Added to YB: 2024-09-18
Pitch date: 2024-09-16
RH [neutral]
RH
-51.93%
current return
Author Info
No bio for this author
Company Info
RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain.
Market Cap
$3.7B
Pitch Price
$337.01
Price Target
N/A
Dividend
N/A
EV/EBITDA
10.92
P/E
37.22
EV/Sales
2.28
Sector
Specialty Retail
Category
N/A
RH's Optimistic Forecasts at Odds with Slowing Demand and Rising Risks
RH (valuation too high for risks): New product performance uncertain. 24% inventory build, yet customer deposits down 8%. Demand up 7% Q2, tied to promos. Missed forecasts. History of overly optimistic guidance. Balance sheet concerns: ABL drawdown, low AP turnover. Int'l expansion drag increasing. High valuation (53x FY1 P/E) despite risks. Potential downside to 30-35x P/E.
Read full article (7 min)