Social Currency with Sammi Cohen

RH’s Luxury Mountain and House of Cards: Part 2

Oct 28, 2025
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INSIGHT

American Scale Vs. European Taste

  • RH's U.S.-scale luxury pieces don't translate well to European homes due to smaller spaces and different tastes.
  • The England and Germany expansions underperformed expectations and highlighted fragile international fit.
ANECDOTE

Paris Opening's Photogenic But Flawed Launch

  • RH timed its Paris opening with Paris Fashion Week, boosting foot traffic that CEO Gary Friedman highlighted as organic demand.
  • Restaurant reviews noted staff often didn't speak French, showing operational missteps in local execution.
INSIGHT

Buffett's Exit Was A Red Flag

  • Warren Buffett exited RH after concerns about debt, cash erosion, and restated financials undermined fundamentals.
  • Berkshire's sale signaled that RH's narrative was weakening despite its aesthetic appeal.
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