Core Viewpoint - RH's recent trading performance shows a +2.67% change, outperforming major indices, but the stock has depreciated by 4.86% over the past month, indicating underperformance compared to the Consumer Staples sector and the S&P 500 [1] Financial Performance - Upcoming earnings per share (EPS) for RH are projected at $2.13, reflecting a 14.11% decrease year-over-year, while revenue is anticipated to be $882.95 million, indicating an 8.77% increase from the same quarter last year [2] - For the annual period, Zacks Consensus Estimates project earnings of $9.08 per share and revenue of $3.5 billion, representing increases of +68.46% and +10% respectively from the previous year [3] Analyst Sentiment - Recent changes to analyst estimates for RH are crucial as they reflect the evolving business landscape, with upward revisions indicating positive sentiment towards the company's operations and profit generation capabilities [3] - Currently, RH holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate remaining steady over the past month [5] Valuation Metrics - RH is trading with a Forward P/E ratio of 20.72, which is a discount compared to the industry average Forward P/E of 20.97, and has a PEG ratio of 0.81, significantly lower than the average PEG ratio of 2.8 for Consumer Products - Staples stocks [6] Industry Context - The Consumer Products - Staples industry, which includes RH, is ranked 206 in the Zacks Industry Rank, placing it in the bottom 17% of over 250 industries, indicating weaker performance compared to higher-ranked industries [7]

Core Viewpoint - The analyst maintains a hold rating for Robert Half International (NYSE: RH), indicating a cautious outlook despite some positive signals in demand [1] Investment Approach - The investment strategy focuses on identifying businesses with potential for long-term growth and significant terminal value, emphasizing core business economics such as competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The analyst prioritizes fundamental research and sectors with strong secular tailwinds, aiming to uncover long-term equity value drivers [1] Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds, which were initially seeded by friends and family [1] - The motivation for writing is to share investment insights and receive feedback from the investment community [1]

Core Viewpoint - The article highlights compelling investment opportunities in consumer discretionary stocks, particularly in retail, despite a tech-driven bull market overshadowing them [1] Group 1: Lululemon Athletica - Lululemon Athletica's shares have declined significantly this year due to weakening sales trends, but this does not reflect poorly on the brand itself [3][6] - The stock trades at a forward price-to-earnings multiple of 13, indicating potential value for investors, especially as Lululemon has been growing faster than Nike [3] - Lululemon has a market capitalization of $21 billion, operates 784 stores globally, and has tripled its sales over the last six years [5] - The company has a strong customer base with 30 million members in its program, and international sales, particularly in China, are expected to grow by 20% to 25% next quarter [5][6] Group 2: RH (Restoration Hardware) - RH is positioned to benefit from a potential rebound in the housing market as the Federal Reserve lowers interest rates, making it a strategic investment for 2026 [7] - The company caters to higher-income clients and has expanded into lifestyle branding, including hospitality and luxury services [8] - RH has a market capitalization of $3 billion and reported an 8.4% year-over-year revenue growth in the second quarter, with a 21% increase in demand on a two-year basis [10] - The company has successfully expanded into less populated areas, with a remote gallery in England driving a 76% increase in demand [11] - The stock is trading at a forward P/E of 20 and is down 75% from its previous peak, suggesting it may be undervalued relative to future growth opportunities [12]

Group 1: Apple Inc. - Apple has incurred significant tariff costs, paying $800 million in tariffs during the June quarter and expecting $1.1 billion in the September quarter, which, while a small proportion of total profit, is still notable [1][9] - CEO Tim Cook has pledged to invest $600 billion in the U.S. over the next five years, which may help Apple mitigate some tariff impacts [3][9] - The company is facing uncertainty regarding future tariffs, especially with ongoing trade negotiations with China and potential 100% tariffs on foreign-made semiconductors [8][10] Group 2: RH (Restoration Hardware) - RH's stock has declined over 50% in 2025, impacted by new furniture-specific tariffs announced by President Trump, which include a 30% duty on upholstered furniture and a 50% tariff on kitchen cabinets [12][14] - The company plans to produce 52% of its upholstered furniture in the U.S. by the end of the fiscal year, which may help mitigate some tariff impacts [16] - Despite the luxury brand's pricing power, the slow housing market poses challenges for passing on costs to consumers, leading to uncertainty about the overall tariff impact on RH [18][19]

