Retail audit: catering equipment

The consumer discretionary sector is a fascinating thing at times like these and the results companies have reported over the past 24 months lend a lot of story to this picture. So, let’s take a look at household furniture, but not just any old household furniture. Let’s take a look at none other than Restoration Hardware.

With its premium furnishings and designs and its mission to provide “an exceptionally well-marketed world of high quality textiles, furniture, lighting, bath, hardware, and entertainment”, Restoration Hardware sets itself apart of the lot. And despite the hurdles, it looks like this has been a good year for the company.

Earlier this month, on December 9, Restoration Hardware reported strong earnings for the third quarter of 2021, which included an increase in earnings per share ($ 7.03 vs. consensus at $ 6.59) an increase in revenue and an increase in earnings per share. 19% sales growth to $ 1.01 billion. On call, Chairman and CEO Gary Friedman praised the company’s enthusiastic journey.

Regarding plans delayed due to complications from COVID-19, he said, “we have refused to take shelter and shrink, not allowing our culture to be shaped by stay-at-home mandates or let the collaboration be replaced by Zoom calls in isolation. No leader of the HR team has made his summer residence, his permanent residence. There were no debates whether we should return to work, only discussions about when we could. We have wasted no time in falling victim to the current reality. We have chosen to be visionaries, destroying today’s reality to create tomorrow’s future.

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Friedman continued, “We have used our time to reinvent ourselves and reinvent ourselves once again. We said let’s not forget that this was when Restoration Hardware unleashed the biggest demonstration of innovation our industry has ever seen. This is why we have referred to 2022 as the year of novelty and it will include the following: the introduction of RH Contemporary, the most significant new product launch in our history, including a source book of over 500 pages, an independent RH Contemporary gallery, a dedicated website and a national advertising campaign.

While consumer enthusiasm and a dedicated management team form part of the story, analyst sentiment completes and completes the package when it comes to the business. Their optimism over Restoration Hardware was clear in their updated notes. Here are some report ideas that stand out from the following earnings:

1. High-end nest feather set is strong.

Many consumers have worked on their homes in one way or another over the past few months. Restoration Hardware, with its high-end offerings, has also capitalized on this trend. On December 9, CFRA analyst Kenneth Leon updated the sentiment and wrote: “We think the home lifestyle is a centuries-old, multi-year trend where families want to spend more time at home. to live, work and play. Restoration Hardware has an impressive brand and merchandise offering that can be scaled up and increase profitability unlike most other home furnishings retailers.

2. The novelty factor.

With several headwinds behind it, Restoration Hardware is ready to launch its new offerings and Cowen & Company’s

Max Rakhlenko praised him, noting that the company “is set to introduce some important novelties next year in products, stores, digital and lifestyle.”

He continues, “From a timing perspective, Restoration Hardware plans to launch Contemporary in late spring, followed by new product launches in Interiors and Modern in late spring or early summer. We expect Contemporary will get its own source book and believe other collections will likely get a book as well. In addition, Restoration Hardware will launch the first phase of its new digital platform and, during the same period, will launch RH1, RH2 and RH3. In addition, management plans to launch RH England in late spring and early summer depending on weather conditions. Additionally, management plans to launch RH In-Your-Home in the near term, and we believe they may introduce a second reference book in the fall.

3. Patient customers are successful.

If patience is a virtue, sign up Restoration Hardware enthusiasts. Cristina Fernandez of Telsey Advisory Group noted that customers considered the delay in getting their goods to be always worth the extra wait. “While Restoration Hardware experiences delays in importing products (particularly from Vietnam, which accounts for 27% of imports), its consumers are willing to wait, and Restoration Hardware has been able to pass prices on to offset costs. additional transport costs. ” she writes.

In the last expense breakdown, I noted that the home furnishings category had a good November according to the Census Bureau. Restoration Hardware’s results and enthusiasm absolutely bolster this report

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