Podcast Summary: Business of Home Podcast

Episode: The Thursday Show: Online scammers are targeting designers. Plus: RH's latest earnings call
Date: December 18, 2025
Host: Dennis Scully
Guest: Fred Niklaus (Executive Editor, Business of Home)

Overview

This episode, the final regular Thursday Show of 2025, delivers a lively year-end wrap-up on the pressing topics in the interior design industry. Dennis Scully and Fred Niklaus discuss a sophisticated new online scam targeting designers, the decline of house flipping, a deep dive into RH's (Restoration Hardware) recent earnings call, and design trends—particularly around Christmas. The conversation maintains its characteristic wit and candor, intertwining cautionary tales with industry insights.

Key Discussion Points

1. The New Online Scam Targeting Designers

Timestamps: [05:30]–[11:18]

• Incident Recap: Two designers, Bill Brockschmidt and Courtney Coleman, were scammed while shopping for antiques via Proantic, a European auction site. The scammers, posing as a reputable dealer, extracted nearly $7,000 before being found out when they requested an additional $5,000 for ‘shipping.’
  • "Someone had kind of hacked into the seller's account and assumed their identity and was passing them on to, like, a fake shipping company that they'd created." – Fred [06:29]
• Sophistication of Scams:
  • Scams are increasingly sophisticated, enabled in part by AI tools like ChatGPT, which scammers use to craft more plausible communications.
  • AI also helped the designers realize the scam: "Suddenly they employed ChatGPT to help them out. Solve the crime." – Dennis [07:07]
• Heightened Risk:
  • Direct transactions (wire transfer/cash) carry more risk than using established platforms like 1stDibs, which offer buyer protections.
  • "People should be pretty suspicious when the only means of payment are wire transfer or some kind of cash option." – Dennis [10:54]
• Takeaway:
  • Be vigilant, use secure platforms, and favor credit card payments for fraud protection.
  • "Just a good PSA to kick the podcast off: Beware." – Fred [11:13]

2. The Decline of House Flipping

Timestamps: [11:18]–[15:51]

• Market Shift:
  • House flipping, once a relatively easy path to profit and industry entry, has declined sharply due to:
    • Higher interest rates and borrowing costs
    • Increased building materials prices
    • Sluggish housing market and lower turnover
  • "These days we've seen a combination of interest rates being higher than they had been, so borrowing costs are higher. We've seen a rise in building materials, and then we've just seen this incredibly sluggish housing market." – Dennis [12:06]
• Impact on Designers:
  • The opportunity for hands-on experimentation is diminished; house flipping was a common, low-stakes ‘on ramp’ for new designers.
  • "So many designers have talked about how much their practice was informed by their own personal house flipping." – Dennis [14:46]
• Community Reactions:
  • Some celebrate the slowing of the ‘white kitchen, gray walls’ era associated with flipping for resale.
  • "Maybe fewer white kitchens. Maybe that'll be the silver lining here." – Fred [15:35]

3. RH’s (Restoration Hardware) Latest Earnings Call

Timestamps: [16:11]–[23:42]

• Results & Leadership:
  • RH reported $884M revenue, in line with expectations, but missed earnings per share forecasts by 20% due to tariffs and costly Paris expansions.
  • Gary Friedman’s leadership style is described as bold—sometimes to the discomfort of analysts.
    • "Leaders have to be comfortable making others uncomfortable because that's what leaders do." – Gary Friedman [16:27]
  • Heavy debt burden ($2.5B), with quarterly interest costs surpassing earnings.
    • "They actually paid more in interest expenses than they earned in the quarter." – Dennis [19:15]
• Strategic Uncertainty:
  • RH is juggling furniture, restaurants, events, and hospitality, causing some concern about focus.
  • Major upcoming launch: a collection inspired by ‘80s/’90s California classicism (possibly named “Estate”).
    • "My impression of it is that it's kind of this...postmodern classicism of the 1980s and 90s..." – Fred [21:00]
  • Restaurant ventures remain highly successful, e.g., Newport Beach restaurant pulls in $20M/year.
    • "If there's one thing there's no doubt of, it's the success of the restaurant business." – Dennis [23:23]