Core Viewpoint - The high-end furniture chain RH is expected to eventually make a turnaround despite recent challenges and a significant decline in stock value [1][3]. Group 1: Recent Performance and Challenges - RH's stock has decreased by 76% from its peak in 2021 and is down approximately 57% year to date due to a weak housing market, inflation, and new tariffs [2][3]. - The company reported an 8.4% increase in revenue to $899.2 million in its fiscal second quarter, with demand rising by 13.7% [5]. - Adjusted operating margin and adjusted EBITDA improved by 340 basis points to 15.1% and 20.6%, respectively, indicating strong profitability despite macroeconomic headwinds [5][6]. Group 2: Strategic Adjustments - CEO Gary Friedman has proactively responded to tariffs, with a projection that 52% of upholstered furniture will be sourced from the U.S. by year-end [7]. - RH has significantly reduced its reliance on China, with sourcing expected to drop from 16% in Q1 to just 2% in Q4, while also addressing production in India facing high tariffs [8][9]. Group 3: Historical Context and Future Growth - RH's stock previously collapsed in 2016 after shifting to a membership model, but rebounded to an all-time high by 2017, suggesting potential for recovery despite current challenges [10][11]. - The company is expanding in Europe, with gallery demand in RH England up 76% in the second quarter, and new stores in major markets like Paris showing strong performance [12]. - RH is diversifying its business by opening restaurants, guesthouses, and engaging in turnkey home sales through RH Residences, positioning itself for future growth [13].

Core Viewpoint - Roche's drug, Ocrelizumab (brand name: Gazyva/Gazyvaro), has received FDA approval for a new indication to treat adult patients with active lupus nephritis (LN) who are undergoing standard treatment [1] Group 1: Drug Approval and Indication - Ocrelizumab is the first CD20-targeted therapy approved by the FDA for the treatment of lupus nephritis [1] - The approval is based on positive results from the Phase II NOBILITY study and the Phase III REGENCY study [1] Group 2: Clinical Study Results - In the REGENCY study, 46.4% of patients receiving Ocrelizumab combined with standard treatment achieved complete renal response (CRR) at week 76, compared to 33.1% in the standard treatment group (adjusted difference of 13.4%, 95% CI: 2.0%-24.8%; P=0.0232) [1] - The Ocrelizumab group also showed clinically meaningful improvements in complement levels, as well as reductions in anti-dsDNA antibodies, disease activity, and inflammatory markers compared to the standard treatment group [1]

Core Insights - The article emphasizes the importance of understanding that past performance does not guarantee future results, highlighting the need for careful analysis before making investment decisions [2][3] Company and Industry Summary - The article does not provide specific information regarding any companies or industries, focusing instead on general investment principles and disclaimers [1][2][3]

Group 1 - Gary Alexander has extensive experience in covering technology companies on Wall Street and working in Silicon Valley, which provides insights into current industry trends [1] - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications, indicating his influence in the investment community [1] - His articles are syndicated to popular trading apps like Robinhood, suggesting a broad reach and impact on retail investors [1]

Group 1 - RH announced the opening of RH Manhasset, an immersive retail experience covering 19,000 square feet across three levels [1] - The new location integrates luxury home furnishings with rare art, antiques, and artifacts from around the world [1] Group 2 - RH is a curator of design, taste, and style in the luxury lifestyle market [2] - The company offers collections through retail galleries, sourcebooks, and various online platforms [2]

Core Viewpoint - The Trump Administration's new tariffs on furniture imports are set to take effect on October 14, impacting various companies differently, with some facing significant margin pressure while others may benefit from the changes [1][3][5]. Impact on Companies - RH Inc. is heavily reliant on imports from Vietnam and China, with over 70% of its products sourced from these countries, making it vulnerable to the new tariffs, which include a 25% tariff on upholstered furniture and kitchen cabinets, rising to 30% and 50% respectively by 2026 [6][8]. - RH has warned of a potential revenue hit of $30 million in the second half of the year due to tariff pressures, with an additional $40 million impact expected in 2026 [7]. - Wayfair, while somewhat insulated due to its marketplace model, will still face challenges as 35-40% of its third-party suppliers are located in Asian countries affected by the tariffs, forcing the company to make difficult decisions regarding cost absorption or price increases [10][11][12]. - Ethan Allen Interiors stands to benefit from the tariffs due to its strong domestic manufacturing presence, with approximately 75% of its merchandise produced in North America, allowing it to maintain prices or implement small price hikes without sacrificing volume [14][15]. Market Reactions - RH's stock has declined by 10% this month, reflecting investor concerns over its vulnerability to tariff impacts and a downgraded rating from Zacks Research to Strong Sell [9]. - Wayfair's stock has increased over 100% year-to-date, but the new tariffs may present an opportunity for profit-taking [13]. - Ethan Allen's stock has seen limited growth of 5% year-to-date, but the tariffs could attract new customers and revive sales growth, which has been down 4.9% year-over-year [15].