“Bloomberg: The China Show” is your definitive source for news and analysis on the world's second-biggest economy. From politics and policy to tech and trends, David Ingles and Yvonne Man give global investors unique insight, delivering in-depth discussions with the newsmakers who matter. (Source: Bloomberg)
“Bloomberg: The China Show” is your definitive source for news and analysis on the world's second-biggest economy. From politics and policy to tech and trends, David Ingles and Yvonne Man give global investors unique insight, delivering in-depth discussions with the newsmakers who matter. (Source: Bloomberg)
President Donald Trump plans to sit in on Wednesday's Supreme Court hearing on birthright citizenship, making him the first sitting president to attend oral arguments at the nation's highest court. (Image credit: Alex Brandon)
President Donald Trump plans to sit in on Wednesday's Supreme Court hearing on birthright citizenship, making him the first sitting president to attend oral arguments at the nation's highest court. (Image credit: Alex Brandon)
JHVEPhoto/iStock Editorial via Getty Images Shares of RH ( RH ) have been a poor performer over the past year, losing about 40% of their value as the company has struggled with a slow housing market and pressure from tariffs. This has reduced demand for furniture, dampening RH’s growth prospects while also limiting margins. At the same time, its balance sheet has been weighed down by a poorly time...
JHVEPhoto/iStock Editorial via Getty Images Shares of RH ( RH ) have been a poor performer over the past year, losing about 40% of their value as the company has struggled with a slow housing market and pressure from tariffs. This has reduced demand for furniture, dampening RH’s growth prospects while also limiting margins. At the same time, its balance sheet has been weighed down by a poorly timed buyback in prior periods. Investors received more bad news along these lines Tuesday, sending shares down 17% after hours. I last covered RH in September , rating it a “ S ell” given these pressures, and that call has played out with the stock down over 35% since then. With updated financials and such pronounced underperformance, now is a good time to revisit RH. Seeking Alpha In the company’s fourth quarter , RH earned $1.53 per share, which was $0.67 below expectations even as revenue grew 4% to $843 million. Even with revenue growth, EPS was down 3% for last year. Management blamed weather and backorders for a $40 million revenue shortfall in Q4. For the full year, the company earned $6.29 per share, and full-year free cash flow was $252 million, even as working capital was a $48 million headwind. Back in September, I was targeting $8-$10 in EPS and $200-$300 million of free cash flow. Even as I was bearish on shares, RH’s earnings were weaker than I expected. Weak Housing Activity Pressures Margins Notably, gross margins contracted 180bps to 42.9%. Given weak demand for furniture, RH has had limited pricing power, reducing its ability to pass on any tariff-related costs. Now, on the bright side, RH has done a good job this year rationalizing inventory for a much more muted demand environment. Inventories are down almost 20% to $819 million. This better positions the company for a quiet spring shopping season. With a healthier inventory level, RH should not need to rely on markdowns and instead retain margins at current levels. RH has been hit by a particularly challen...
Hundreds of thousands of Rohingya refugees struggling to survive in Bangladesh's overcrowded camps will see their food assistance slashed starting on Wednesday, raising alarm throughout the increasingly desperate community. (Image credit: Mahmud Hossain Opu)
Hundreds of thousands of Rohingya refugees struggling to survive in Bangladesh's overcrowded camps will see their food assistance slashed starting on Wednesday, raising alarm throughout the increasingly desperate community. (Image credit: Mahmud Hossain Opu)
Amid ongoing talks between the Trump administration and Cuban leaders, Sandro Castro, the controversial grandson of Fidel Castro, told a major US television news network that most Cubans on the island want to embrace capitalism and that the country’s hand-picked president, Miguel Diaz-Canel, has done a poor job. His statements to CNN’s Havana correspondent, Patrick Oppmann, echoed earlier calls by...
Amid ongoing talks between the Trump administration and Cuban leaders, Sandro Castro, the controversial grandson of Fidel Castro, told a major US television news network that most Cubans on the island want to embrace capitalism and that the country’s hand-picked president, Miguel Diaz-Canel, has done a poor job. His statements to CNN’s Havana correspondent, Patrick Oppmann, echoed earlier calls by US Secretary of State Marco Rubio for a change of leadership in Havana, and seem to suggest that...
Thirteen parents and one middleman were sentenced to up to 14 months in prison by a Hong Kong court on Tuesday for paying a total of HK$1.1 million ($140,300) in bribes to secure admission to a prestigious international kindergarten. The sweeping convictions highlight Hong Kong’s zero-tolerance approach to corruption within its hyper-competitive education system, where affluent families aggressive...
Thirteen parents and one middleman were sentenced to up to 14 months in prison by a Hong Kong court on Tuesday for paying a total of HK$1.1 million ($140,300) in bribes to secure admission to a prestigious international kindergarten. The sweeping convictions highlight Hong Kong’s zero-tolerance approach to corruption within its hyper-competitive education system, where affluent families aggressively vie for limited spots that offer a direct pathway to top-tier primary and secondary schools. Following the verdict, the Independent Commission Against Corruption urged parents to reject and immediately report any solicitation of bribes.