Restoration Hardware rebounds despite coronavirus
Luxury home furniture sales grew despite COVID-19
Here’s more proof that Americans are getting comfortable at home.
Luxury home furnishings company Restoration Hardware reported strong first-quarter earnings, despite COVID-19-induced store, restaurant and outlet closures affecting retailers nationwide. And analysts have said it's a sign that people are investing discretionary income at home with more companies allowing workers to continue being remote.
“For RH and for others in the home category, they’re seeing the benefits of nesting. Consumers are working from home and students are learning from home so as a result they’re spending more money on the home category,” Tom Forte, a senior research analyst at financial firm D.A. Davidson, told FOX Business.
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Business demand for RH has grown 7 percent into May and by 11 percent in early June compared to the same time period last year, according to the latest data from financial services company Cowen. And despite first-quarter revenue declining 19.3 percent compared to a year ago, analysts say growth is expected.
“The fact that they have a strong website and a strong e-commerce effort in addition to their physical stores enables them to do much better than expected,” Forte said.
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As homes fly off the market in wealthy suburban areas in Connecticut and in New York's upstate region and Long Island's Hamptons, high-end furniture is selling with it as homeowners invest in staying home awhile in living spaces during the pandemic.
Interest in moving out of New York, in particular, has increased 40 percent compared to the same time period last year, according to United Van Lines. And moves from New York to Connecticut jumped 74 percent between mid-March and April, compared to the same time period last year, according to the New York Times. What's more, moves to New Jersey increased 38 percent, and in Long Island increased 48 percent, according to the same data.
Outside of the luxury market, affordable furniture retailers have also grown. For example, Overstock.com's patio furniture sales increased 225 percent year over year since April.