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ERROR: type should be string, got "https://www.barrons.com/articles/rhs-ceo-is-upbeat-on-bricks-and-mortar-retail-and-the-outlook-for-margins-51591120873\nRH’s CEO Is Upbeat on Bricks and Mortar Retail, and the Outlook for Margins\nTeresa Rivas\nJune 2, 2020 2:01 pm ET\nPhotograph by Michael Nagle/Bloomberg\nRH stock jumped 14% on Tuesday, after the home-furnishings retailer’s CEO provided an upbeat outlook in the company’s annual shareholder letter, to the cheers of analysts.\nAfter the close on Monday, RH released CEO Gary Friedman’s letter, in which he noted that RH had acted swiftly to cut costs during the Covid-19 related closures. Friedman also wrote that “due to our exceptional financial model, we believe we are well positioned to take advantage of the many opportunities that present themselves during times of dislocation.”\nThat might sound abstract, but Friedman went on to say that the company’s operations and solid execution mean that it expects operating margins to expand this year, even with the coronavirus-related challenges, and that it “now see[s] a clear path to 20% operating margin over the next few years.”\nHe also hit back at the idea that digitally native brands have a monopoly on retail growth. “It's becoming clear that retail brands birthed online desperately need a store lifeline to survive, as many are finding the variable cost of marketing an invisible store leads to an unprofitable path to the future,” Friedman said.\nNot surprisingly, his update was well received. Gordon Haskett’s Chuck Grom upgraded RH to Hold from Reduce, with a target of $220 for the stock price. He said that when he downgraded the stock in April, he underestimated the resiliency of the high-end consumer, saying that with fewer people willing to risk travel even as states reopen, the money they are saving could be directed into redecorating.\nThe theme of investment in the home, which has led him to recommend Wayfair (W), Tractor Supply (TSCO) and Williams-Sonoma (WSM), “looks to have considerable legs that counters our original view” on RH, Grom said.\nJPMorgan analyst Tami Zakaria reiterated an Overweight rating on RH and doubled her price target to $270, citing the letter. She wrote that among other positives, Friedman’s update breaks “the structural bear’s key argument that RH’s margins will crumble if sales stumble.” There is reason to be optimistic about this year’s operating margins, and RH’s “long-term margin opportunity will only be bolstered by performance in 2020,” Zakaria wrote.\nRH stock was up 14% to $242.28 in afternoon trading.\nWrite to Teresa Rivas at teresa.rivas@barrons.com"