4. Christmas Trends & Design Microtrends

Timestamps: [23:44]–[32:17]

• Ralph Lauren Christmas & Gen X Nostalgia:
  • A “Ralph Lauren Christmas” has become a TikTok microtrend: think maximalism, warm, plaid, and traditional holiday decor—a nod to ‘90s Gen X nostalgia (e.g., the “Home Alone” house).
    • "Is it going to be a Ralph Lauren Christmas?" – Dennis [24:02]
    • "It's a Ralph Lauren Gen X Christmas is what it is. This is kind of the convergence of the micro...micro trend singularity almost." – Fred [24:05]
  • Gen X is described as humble and nostalgic, with a penchant for richly decorated homes.
    • "We're very humble. We don't talk about ourselves a lot, to be honest." – Dennis [24:49]
  • Some designers advocate full-on maximalism for the holidays; others still favor subtlety or minimal color.
    • "Denise McGehee was like, absolutely maximalist always." – Dennis [28:19]
• White vs. Colored Lights:
  • Ongoing debate among designers about ‘sophisticated’ white lights versus colored holiday lights.
    • "How do you do maximalist and white light? I don't know." – Dennis [30:21]
  • "If ever there's a time to go crazy, crazy, it's Christmas." – Dennis [30:54]

5. Quick Industry Notes & What Caught Their Eye

Timestamps: [32:47]–[36:49]

• Hanukkah Aesthetics:
  • Brief shoutout to Hanukkah and a call for more microtrends to celebrate the holiday.
• Celebrity Gossip in Design:
  • Noted Lily Allen’s SNL performance featured the same Zuber wallpaper as her much-discussed home, blending pop culture into the design world.
• East Fork Pottery Expansion:
  • East Fork Pottery in NC is expanding with a $2.5M investment following setbacks from Hurricane Helene.
    • "An American manufacturing business that's thriving and growing and how cool is that?" – Fred [34:22]
• Interior Design Hall of Fame:
  • Celebrates the industry’s marquee event returning to the Waldorf Astoria, lauding Cindy Allen’s contributions.

Notable Quotes

• On design’s moral dilemmas:
  • "You're servicing the uber wealthy and that's where you spend most of your time. But you walk around the streets of any city, you see a lot of homelessness...I think people do grapple with that a great deal." – Fred [02:49]
• On sustained vigilance:
  • "AI helping criminals to become better criminals...and helping people stop them." – Fred [08:04]
• On RH leadership approach:
  • "Leaders have to be comfortable making others uncomfortable because that's what leaders do." – Gary Friedman [16:27]
• On maximalist Christmas:
  • "If ever there's a time to go crazy, crazy, it's Christmas." – Dennis [30:54]
• On industry’s year-end energy:
  • "It's time to start coasting as far as I'm concerned, starting with this podcast." – Fred [00:32]

Important Timestamps

• Scam Story: [05:30]–[11:18]
• House Flipping Decline: [11:18]–[15:51]
• RH Earnings & Call: [16:11]–[23:42]
• Christmas Trends: [23:44]–[32:17]
• Industry News Round-Up: [32:47]–[36:49]

Tone & Style

The conversation is witty, collegial, and accessible, mixing well-informed industry commentary with self-deprecating humor and personal anecdotes. Both hosts maintain a tone that's light and engaging, making even financials and fraud warnings highly listenable.

Conclusion

This episode issues timely warnings for designers about the evolving threat of online scams, explores the ramifications of broader economic changes, and revels in the warmth and ritual of holiday design trends. Whether you missed the episode or want a refresher, this summary distills industry highlights, practical advice, and a splash of seasonal style. The hosts close by inviting continued listener engagement and extend warm wishes for the holidays and the new year.