Franchising, retail, business
09/09/2015
When Restoration Hardware (NYSE:RH) reports results for its July-ending second quarter after the market close on Thursday, its new RH Modern collection and RH Teen concept will have yet to roll out.
They'll do it later this fall. But sales and profits are expected to be good enough without them.
Analysts expect earnings to climb 25% over last year to 84 cents per share on revenue of $503 million, a 16% year-over-year increase, according to Thomson Reuters, continuing a string of double-digit growth as it opens larger stores and expands into new categories such as rugs, linens and lighting.
At the end of the first quarter, which ended May 2, the upscale home furnishings company known for updated classics operated 67 retail galleries, including six large-format Galleries and one next-generation Design Gallery, as well as three Baby & Child Galleries. New next-generation megastores are expected to open by year end in Tampa, Fla.; Austin, Texas; Chicago; and Denver.
Analysts view the new modern and teen concepts favorably because they broaden the company's appeal. Wells Fargo estimates that RH Teen has the potential to generate $100 million in sales over time. RH Teen will come with its own 200-page Source Book, website and dedicated retail space in next-generation Design Galleries.
RH Modern will have its own 300-page Source Book catalog, website and major retail presence.
Rival Williams-Sonoma's (NYSE:WSM) teen concept at its Pottery Barn brand, known as PBteen, took in $261 million in revenue last year and has been growing in the mid-single to low double digits over the last few years, Wells Fargo noted.
Restoration Hardware is the top-ranked company in IBD's retail-home furnishings group, with a Composite Rating of 94 out of a best-possible 99. Williams-Sonoma has a 75 rating, Ethan Allen Interiors (NYSE:ETH) a 74.
Williams-Sonoma operates its namesake kitchen and home stores as well as Pottery Barn, Pottery Barn Kids, PBteen and West Elm, which is meant to appeal to millennial shoppers.
Restoration Hardware was trading 1% higher Tuesday afternoon but was still 12% off its intraday high of 105.98 set on July 23. Williams-Sonoma was up around 2%, Ethan Allen around 1%. They've been benefitting from a steady recovery in the housing market.
L’idea di creare un blog giornaliero per il mondo del retail nasce grazie ai continui feedback positivi che riceviamo dalle notizie condivise attraverso diversi canali.
Rivolto a tutte le tipologie di distribuzione presenti sul mercato: dal dettaglio ai grandi mall, dal commercio locale e nazionale alle catene di negozi internazionali, investitori, ai nostri fedeli clienti e chiunque altro è realmente interessato allo studio e all'approfondimento su ciò che guida il comportamento dei consumatori. E' anche un blog per tutti coloro i quali lavorano già nel mondo del Retail.
Verranno condivise le loro esperienze, le loro attitudini e le loro experties. Un blog di condivisione, quindi.
Ospitato sul sito della BRD Consulting, che da decenni lavora nel mondo distributivo Italiano ed Internazionale, il blog Store in & out riguarderà il business, i marchi e i comportamenti d'acquisto propri di alcune delle più grandi aziende.
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