RH is expanding into Europe, and we’re positive on that move. Historically, when U.S. retailers go international, things get tricky. Usually, they’re selling other companies’ products, but RH sells its own. Demand for the product is every bit as strong in Europe as in the U.S

The stock trades for about 30 times next fiscal year’s earnings , and we see the company growing earnings in the midteens for the next several years. We believe the stock price will compound in line with earnings growth. Return on equity is above 40%