RH Reports Preliminary Results Affected by Ongoing Product Rationalization; Shares Overvalued
No-moat RH offered an updated outlook for its first quarter, which includes faster-than-anticipated revenue growth and rising gross margin pressure as the team continues to rationalize stock-keeping units. The company now expects sales of $558 million-$562 million, implying a 23% growth rate at the midpoint, versus the prior outlook of $530 million-$545 million and our internal estimate of around $532 million. However, 6 points of the growth was from the 2016 addition of Waterworks, and another ...RH is a holding company. Together with its subsidiaries, the company is a retailer in the home furnishings marketplace. The company provides merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and child and teen furnishings. The company positions its Galleries as showrooms for its brand, while its Source Books and websites act as virtual extensions of its stores. The company's business is integrated across its various channels of distribution, consisting of its stores, Source Books, and websites. The company operates its retail Galleries throughout the U.S. and Canada, and its Waterworks showrooms throughout the U.S. and in the U.K.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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