RH launched incremental members only promotion, says KeyBanc

KeyBanc analyst Bradley Thomas notes that RH‘s (RH) main promotional/savings program is its membership program, which offers a standard 25% savings on everything, and points out that RH launched an incremental members only promotion today that raises the savings on the Outdoor category to 35% from 25% normally. The promotion is likely a result of unfavorable weather, but potentially from the weaker consumer confidence, says the analyst, who generally views incremental promotions as “a sign of weakness rather than strength.” The firm has a Sector Weight rating on RH shares.