RH RH

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
55/100
Moderate

Ranked against 51 peers in Specialty Retail

About RH

RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. It operates through three segments: RH Segment, Waterworks, and Real Estate. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen … Full RH analysis →

Key strengths

  • Cash Generation Consistent Cash generation is consistent (score 0.80), indicating reliable business model.
  • Cost Leadership Position Operating margin at 82.4th percentile with strong OpEx control demonstrates cost leadership.

Key risks

  • Elevated Debt Risk Debt serviceability is weak (score 0.30), raising refinancing risk.
  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.35), suggesting cyclical exposure or competitive pressure.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

Upgrade to unlock the signals and evidence behind each defense.

Premium access

Unlock full defense analysis

Get key signals, strengths, and risks for every moat dimension.

Upgrade to Premium Unlock all moat defenses and evidence.

Pricing Power

Moderate
60
Premium

Signals, strengths and risks for Pricing Power

Premium

Signals, strengths and risks for Cost Advantage

Premium

Signals, strengths and risks for Customer Stickiness

Premium

Signals, strengths and risks for Capital Efficiency

Premium

Signals, strengths and risks for Resilience

Premium

Signals, strengths and risks for Scale & Market Position

Where RH ranks in Specialty Retail

RH ranks #21 of 52 scored companies in Specialty Retail by moat score — the top 40%. The widest moat in the group is Winmark Corporation (WINA) at 83/100.

# Company Moat score Rating
17 Dick's Sporting Goods Inc DKS 61/100 Moderate
18 MINISO Group Holding Limited MNSO 60/100 Moderate
19 Murphy USA Inc. MUSA 57/100 Moderate
20 HOMESTOLIFE LTD HTLM 56/100 Moderate
21 RH RH 55/100 Moderate
22 Barnes & Noble Education, Inc BNED 54/100 Moderate
23 Tokyo Lifestyle Co., Ltd. TKLF 54/100 Moderate
24 Savers Value Village, Inc. SVV 53/100 Moderate
25 Tandy Leather Factory, Inc. TLF 52/100 Moderate

See every General Corporate company ranked by moat score →

How RH scores on the Corporate Default defenses

Pricing Power

Score 60 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 67 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 67 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 44 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 40 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 53 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding RH's moat

What is RH's moat score?

RH (RH) scores 55 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #21 of 52 scored companies in Specialty Retail, the top 40%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 51 companies in Specialty Retail. Its strongest defense is Customer Stickiness (67/100) and its weakest is Resilience (40/100).

How does RH compare with other Specialty Retail companies?

RH ranks #21 of 52 scored companies in Specialty Retail by moat score. The widest moat in Specialty Retail is Winmark Corporation (WINA) at 83/100. The companies ranked closest are HOMESTOLIFE LTD (HTLM) at 56 just above it and Barnes & Noble Education, Inc (BNED) at 54 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 51 companies in Specialty Retail. The defenses are then weighted to produce the overall score out of 100.

Why is RH scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for RH?

The Corporate Default template measures 6 defenses, and RH scores: Pricing Power (60), Cost Advantage (67), Customer Stickiness (67), Capital Efficiency (44), Resilience (40), Scale & Market Position (53). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

Send Feedback
Please select a category.
0/1000