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.
That may be mistake. My wife
RH reports tonight. Very strong into the print. Long from ...
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
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.