On November 13, Common Cents added to its RH position, which increased the position above its target allocation. RH shares were purchased at $94.9 after a sharp intraday decrease. The decrease was seemingly related to weaker-than-expected retail sales numbers.
RH has recently launched several new business lines and opened several full-line design galleries. As such, its performance is not likely correlated with aggregate market retail sales. Therefore, Common Cents views the recent pullback as unwarranted and an attractive purchase point going into the earnings call in December.
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