Restoration Hardware: Climbing the Luxury Mountain

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(00:02:27) - (First question) - Restoration Hardware’s relevance in the market

(00:04:37) - The origin story of Restoration Hardware

(00:07:58) - Insight into Gary Friedman’s backstory and his entry into RH

(00:09:52) - The current RH business model and how Gary has shaped that over time 

(00:17:14) - Their unique marketing funnels 

(00:19:47) - Their move into the luxury brand market

(00:21:24) - Explaining how the product collections are made up

(00:22:32) - Updated supplier relations model 

(00:25:25) - Insight into the RH sales model

(00:28:04) - Overview of the membership model and how it impacts the business

(00:31:42) - Peers within the industry that are using similar business models

(00:32:49) - Cyclical macro exposure sales growth over time

(00:34:09) - Their operations and logistics model

(00:39:03) - The impact of COVID-19

(00:40:15) - Expected working capital for RH and other furniture peers

(00:42:36) - Peer group average margin growth

(00:45:56) - Key decisions and investments that need to go right

(00:48:41) - European housing sizes and issues with American furniture

(00:49:52) - Capital allocation history within RH

(00:51:15) - How RH stays in style as decor tastes change over time

(00:54:02) - His overall insight towards Gary’s ideas and risky business experiments

(00:55:37) - His capital structure perspective for the future 

(00:58:09) - How RH is moving into the luxury market as other brands move out 

(00:59:09) - Lessons learned from studying Restoration Hardware