– RH, previously known as Restoration Hardware, recorded a loss in Q1 due to increased investments and a dip in demand.
– Even with the loss, RH expects a strong bounce back driven by the increasing popularity of the home furnishing category amidst the ongoing pandemic.
– Online sales have picked up significantly, representing nearly half of RH’s total business.
– The company has invested heavily in its membership program, RH Members, and digital platforms, which it believes to be the growth drivers in the long run.
– RH has announced the opening of new galleries around the world, with plans to strengthen its presence in North America and expand to Europe.
– Its collaboration with top designers and new partnerships in the luxury segment is expected to further expedite growth.
– CEO Gary Friedman stated that the company will continue to focus on moving its brand upmarket and enhancing the customer experience.

Q1 Loss recorded by RH

Investment and dwindling demand leads to downfall

RH, formerly known as Restoration Hardware, has posted an unexpected Q1 loss. The loss is primarily attributable to an increase in investments and softer customer demand, which has been a sore spot in the time of pandemic. However, the company is quite positive and anticipates a strong turnaround.

Retailer’s Focus on Digital sales growth

In the brighter side of things, digital sales have seen a significant surge and now account for nearly half of the company’s overall revenue. The increased inclination of consumers towards online shopping has boosted the company’s sales in this segment.

Investing in Membership Program, Digital Platform

The company has made major investments in both its membership program, known as RH Members, and in its digital platforms. These investments, according to the company, are expected to be major contributors towards their growth trajectory in the coming years.

RH Eyes Global Expansion

Despite the loss, the firm has not ceased its growth approach. RH has made public its plans of opening new galleries worldwide, enhancing its presence in the home market – North America, and expanding its footprint to Europe.

Collaboration and Partnerships for Upscaled growth

The company is betting on its collaborations with top designers and its new partnerships in the luxury segment to expedite growth.

Company’s Upmarket Shift and Enhanced Customer Experience

CEO Gary Friedman has clarified that the company will continue its focus on escalating its brand upmarket and enhancing the customer experience, which he believes will be the drivers of the company’s success in the long term.

Overall, despite a bumpy Q1, RH is optimistic about substantial growth pick-up in the coming periods and is leaving no stone unturned to make it a reality.

originial article https://www.furnituretoday.com/?p=317975

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