Jon Quast

And management does point out, as Matt alluded to, that it is growing or

producing results that are better than many of its peers.

So, I guess, give it a little bit of credit there.

It's a hard market to be in.

But what is interesting is, the numbers do look particularly weak right now because of what Matt just said.

Management isn't very conservative when it's building up to the long-term vision of the company, and it's continuing to invest like business is booming.

Look, we are long-term investors.

We do like it when our companies take a long-term view.

But I think that does contribute to the numbers perhaps looking worse than they need to be right now, because it is investing still so much in what it wants to do.

Now, what does it want to do?

RH aims for $5.8 billion in revenue in 2030.

That would be up 70% in five years from what it just turned in in 2025.

In the past, it's had operating margins of around 20.

That's what it's aiming for.

Definitely not there now.

But look, if things go swimmingly, according to management's plan, there's a scenario where RH could be generating $1 billion in operating income within five years.

It only has a market cap of $2 billion right now.

But the thing is, as Matt pointed out,

It is using debt.

It is using a sale-leaseback strategy, which kind of ups the ante a little bit.