Video: “Resuscitation” Hardware

RH, formerly known as Restoration Hardware, is a luxury furniture retailer. Sofas can cost well over $10,000. The retail stores are called “Design Galleries.”

  • They are meant to be “architecturally impressive” and be a “multi-level expression of the RH brand.”
  • One of their most recent Design Galleries is in the UK and it’s a 17th-century 73-acre estate.
  • They’re opening one in the luxury area of Paris.
    • It “will be a six-floor jewel-box connected by a dramatic, ornate scissor stair and a central glass elevator that will whisk you up to the fifth floor and rooftop Champagne & Caviar Bar, where you can take in views of the Eiffel Tower while enjoying our innovative menu featuring the finest Petrossian Caviars.”
    • Or you can slum-it on their second-floor dining room with an “onyx-carved bar, floors, walls and tables.”
  • They also opened a Gallery in Indianapolis which is on a 151-acre estate.
  • They have a “hospitality experience” in 14 of them which includes restaurants and wine bars.
  • We’ve been in the one in West Palm Beach and the food was really good.
    • We didn’t buy anything.
  • Their goal is to move beyond just selling high-end furniture to build an “ecosystem of Products, Places, Services and Spaces that establishes the RH brand as a global thought leader, taste and place maker.”
  • They are opening RH Guest Houses offering “privacy and luxury in the $200 billion North American hotel industry.”
  • In addition, they are launching RH Residences: “fully furnished luxury homes, condominiums and apartments.”
  • They have two luxury private jets: RH1 and RH2
  • And one luxury yacht, RH3, that can be chartered.

They say that “For the past 23 years we’ve heard others tell us what can’t be done, and for the past 23 years we’ve failed…to listen.”

  • I like it.  And while there’s a risk they may be biting off more than they can chew they certainly know what they stand for in terms of luxury.

Latest 3-month results:

  • Adjusted sales down 13.6%.
  • Adjusted operating margin (operating profit as a percentage of sales);
    • 3Q/2022: 20.8%
    • 3Q/2023: 7.3%
  • Slow home sales have impacted sales of new furniture.
    • They expect this situation to continue until “interest rates and/or home prices fall meaningfully.”
    • They also said that the home furnishings market is increasingly promotional i.e. bigger discounts (I hope my wife Cynne doesn’t read this post).

My post from September 2022

  • Restoration Hardware CEO said that “People keep saying, are we going to be in a recession?  We’re in a recession.  Anybody who thinks we’re not in a recession is crazy.”

4Q/ 2023 Results

  • Sales: -4.4%
    • PM: They were down over 15% for the whole year so it seems the declines are falling.
      • It could be that as stock markets soar, the wealthy start buying luxury furniture again.
  • “…we faced the most challenging housing market in three decades…”
    • PM: Worse than the Great Financial Crisis?
  • They had a great quote in their results:


  • PM: As central banks have thwarted the creative destruction process it’s no surprise productivity growth is grinding lower.