This Luxury Brand Could Provide Lavish Returns
Restoration Hardware Holdings, Inc (NYSE: RH) is a luxury furniture company predominantly in the United States with international expansion on deck. The company was formerly known as Restoration Hardware and rebranded itself while changing to a subscription model in 2016.
RH CEO Gary Freidman is fond of quoting Bernard Arnault, CEO of Louis Vuitton Moet Hennessy (OTC: LVMUY), that "Luxury goods are the only area it is possible to make luxury margins." This is certainly true of RH and shareholders have enjoyed quite a ride since the rebranding in 2016.
Up until then, the stock was floundering. The company then pivoted from cash-and-carry retail to a subscription-based model. Customers are able to view furniture in luxurious galleries and then order through the company's catalogue today. When management announced the change it was not well received. However, an investment of $10,000 the day after the announcement in February of 2016 would be worth over $159,000 today. With demand strong, international expansion coming, and positive results there are still gains to be made for long-term investors.
Source Fool.com
