RH’s shares have gained 18.9% compared with the industry’s decline of 0.6% in the past three months. Earnings estimates have also been trending upward for the current year and the next over the past 30 days, reflecting analysts' optimism over the stock's future earnings potential. RH has been exhibiting strong quarterly numbers buoyed by its focus on improving profit margins rather than chasing for sales, as well as creating a new and differentiating shopping experience with the addition of hospitality (restaurants and cafes) in new Full Line Design Galleries. The company’s efforts to redesign its supply chain network and rationalize product offerings are expected to boost growth. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book and the rollout of Design Ateliers across the company’s retail galleries are expected to drive growth in 2019 and beyond.