New RH Galleries Will Drive Long-Term Growth Despite Near-Term Tariff Struggles -- Market Talk

Dow Jones
2025/09/12

1054 GMT - Tariffs will continue to be a significant challenge for RH in the near-term, but down the road the company's new galleries should drive significant revenue gains, say KeyBanc analysts. The company has 30 newer galleries today and the potential for 70 more, which could allow it to pass $6 billion in revenue. "New galleries increase market-level sales 50%-300%, boost margins, and are increasingly more capital efficient," the analysts say. The company's new Paris gallery is off to a strong start and could eventually perform comparably to top U.S. galleries despite the significant investment required for international expansion, the analysts say. (nicholas.miller@wsj.com)

 

(END) Dow Jones Newswires

September 12, 2025 06:54 ET (10:54 GMT)

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