RH RH has opened the doors of its new gallery, RH Newport Beach, The Gallery at Fashion Island, to the Southern California market.

The new location is supposed to be the company’s most dramatic, immersive and brand-defining physical location to date, redefining the aspects of physical retailing.

RH stock lost 7% during Monday’s trading session.

More on RH’s New Gallery Opening

Spread across an area of 97,000 square feet, The Gallery at Fashion Island stands on four floors, offering indoor and outdoor spaces with views of the Pacific Ocean.

The first two floors from the ground will showcase artistic lifestyle installations of RH Collections with exterior terraces and courtyards exhibiting the largest assortment of RH Outdoor collections in North America. These floors will also feature collections from RH Baby & Child and RH TEEN, along with delicate versions of the brand’s iconic sofas, sectionals and chairs. The third floor unveils the company’s first fully integrated Waterworks Showroom, flaunting a handpicked assortment of bath and kitchen fittings, fixtures, accessories, lighting and surfaces. Also, the floor will have an interactive RH Interior Design Atelier, offering unique professional design services.

The fourth floor, with two adjacent Wine Bars, offers a collection of wines and champagne, with a double floating staircase leading to the rooftop, which houses a 270-seat indoor-outdoor rooftop restaurant. RH introduced the RH Ocean Grill restaurant in RH Newport Beach, serving an array of seafood menus alongside luxury specialties including caviar.

RH believes that the innovative spirit of RH Newport Beach will help it penetrate and retain the Southern California markets, reflecting prospects of customer base expansion and growth trends.

Platform Expansion Driving RH’s Growth

One of RH’s several strategic initiatives highlights the expansion of its physical retail platform. Its focus on opening large, immersive Design Galleries, which blur the line between retail and hospitality, defines its efforts to increase market penetration.

With the calendar year 2024 coming to an end, the company expects to open RH Montecito Gallery, which is a reimagination of the Historic Fire House located in Santa Barbara. The new opening will feature The RH Firehouse Grill, an indoor-outdoor Courtyard Restaurant with fireplaces and fountains, a Wine & Barista Bar, and an Interior Design Atelier. Furthermore, the company is optimistic about the debut of RH Interior Design Studio in Palm Desert, CA.

In the calendar year 2025, RH plans to open seven North American Galleries comprising Montreal, Manhasset, Detroit, Oklahoma City, Los Gatos, Palm Desert and Aspen. Also, it expects to open two International Galleries during the year, which include RH Paris and RH London.

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Shares of this luxury retailer in the home furnishing space have gained 25.4% in the past three months against the Hoya Capital Housing ETF’s (HOMZ) 5% decline. The ongoing investments in transforming RH’s product lines and expanding its platform are likely to continue backing its growth prospects.

RH’s Zacks Rank & Key Picks

RH currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Consumer Staples sector.

Tyson Foods, Inc. TSN presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a trailing four-quarter earnings surprise of 57%, on average. Shares of TSN have rallied 8.3% in the past six months. The Zacks Consensus Estimate for TSN’s fiscal 2025 sales and earnings per share (EPS) implies an increase of 2% and 13.2%, respectively, from the prior-year levels.

United Natural Foods, Inc. UNFI currently sports a Zacks Rank of 1. UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average. The stock has surged 104.3% in the past six months.

The consensus estimate for UNFI’s fiscal 2025 EPS indicates an increase of 414.3% from a year ago.

Ingredion Incorporated INGR presently sports a Zacks Rank of 1. INGR delivered a trailing four-quarter earnings surprise of 9.5%, on average. The stock has gained 23.6% in the past six months.

The Zacks Consensus Estimate for INGR’s 2025 sales and EPS indicates an increase of 1.3% and 5.5%, respectively, from a year ago.

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