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.
good note-taking
They should be punished just for sending out those phone book sized catalogs.
there stores are getting larger and they are in prime locations… $/sq foot must be high
Restoration Hardware is a place to go walk around and dream. It’s not a place to buy things.
Why pay triple the price for something? Especially when the sales associates treat you like you’re an inconvenience to their day. Fuck that. I’d rather just post a YouTube video of lighting money on fire.
I can’t get over how bad this is. I’m stunned at how bad some of these communications with Wall St are.
you can’t charge $15k was freaking couches then be out of stock. And who the hell is their customer base?
I can’t decide if I should just keep blasting these releases into the Stone Age on a case by case basis or offer myself out as a sort of traveling ghost fixer for horrible PR teams (like the hostile “Elf” writer in the movie of the same name).
I’ve ignored RH since the last time it blew-up… No idea if they’re always this insane.
On the other hand, Target was amazing.
@matt is spot on … the wenches employed there do exactly that.
perhaps they should stop making ugly as shit “desks” that are shaped and riveted like an airplane wing. or stop selling bars that look more like makeshift nukes from the 1950s.
Pretty sure they import most their products and the $ has been rallying for some time, they should be making a profit on the strength of that dollar run alone!, if they can make a profit with a $ this strong, something wrong.
Their products are also difficult to make because they need the wow factor, supply will always be an issue out of Asia of these kinds of products.
The sales people are generally horrible staffed with middle aged divas (men and women) thinking they are all interior designers. I only buy two items there…. Towels and sheets from Italy. The rest looks like props from Howard Hughes era The Aviator
OK, they blew the quarter badly; worse than badly actually. But I’m not sure I get the hate for the product. I own a fair bit of RH stuff for the beach house – 4 couches, 2 chairs and a DR table. What we received was well made, good quality and was all on sale at half price or less, with free delivery. It was all comparable to other mid-to-high end furniture stores without the pain of dealing with furniture salesdroids, since we bought it all on line.