HR CEO Gary Friedman told CNBC on Thursday that he was confident in the company’s expansion vision, even if some may question the luxury furniture retailer’s moves into the European market or new industries.
“It takes a long time to build something extraordinary in this world and we still feel like we’re warming up, honestly,” Friedman said in an interview with Jim Cramer on “Mad Money.” “We’re more excited than ever and we see more opportunities than we’ve ever seen.”
RH, formerly known as Hardware Restoration, plans to open stores in England and Paris next year as part of the California-based company’s international expansion.
The company is also moving into the hospitality industry (already operating restaurants) with the debut of its RH Guesthouse concept in New York City. It is scheduled to open this fall, followed by an RH Guesthouse in Aspen, Colorado, next year. Friedman refuses to label them as hotels, saying HR is trying to “create a new market for privacy and luxury.”
In Aspen, HR also plans to develop homes in what it calls its first “HR ecosystem”.
“A lot of the things we’re going to do will only be initially misunderstood. And until they are seen and respected … then you can’t ignore them,” Friedman said.
Friedman is confident in the company’s ability to succeed in Europe, and points to HR’s experience in sourcing products from the region, along with its position as a leading seller of bedding and bedding. Belgian in the world.
Friedman acknowledged that, on the surface, HR’s foray into new industries such as residential real estate may seem strange to a company traditionally seen as a retailer. “But if you’re trying to build one of the most admired brands in the world, if you want to do something extraordinary, you can’t take a normal path,” he said.
Friedman’s appearance Thursday in “Mad Money” came a day after HR posted fourth-quarter revenue and earnings that exceeded analysts ’expectations. HR ended fiscal 2020 with sales of $ 2.85 billion. In a letter to shareholders, Friedman wrote that HR believes that “the data supports the RH brand reaching $ 5-6 billion in North America and $ 20 billion to $ 25 billion worldwide.”
HR shares rose 9% in Thursday’s session, closing at $ 529.08 each. Shares have risen nearly 400% in the last twelve months.