Core Insights - RH is implementing diverse in-house strategies to ensure margin expansion amid high mortgage rates, tariff-related risks, and inflationary pressures [1] - The company is focusing on global expansion, a customer-friendly membership approach, and supply-chain optimization to increase revenue visibility [1] Group 1: Financial Performance - In Q1 2025, RH's adjusted EBITDA margin expanded by 80 basis points year-over-year to 13.1% [1][8] - The company expects its adjusted EBITDA margin for FY25 to be between 20% and 21%, up from 16.9% reported last year [4][8] - Earnings estimates for fiscal 2025 have trended upward to $10.87 per share, indicating robust 101.7% year-over-year growth [11] Group 2: Market Expansion - Demand in Europe has grown by 60% across RH Munich and RH Dusseldorf, with continued growth in RH Brussels and RH Madrid [2] - RH plans to open new locations in Paris in September 2025, and two more in London and Milan in 2026 [2] Group 3: Supply Chain Strategy - RH is shifting its sourcing out of China, expecting receipts to reduce from 16% in Q1 2025 to 2% by Q4 2025 [3][8] - By the end of 2025, RH projects that 52% of its upholstered furniture will be produced in the U.S. and 21% in Italy [3] Group 4: Competitive Positioning - RH shares have gained 13.9% in the past month, outperforming the Hoya Capital Housing ETF (HOMZ) [5] - In comparison, shares of competitors Williams-Sonoma and Arhaus have increased by 3.8% and 2.2%, respectively [6] Group 5: Valuation Metrics - RH stock is currently trading at a forward 12-month P/E ratio of 15.3X, which is lower than Williams-Sonoma's 18.83X and Arhaus's 19.66X [9] - The discounted valuation of RH stock compared to other market players presents a promising opportunity for investors [9]

Alibaba - Alibaba is a leading e-commerce and cloud service company facing competition and regulatory challenges in China, but it has strong demand in its cloud business [3][5] - The average analyst's 12-month price target for Alibaba is $162, indicating a 39% upside from the current share price, with a forward price-to-earnings multiple of 11.7 [4][7] - Alibaba's cloud revenue grew 18% year over year, and the company is leveraging AI for personalized user experiences and supply chain management [5][6] - Analysts project Alibaba's earnings to grow at an annualized rate of 16% over the next several years, suggesting potential for the stock to double in value within three to five years [7] Lyft - Lyft's stock has decreased nearly 80% since its 2019 IPO, but the company is now showing solid growth and profitability [8][9] - A Wall Street analyst has set a 12-month price target of $28 for Lyft, indicating an 80% upside potential [9] - In Q1, Lyft's revenue rose 14% to $1.5 billion, and adjusted EBITDA nearly doubled from $59.4 million to $106.5 million [10] - Lyft has introduced new features and made strategic acquisitions, including the purchase of Freenow to expand into Europe [11][12] - The stock is considered cheap with a price-to-sales ratio of around 1.1, and the company is expected to continue double-digit growth [12] RH - RH, a luxury furniture retailer, is recovering from macroeconomic pressures and is expected to see stock price increases [13][14] - The company operates around 100 galleries and is expanding into Europe, with strong performance in its U.K. gallery, where sales increased by 47% [16] - RH has reported year-over-year revenue increases for the past four quarters, with a 12% sales increase in the latest fiscal first quarter [17] - The average target price for RH is 24% higher than its current price, with one analyst predicting a 137% increase over the next 12 to 18 months [17][18] - RH is trading at a valuation of 13 times forward 1-year earnings, making it an attractive option for risk-tolerant investors [18]

