Here's Why Restoration Hardware Holding's Inc's Growth Is Here to Stay

Restoration Hardware reported earnings recently and its revenue growth showed a significant deceleration in comparison to what investors have come to expect. Nonetheless, for investors with a long-term outlook, Restoration Hardware has a plan in place to keep growth robust, thus allowing for long-term stock gains.

Its past growth is undeniable Restoration Hardware is luxury to the core, vintage yet modern timeless designs, selling home improvement furniture and goods created by hundreds of small and medium-sized vendors who sell specifically to Restoration Hardware.

Albeit, Restoration Hardware's stock traded lower on Thursday after quarterly earnings revealed that revenue growth decelerated from prior quarters. In the second quarter, comparable sales increased just 13% year over year, which represents a significant slow-down from what investors are used to seeing, such as 20% to 30% comparable growth over the last two years. Nonetheless, when compared to other home improvement retailers, Restoration Hardware's growth is undeniable.

To explain, Restoration Hardware's most recent quarter's comparable sales growth can be seen below, compared to home improvement competitors Lumber Liquidators , Home Depot , and Lowe's Companies . In addition to the single-quarter performance, the same period for the previous two years is also included, further illustrating the degree of growth for Restoration Hardware long term.

Quarter/Year

Restoration Hardware

Lumber Liquidators

Lowe's

Home Depot

Q2/2014

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Here's Why Restoration Hardware Holding's Inc's Growth Is Here to Stay