On LinkedIn, a Restoration Hardware employee states that their department (ocean freight operations) has a consistent annual growth of 12%. This is much lower than the company’s reported revenue COGS growth (20%+). I would note that RH has been increasingly sourcing more and more of its product from overseas:
- (EDIT: 4/2/2015) The 2011 S-1 states: Based on total dollar volume of purchases for fiscal 2010, approximately 73% of our products were sourced in Asia, the majority of which originated from China, 16% from the United States, 8% from Europe and the remainder from other regions.
- The FY2013 10-K states: Based on total dollar volume of purchases for fiscal 2013, approximately 69% of our products were sourced in Asia, the majority of which originated from China, 26% from the United States and the remainder from other regions.
- The FY2014 10-K states: Based on total dollar volume of purchases for fiscal 2014, approximately 84% of our products were sourced in Asia, the majority of which originated from China, 10% from the United States and the remainder from other regions.
Adjusting for the lower domestic sourcing would suggest that RH’s total overall buying may have grown at less than 12% annualized.