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Citron's Andrew Left No Longer Long On RH: 'Knowing When To Sell'

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Citron's Andrew Left No Longer Long On RH: 'Knowing When To Sell'
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RH (NYSE: RH) was trading down 4 percent Wednesday after Citron Research’s announced he sold out of his stake in the stock exactly one year after buying in.

"You have to have some form of experience-type retail [to win].... You'll see it [at Restoration Hardware],” Citron’s Andrew Left told CNBC on Oct. 28, 2016. “Price points at Restoration Hardware are pretty decent when you're looking at high-end furniture."

Left considers the field relatively safe from Amazon.com, Inc. (NASDAQ: AMZN) and other e-commerce disruptors, according to reports.

The RH Turnaround

RH is trading up 164.6 percent year-to-date after having waned 61.4 percent throughout 2016.

Even before riding a major boost from its second-quarter earnings beat, RH catalyzed its turnaround with inventory initiatives aimed to improve supply chain efficiency. In this way, it has slowly earned the markets’ respect.

“We are increasingly convinced that the threat of demand pull forward from well-above expected outlet sales is potentially overstated,” Deutsche Bank analyst Adam Sindler wrote in a June note. “We remain above consensus on comps and total sales for FY17-FY19.”

Sindler’s bullishness soon echoed throughout the Street. In September, Buckingham Research upgraded the stock to Buy and predicted mid-single-digit revenue growth, while Loop Capital conceded earnings beyond expectations.

RH raised its 2017 sales guidance last quarter to better align with analyst estimates.

Related Link: Restoration Hardware Restored To A Buy Rating At Deutsche

Posted-In: Andrew Left Citron ResearchShort Sellers Movers Trading Ideas Best of Benzinga

 

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