Gary Friedman, CEO of RH, the luxury furniture retailer formerly known as Restoration Hardware, has been known for his unconventional management style and grand visions for the company. His approach, while sometimes perplexing Wall Street, has helped shape the company into a leader in the luxury furniture market.
In a recent profile by the New York Times, Friedman’s unique management habits were highlighted. He is known to avoid typical meetings, instead favoring exhaustive “adventures” with executives. These sessions can stretch on for 10 hours or more.
Wall Street’s Love-Hate Relationship with RH
During the early stages of the pandemic, when remote work and low mortgage rates led to a housing and renovation boom, RH’s shares soared. The company caught the attention of Warren Buffett in 2019, with his Berkshire Hathaway conglomerate purchasing shares.
However, in 2022, the Federal Reserve’s decision to raise rates led to higher borrowing costs and a cooling housing market. Consequently, RH’s stock tumbled, falling more than 70% from its 2021 peak to its 2022 low. Berkshire Hathaway subsequently sold off its entire stake in RH in 2023.
Friedman’s Ambitious Plans for RH
Despite these setbacks, Friedman remains ambitious. He continues to open more RH retail “galleries” while also expanding into branded hotels and furnished homes. These properties are not only sold but also managed by the company.
Friedman expects his team to fully commit to the company’s culture. This includes participating in the “Daily Values Adventure,” where they are asked to discuss instances when their ego hindered progress.
Not Without Controversy
- RH’s demanding culture and Friedman’s management style have drawn criticism. The company has received low scores from employees on sites like Comparably.
- However, Friedman dismisses these criticisms, pointing out that many employees have stayed with the company for years and some even returned after leaving.
- He admits to being tough on subordinates who miss their goals, saying, “Generally, I don’t yell at people—I yell at the problem.”
- His management style has earned him the nickname “The Sun” – offering warmth on good days and burning heat on bad ones.
Despite the challenges, Friedman continues to chart his own course, pushing RH towards his vision of creating “an endless reflection of hope, inspiration, and love that will ignite the human spirit and change the world.”
For Suwannee County locals, this story serves as a reminder of the complex world of corporate management and the influence of CEOs like Gary Friedman on the broader economy and financial markets.
