses, RH Interior design office, and waterworks showrooms. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1980 and is headquartered in Corte Madera, California.
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