Restoration Hardware shares are down 20% after the company issued the Magna Carta of whiny, red-flag, specialty retail death trap warnings.
I’ve never seen anything quite like this. It’s almost a cry for help on a personal level. It’s a Geometric proof that that RH shares are logically an unsound investment under any conditions. Three “key factors” and a cloud of smoke that used to be shareholder money…
- Offensive execution. You know what customers freaking hate? Out-of-stocks. It’s not an “outside factor”. A supply chain is the heart of retail.
- Currency fluctuations in Miami. And weakness in oil economies. So screw the money we saved on shipping when gas fell 50% because oil riggers in Miami like to pay for end tables with yuan.
- The stock market was bad in January. I can’t even… This is just… I mean… Never seen anything quite like this. Imagine if the market ever has an actual correction. RH could fall to -$20.
I’m going to the gym.
Here’s their version. My edits are below.
