RH reports tonight. Very strong into the print. Long from much
lower as a core holding. Holding into # but may trim exposure
25-50%; won't on a very strong close. This is a highly shorted
stock with improving fundamentals. We saw a squeeze after the last
quarter's #; that could be on the table again.
It's a very interesting transformation - adding huge square
footage at each store and the sales per sq.ft. are ramping higher.
But it is taking time. There could be some hangover from the port
strike & WSM comps were awful. But I like the overall trend a
lot. Just booking some short put profits and leaving a little put
protection in place.
Thank you, Teamsters! "Restoration Hardware said it expects the
West Coast port disruption to hurt per-share earnings by 5 cents to
6 cents and sales by $10 million to $20 million in the current
quarter." Only about 5% of RH's business is cash & carry, which
means most of that 5-6 will get pushed into the next quarter rather
than lost (William Sonoma's problem with the port closure was huge
lost c&c business) - traffic is not an issue, just the wait
times for orders. Looks like an opportunity either to take off the
protective puts higher in the morning or re-establish the
spreads.
Posted by hamvestor on 26th of Mar 2015 at 06:39 pm
Just for the record, it was the Longshoremen's union, not the
Teamsters, who was the major player in the port strike. BTW, I used
to negotiate contracts with the Teamsters (I was representing
management), and they were a pleasure to deal with compared to the
ILA.
RH reports tonight. Very strong
Posted by a_l_ on 26th of Mar 2015 at 01:23 pm
RH reports tonight. Very strong into the print. Long from much lower as a core holding. Holding into # but may trim exposure 25-50%; won't on a very strong close. This is a highly shorted stock with improving fundamentals. We saw a squeeze after the last quarter's #; that could be on the table again.
FWIW, am reducing exposure on
Posted by a_l_ on 26th of Mar 2015 at 03:27 pm
FWIW, am reducing exposure on RH into the bell.
That may be mistake. My wife
Posted by puma on 26th of Mar 2015 at 03:29 pm
That may be mistake. My wife has been in there a lot lately![Smile Smile](https://breakpointtrades.com/wp-content/themes/Financeguru/images/smiley-smile.gif)
It's a very interesting transformation
Posted by a_l_ on 26th of Mar 2015 at 03:33 pm
It's a very interesting transformation - adding huge square footage at each store and the sales per sq.ft. are ramping higher. But it is taking time. There could be some hangover from the port strike & WSM comps were awful. But I like the overall trend a lot. Just booking some short put profits and leaving a little put protection in place.
Thank you, Teamsters! "Restoration Hardware
Posted by a_l_ on 26th of Mar 2015 at 06:30 pm
Thank you, Teamsters! "Restoration Hardware said it expects the West Coast port disruption to hurt per-share earnings by 5 cents to 6 cents and sales by $10 million to $20 million in the current quarter." Only about 5% of RH's business is cash & carry, which means most of that 5-6 will get pushed into the next quarter rather than lost (William Sonoma's problem with the port closure was huge lost c&c business) - traffic is not an issue, just the wait times for orders. Looks like an opportunity either to take off the protective puts higher in the morning or re-establish the spreads.
Just for the record, it
Posted by hamvestor on 26th of Mar 2015 at 06:39 pm
Just for the record, it was the Longshoremen's union, not the Teamsters, who was the major player in the port strike. BTW, I used to negotiate contracts with the Teamsters (I was representing management), and they were a pleasure to deal with compared to the ILA.
Good to know. I have
Posted by a_l_ on 26th of Mar 2015 at 09:28 pm
Good to know. I have a friend who was offered a no-show 6-figure job with the ILA coming out of USC about 30 years ago. He turned it down in disgust.