The company reported disappointing fourth-quarter earnings and revenue, which the company attributed to shipping delays related to the Red Sea conflict and “severe” January weather.
The luxury furniture and hospitality retailer, however, struck a positive note about the current year. It expects demand to pick up through 2024, forecasting sales growth of eight per cent to ten per cent.
“While we expect business conditions to remain challenging until interest rates ease and the housing market begins to rebound, we expect our demand trends to accelerate throughout fiscal 2024,” RH Chairman and CEO Gary Friedman said in his quarterly letter to shareholders.
The company will continue to expand its design galleries (stores) with the opening of five new locations in 2024, including three in California (Palo Alto, Newport Beach and Montecito). Other new locations include Raleigh, North Carolina and Cleveland. All the outposts feature restaurants and wine bars, as well as design offices.