Core Viewpoint - RH, formerly known as Restoration Hardware, is experiencing a decline in share price due to softness in the U.S. housing market, which directly impacts its luxury home furnishing business [1][2][18]. Group 1: Current Performance - RH's share price has dropped 23.2% over the past three months, significantly underperforming the Hoya Capital Housing ETF (HOMZ), which declined by 4.9% [1]. - Compared to competitors like Williams-Sonoma, Ethan Allen, and Arhaus, RH has also lagged, with their share prices falling by 3.4%, 1.7%, and 9.2% respectively during the same period [3]. Group 2: Market Challenges - The ongoing softness in the U.S. housing market is weakening demand for renovations and luxury home furnishings, which is critical for RH's business [2][18]. - Tariff uncertainties and rising expenses due to brand expansion strategies are adding to the company's challenges [2]. Group 3: Growth Prospects - Despite current challenges, RH's long-term prospects are bolstered by strategic investments in its brand portfolio and global expansion efforts [4]. - The company has seen a 60% increase in demand in its European markets, particularly in Munich and Dusseldorf, indicating strong international appeal [5][8]. Group 4: Strategic Initiatives - RH is shifting its sourcing strategy to reduce reliance on China, projecting a decrease in receipts from 16% to 2% by the fourth quarter of fiscal 2025 [10]. - The company aims to produce 52% of its upholstered furniture in the U.S. and 21% in Italy by the end of 2025 [10]. Group 5: Product Development - RH is evolving from a home furnishings retailer to a luxury lifestyle brand, focusing on product design and quality enhancement [11]. - The launch of new sourcebooks and the introduction of a new design aesthetic, Japandi, are part of its strategy to elevate its product offerings [12]. Group 6: Earnings Outlook - RH's fiscal 2025 EPS estimate has risen to $10.87, reflecting a 101.7% year-over-year growth [8][14]. - Although earnings estimates for fiscal 2026 have decreased to $14.77, this still indicates a 35.9% year-over-year growth [15]. Group 7: Valuation - RH's stock is currently trading at a forward P/E ratio of 15.04X, which is lower than its competitors, suggesting a potentially attractive valuation for investors [17].

俄罗斯国防部表示，俄罗斯军队已占领乌克兰"顿涅茨克"的诺沃谢尔希夫卡（NOVOSERHIIVKA）和 舍夫琴科（SHEVCHENKO）定居点。 ...

Core Viewpoint - Investing in turnaround stocks can be challenging, but successful turnarounds can yield significant gains [1] Company Overview - RH, formerly known as Restoration Hardware, is undergoing a transformation despite a stagnant housing market [2][3] - The company has shifted its focus to selling high-end furniture to affluent consumers and has rebranded its stores as "design galleries" [3] Financial Performance - Initially, RH's strategy led to revenue growth and operating margins increasing from approximately 10% in 2015 to over 24% during the pandemic [4] - However, margins have since compressed to just under 10% as revenue declined, indicating vulnerability to housing market fluctuations [6] Debt and Buyback Strategy - In response to market conditions, RH took on significant debt, totaling about $2.55 billion, to repurchase $1 billion in stock in 2022 and an additional $1.25 billion in 2023 [8][9] - This buyback reduced shares outstanding by over 25%, but the debt burden raises concerns if the housing market does not recover [9] Housing Market Context - The CEO described the current housing market as the worst in 50 years, with existing home sales nearly unchanged despite a significant population increase [10] - The prolonged downturn has exceeded management's expectations, leading to regrets about the timing of stock repurchases [11] Future Outlook - Despite challenges, there are signs of potential recovery, with last quarter's revenue up 12% year-over-year, and management anticipates revenue growth of 10% to 13% for the year [14][15] - The company is also investing in new design galleries, including locations in Paris and six in the U.S. [15] Risks and Considerations - RH's enterprise value is around $5.1 billion, and the company remains vulnerable to a prolonged housing market freeze due to its debt load [16] - The outlook for recovery is uncertain, influenced by interest rates, tariffs, and broader economic conditions [17]

Group 1: RH (Restoration Hardware) - RH has faced macroeconomic challenges, including a weak housing market and tariff uncertainties, leading to a 52% decline in stock price this year [4] - The company's trailing-12-month revenue is $3.3 billion, down from a peak of $3.9 billion, but it reported a 12% year-over-year revenue growth in the latest quarter [5] - RH is expanding into the $200 billion North American hotel industry with RH Guesthouses and offers luxury services, creating a lifestyle ecosystem beyond furniture [6] - The company has historically reported higher margins than average furniture stores, with an adjusted operating margin of 7% in the first quarter, below its 10-year average of 12% [7] - The stock is currently trading at a price-to-sales multiple of 1.16, significantly below its 10-year average of over 2 times sales, presenting a buying opportunity for long-term investors [8] Group 2: Roku - Roku's stock is trading about 32% below its price from five years ago, despite showing double-digit revenue growth [10] - As a leading connected-TV streaming platform, Roku benefits from a growing digital advertising market, which constitutes the majority of its revenue [11] - The platform achieved 35.8 billion total streaming hours in the first quarter, a 16% year-over-year increase, indicating strong user engagement [13] - Roku's recent integration with Amazon Ads allows advertisers to access 80% of U.S. connected TV households, potentially boosting advertising revenue [14] - The stock is priced at a 2.74 price-to-sales multiple, at the low end of its historical range, suggesting potential for future gains as advertising investment increases [16]

