Sears Holdings Corporation (SHLD), Williams-Sonoma, Inc. (WSM): Will Rising Rates Crush Restoration Hardware Holdings Inc (RH) Earnings?

Going forward, Restoration Hardware faces a couple of threats. One comes from competition, as Pottery Barn and Pier 1 Imports, Inc. (NYSE:PIR) learn from the success that Restoration Hardware has had and refine their own offerings to respond to shoppers’ wants and demands. Pier 1 has also benefited from the housing recovery, and its own mix of items tries to capture both upscale and mainstream homeowners. But perhaps more importantly, Restoration Hardware and its entire industry depend on the sustainability of the new housing boom. So far, higher rates haven’t led to a slowdown in housing-market activity, but if it eventually comes, Restoration’s prospects could start to get a bit dimmer.

In the Restoration Hardware earnings report, watch to see if the company can sustain its huge growth in revenue. With plans to expand into as many as 20 key new markets, the up-and-coming retailer has plenty of growth avenues left ahead of it.

The article Will Rising Rates Crush Restoration Hardware Earnings? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Williams-Sonoma.

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