RH Acquires Three Trade-Focused Brands to Shape Its Next Aesthetic

RH has strategically acquired three established trade-focused companies: Dennis & Leen, Formations, and Michael Taylor Designs. These acquisitions mark RH's first since 2022 and signal a deliberate move to cultivate a new design direction, building upon the success of its RH Modern and RH Contemporary lines. The company aims to blend historical inspiration with contemporary appeal, anticipating a resurgence of 1980s and early '90s eclectic styles.

Key Takeaways

• RH has acquired Dennis & Leen, Formations, and Michael Taylor Designs.
• The acquisitions are intended to define RH's next major aesthetic, succeeding RH Modern and RH Contemporary.
• The new direction will focus on traditional architecture with a modern, hip interpretation.
• RH plans to leverage the expertise and intellectual property of the acquired brands to scale production of intricate, high-quality designs.
• The move comes as RH prepares to open RH Paris and navigates a challenging domestic market.

A New Design Vision

RH Chairman and CEO Gary Friedman views these acquisitions as crucial for developing the company's next significant aesthetic. He believes that trends often emerge from historical periods, with estate sales and the antiques market influencing high-end design. Friedman anticipates a return to eclecticism inspired by the 1980s and early '90s, a style that combined traditional elements with modern twists. "I think we swung the pendulum pretty far with Modern, pretty far with Contemporary. When we look at our assortment today, there’s just not enough classic," Friedman stated. He sees an opportunity to fill a void in the market for "really cool, hip, traditional designs" that complement the prevalent traditional architecture in North America.

Integrating Acquired Expertise

Dennis & Leen and Formations, which operate from conjoined showrooms in Los Angeles, are known for their ability to translate historical forms into contemporary contexts, often drawing inspiration from 17th-century French antiques. Formations, founded in 1986, evolved into a full-line brand, while Dennis & Leen, established earlier, shared a similar historical appreciation. Friedman highlighted the appeal of understanding "how to make goods at that level—these are really intricate and beautiful products, and they’re harder [to fabricate] than modern or contemporary." RH aims to leverage this expertise to teach factories how to scale these detailed designs.

Michael Taylor Designs, co-founded by the iconic decorator Michael Taylor, brings a legacy of original pieces and intellectual property. After Taylor's death, the business grew with historically inspired hits like the Diamond table and a spin on the classic Klismos chair. Friedman expressed his personal admiration for Taylor's work, stating, "It’s investing in a level of design, capability and authenticity." RH plans to reproduce these iconic pieces with the same quality and design integrity.

Strategic Timing and Future Outlook

These acquisitions occur during a busy period for RH, with the upcoming opening of RH Paris, a key component of its European expansion. Despite a stagnant housing market and tariff uncertainties in the U.S., Friedman remains focused on future growth. He believes this new design direction will be a "really big idea" and a significant trendsetter for the company. The acquired brands will continue to serve the trade, ensuring a seamless integration of their established client base and expertise into RH's broader strategy.

Sources

• RH quietly acquires 3 trade-focused companies, Business of Home.