Company Overview - RH is a leading luxury retailer in the home furnishing space, offering a wide range of merchandise including furniture, lighting, textiles, bathware, décor, outdoor and garden items, tableware, and furnishings for children and teens [11] Investment Ratings - RH currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment outlook [11] - The company has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 16.81, which may appeal to value investors [12] Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.21 to $10.87 per share [12] - RH has demonstrated an average earnings surprise of 57.6%, suggesting potential for positive performance relative to expectations [12] Investment Considerations - With a solid Zacks Rank and strong Value and VGM Style Scores, RH is recommended for investors looking for potential opportunities in the luxury home furnishing sector [12]

Core Insights - The article discusses the challenges faced by RH (NYSE: RH) shareholders, particularly highlighting the volatility in the stock price since the Covid market crash in early 2020 [1]. Company Overview - RH has experienced significant fluctuations in its stock performance, making it a challenging investment for shareholders [1]. Analyst Background - Dilantha De Silva, the author, is an experienced equity analyst with over 10 years in the investment industry, focusing on small-cap stocks often overlooked by Wall Street [1]. - He has contributed to various investment platforms and has been featured on major financial news outlets [1]. Investment Position - The author holds a beneficial long position in RH shares, indicating a personal investment interest in the company's performance [2].

Core Insights - RH reported mixed results for Q1 fiscal 2025, with adjusted earnings exceeding estimates while net revenues fell short [1][4] - Year-over-year growth was notable for both adjusted earnings and net revenues [1] Financial Performance - Adjusted earnings per share were 13 cents, surpassing the Zacks Consensus Estimate of a loss of 9 cents by 244.4%, compared to a loss of 40 cents in the prior year [4][7] - Net revenues reached $814 million, slightly below the consensus estimate of $818 million by 0.5%, but up 12% year-over-year [4][7] - Revenues from the RH segment increased by 13% to $765 million, while Waterworks revenues decreased by 1.9% to $49 million [4] Margin Analysis - Gross margin expanded by 20 basis points to 43.7% [5] - Adjusted operating margin increased by 50 basis points year-over-year to 7% [5] - Adjusted EBITDA rose by 19.4% year-over-year to $106.4 million, with an adjusted EBITDA margin of 13.1%, up 80 basis points [5][7] Balance Sheet and Cash Flow - Cash and cash equivalents were $46.1 million, up from $30.4 million at the end of fiscal 2024 [6] - Merchandise inventories were valued at $1.01 billion, slightly down from $1.02 billion at the end of fiscal 2024 [6] - Net debt stood at $2.57 billion, with a net debt-to-adjusted EBITDA ratio of 4.6x [6] Future Outlook - For Q2, RH expects net revenues to grow between 8% and 10% year-over-year, with adjusted operating margins projected between 15% and 16% [9] - Fiscal 2025 guidance remains unchanged, with revenue growth expected between 10% and 13% and adjusted operating margins between 14% and 15% [10] - Free cash flow is anticipated to be between $250 million and $350 million [10] Market Reaction - Following the earnings announcement, RH's stock surged by 20.3% in after-hours trading, driven by a positive outlook for Q2 and fiscal 2025 [3][7]

Core Viewpoint - RH, formerly known as Restoration Hardware, has shown resilience with a projected revenue growth of 10% to 13% for FY 2025 despite macroeconomic challenges, but faced a mixed Q1 earnings report leading to volatility in stock performance [2][4]. Financial Performance - For Q1 2025, RH reported a net income of $8.04 million ($0.40 per share), reversing a loss of $3.63 million ($0.20 per share) from the previous year [4]. - Revenue increased by 12% year-over-year to $814 million, slightly below analyst expectations [4]. - Adjusted operating margin reached 7%, with EBITDA margin at 13.1% [4]. Supply Chain and Tariff Impact - RH is shifting production away from China, with imports expected to decrease from 16% in Q1 to 2% by Q4, aiming for 52% of upholstered goods to be produced domestically in the U.S. and 21% in Italy by year-end [5]. - Tariffs are projected to impact Q2 revenue by approximately six percentage points [5]. Expansion Plans - Despite tariff uncertainties, RH is advancing with global expansion, including a flagship store opening on Paris' Champs Élysées in September and plans to launch 7–9 new galleries annually in major cities like London and Milan [6]. Historical Performance and Valuation - Historically, RH's stock has shown significant volatility during downturns, falling 71% during the 2022 inflation shock and 68% during the 2020 pandemic crash [7][8]. - The current valuation stands at approximately 45× forward earnings, significantly higher than its five-year average of 38× and the S&P 500's 26× [9]. Market Context - Following a post-pandemic demand boom in FY 2020, RH has faced challenges from rising mortgage rates, inflation, and a declining housing market, although FY 2024 showed some recovery [10]. - Investor confidence remains fragile due to ongoing tariff impacts and a weak housing market [10].