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]

Home Depot (HD) closed the most recent trading day at $368.74, moving +1.44% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%. The home-improvement retailer's stock has dropped by 1.3% in the past month, falling short of the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 5.95%.The upcoming earnings release of Home Depot wi ...

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].

Group 1 - Bassett Furniture Industries Incorporated (NASDAQ: BSET) is positioned as a micro-cap proxy in the approximately $250 billion US home furnishing market [1] - The company has demonstrated resilience in a challenging environment compared to its peers [1]

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]

Financial Data and Key Metrics Changes - Consolidated delivered sales for Q4 2025 were $571 million, growing 3% year-over-year [6][7] - For the fiscal year, consolidated delivered sales reached $2.1 billion, also growing 3% compared to the previous year [7][27] - Operating cash flow for the year was $187 million, up 18% from the prior year [7][30] - The company maintained a strong balance sheet with $328 million in cash and no external debt [7][30] - Adjusted diluted EPS for the year was $2.92, down from $2.98 in fiscal 2024 [27][29] Business Segment Data and Key Metrics Changes - Retail segment sales for Q4 increased 8% to $247 million, driven by new stores and acquisitions [24] - Wholesale segment sales grew 2% to $324 million in Q4, primarily from the North American business [25] - Joybird's delivered sales were $36 million, down 2% year-over-year, with a positive adjusted operating margin [26] Market Data and Key Metrics Changes - Written same-store sales for the retail segment decreased 5% year-over-year, influenced by high mortgage rates and economic volatility [13] - Industry data showed mixed results, with some peers reporting flat to mid-teen declines in same-store sales [13] - Joybird's written sales trends decreased 21% in the quarter, with stronger performance in physical stores compared to online [14][15] Company Strategy and Development Direction - The company is focused on its Century Vision strategy, aiming for double-digit growth and operating margins [16][22] - Plans to expand the La-Z-Boy Furniture Galleries network to over 400 stores, with a focus on company-owned locations [17][18] - The company is investing in its supply chain and distribution network to enhance efficiency and service levels [10][11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model to outperform peers despite ongoing economic challenges [9][22] - The company anticipates continued macroeconomic volatility but expects to benefit from a rebound in the housing market in the long term [22][35] - Management highlighted the importance of agility in navigating external uncertainties and maintaining consumer engagement [12][22] Other Important Information - The company was recognized in Newsweek's list of America's most loved brands and most trustworthy companies for 2025 [35] - The company plans to open approximately 15 new company-owned and independent stores in fiscal 2026 [32][33] Q&A Session Summary Question: Can you provide details on the drivers for margin expansion in the wholesale segment? - Management indicated that half of the margin improvement is within their control through distribution redesign, while the other half depends on a healthy industry and housing market [40][42] Question: Why is the distribution redesign project being initiated now? - The timing is due to the increased scale of the business and the opportunity for efficiency improvements [44][45] Question: What has been observed in written orders recently? - Management noted that Memorial Day showed a solid start, contrasting with a challenging February [46][47] Question: What were the reasons for sales outperformance compared to guidance? - The outperformance was attributed to broad-based execution despite macroeconomic challenges [52][54] Question: Can you elaborate on the tariff expenses and pricing actions? - Management discussed nominal pricing actions taken to mitigate tariff impacts and emphasized the importance of consumer response [55][57] Question: What is the long-term outlook for Joybird stores? - Management remains optimistic about Joybird's growth potential and plans to open three to four new stores while optimizing the brand [59][62] Question: How does La-Z-Boy's pricing strategy compare to competitors? - Management believes La-Z-Boy is well-positioned due to its U.S.-based manufacturing and ability to offer personalized products at competitive prices [66][69]

Core Insights - JD.com is actively promoting its home goods section during the 618 shopping festival, offering significant discounts and a variety of products to meet consumer needs for summer home refreshment [1][8] - The campaign features collaborations with well-known brands, providing consumers with high-quality home essentials at competitive prices [1][2] Group 1: Promotions and Discounts - JD.com is offering discounts such as 50% off on home textiles and an additional 15% off on daily necessities through national subsidies [1] - Specific products highlighted include the J.Dear summer quilt priced at 185 yuan after discount, and the dual-sided cooling quilt from 富安娜 at 179 yuan [1][2] - Other promotional items include a 55-liter storage box from 禧天龙 available for 69 yuan and various home decor items at reduced prices [4][5] Group 2: Product Offerings - The summer product lineup includes high-quality cooling quilts, bedding sets, and various home decor items designed to enhance comfort during hot weather [1][2][4] - Featured products also include a multi-functional mobile storage rack from 网易严选, originally priced at 389 yuan, now available for 194 yuan [5] - Cultural and creative products are also highlighted, such as the 千里江山小夜灯, which combines practicality with cultural significance, priced at 136 yuan after discounts [6] Group 3: Consumer Engagement - Consumers are encouraged to explore the home goods section via the JD.com app, emphasizing the ease of finding quality products at attractive prices [8] - The marketing strategy focuses on creating a comfortable and aesthetically pleasing home environment, appealing to consumer desires for a refreshing summer experience [1][4]

Shares of RH soared 20% in premarket trading Friday, a day after the high-end home furnishings retailer posted a surprise profit and announced steps to offset the effects of new tariffs. https://t.co/ifRVoWwJO1 ...

The Zacks Retail-Home Furnishings industry is showing positive momentum in 2025, supported by stable mortgage rates, improved consumer confidence, and a rebound in housing activity. Digital platforms are driving growth with AR shopping tools, AI-powered personalization, and mobile-first strategies that appeal to Gen Z and millennials. Companies like The Home Depot, Inc. (HD) , Lowe's Companies (LOW) , Williams-Sonoma, Inc. (WSM) and The Lovesac Company (LOVE) have been leveraging product reinvention, effici ...

What are your expectations for RH. Um, as we just mentioned, they source very heavily from Asia, specifically from China, and we saw those tariffs ramp up. Yeah, good morning.Look, this is going to be an interesting report, okay. And the numbers are always important, okay. Like, you know, with every company, but I think what's going to be more important here is commentary from RH and the company's management team about how they are dealing with tariffs.You know, this conversation across the all the companie ...