RH - Restoration Hardware

[Gregmal]

Sometimes a trade is just a trade. This basically played out as perfectly as one could have drawn it up. Of course we can backfill some genius investment thesis into the reasoning of "why", but sensibly, the play was an obvious low hanging fruit for someone positioned to make it happen. Einhorn has done it with DDS a few times.

[Jurgis]

Basically a more of the same quarter.
Revenues up, inventories down, profitability up and leverage measures down. What's not to like?
Conceptually, they are planning to continue on climbing the luxury mountain. Next step: Paris, London and the "adjoining" countries.
I think they should try Milan.
On the call, they referred to the correlation between their concept stores (they don't really call them stores, the sites are showrooms) and the Apple platform concept. Their moat is still based on the definition of their brand as an intermediate with taste and style.
Opinion unchanged.

Mr. Big should have apprenticed to these guys.

[Jurgis]

that's ambitious they think they can become a $20B company selling furniture.
Gary

W or RH - place your bets!