Founded in 2002, (NYSE: W) is an e-commerce platform that intends to provide shoppers with an extensive offering of home products at attractive prices. RH (NYSE: RH) also offers home furnishings and decor, but it focuses on a luxury experience for affluent shoppers, allowing the company to command higher profit margins.

Granted, RH's financials took a step back in its fiscal 2023 (ended Feb. 3). The company's net revenue fell nearly 16% for the year, while its operating margin shrank eight percentage points to 12.1%.

But according to management, some of these declines are a result of their plan. The company wants to expand beyond luxury home goods to various areas of hospitality, including overnight accommodations and foodservice.

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Source Fool.com