RH (NYSE: RH), known as Restoration Hardware, is kind of hot.
Its stock price is more than doubled in 2020 and increased by more than 5x from its March bottom.
What has changed?
1/ as the pandemic hit, people spend more time at their places – meanwhile they spend money to renovate their places.
2/ wealthy people can’t travel and don’t have much ways to spend – new luxury furnitures spending fulfills some of those void!
3/ RH is now a brand/lifestyle. It’s not just furnitures – RH has restaurants, plans to open hotels.
To put those in chart.. (light blue line is Wayfair and pink line is Hermès)
Wayfair = furniture website
Hermès = luxury brand