Restoration hardware — bastion of $13,000 rugs and $1,600 gilded mirrors — is having a bad day – the washington post electricity vs magnetism venn diagram


While retailers catering to middle-class shoppers have had a rough go in recent years, things had been cushy at Restoration Hardware: It was ringing up big sales from shoppers so affluent that chief executive Gary Friedman once talked about the need for the chain electricity 4th grade worksheet to fine-tune its strategy for helping customers furnish their second and third homes. And the furniture store’s design sensibility became something of an aesthetic pacesetter for an abundance of lower-priced imitators.

The first half of the year was bleak enough that the company on Wednesday evening slashed electricity notes physics its sales outlook for the year. Comparable sales — a measure of online sales and sales at stores open more than a year — were up 4 percent, but that marked a dramatic slowdown from the 15 percent year-over-year growth RH saw in the same quarter last year. The disappointing results sent its stock into a tailspin Thursday, sliding 20 percent from the previous day. The stock is down electricity 80s song nearly 64 percent this year.

Restoration Hardware executives stressed to investors this week that they believe that the storm clouds are largely short term: They say they have largely worked through kinks in the supply chain and have new tactics up their sleeve for courting kite electricity generation the upscale home furnishings customer. But the situation underscores how volatile today’s retailing climate is and how varied the pressures are in the fight for sales and market share.

Restoration Hardware had announced last year that it was launching RH Modern, a new line of furnishings that electricity projects for high school students had a more contemporary vibe than the history-inspired pieces that have long been its hallmark. The plan is to open some stand-alone RH Modern stores and, in some cases, to add RH Modern shop-in-shops at its existing locations. The retailer is hopeful it would attract a much wider range of shoppers with the new offering, and indeed, customers seem to like the new goods. At a New York flagship store where RH Modern now encompasses the entire street-level floor, executives said sales are up 35 percent.

But perhaps most interesting, the retailer has recently launched a membership program it calls RH Grey Card, in which customers k gas station jobs pay $100 per year to receive 25 percent off all of their purchases and a few other perks such as complementary interior design services. With this offering, the retailer seems to be gambling that it can keep a halo of exclusivity over its brand while still giving people a value-oriented nudge to spend.

One of the most unique aspects of Restoration Hardware’s current strategy is how dismissive p gasol stats it is of e-commerce, a platform that most retailers are rushing to embrace. In the latest installment of the highly-produced videos that Friedman releases each quarter for investors, he said, “It’s not about the Internet gas after eating.” Instead, Friedman believes that Restoration Hardware needs to double down on transforming its physical retail presence into lavish galleries. (In the same video, he showed a picture of the exterior of a mall-based Saks Fifth Avenue store, declaring, “Most [stores], like this one, look like bomb shelters.”)

That’s why Restoration Hardware’s Chicago store is outfitted with a stage for emitra electricity bill payment performances, a wine vault and a sprawling courtyard cafe in an airy atrium speckled with olive trees. That location, like other new ones in the chain, is massive. Traditional Restoration Hardware outposts, Friedman says, showcase only about 10 percent of the assortment. With the big stores, he hopes to show off more pieces and, in turn, boost sales.