Luxury home decor retailer RH reports 10% Q2 revenue growth, eyes opening of Marin County store
Restoration Hardware Holdings Inc. (NYSE: RH) on Tuesday reported fiscal second-quarter profit of $63.8 million, up 1.35% from a year before.
On a per-share basis, the Corte Madera company said it had net income of $2.86 per share for the quarter ended Aug. 3, up 24.9% over 12 months. Earnings, adjusted for nonrecurring costs, came to $3.20 per share.
The results beat Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.70 per share.
"Despite the increase in tariffs and some negative macro trends, we remain optimistic that our business momentum will continue, supported by a number of positive factors...," wrote CEO Gary Freidman in a letter to investors. Those factors include recently mailed catalogues and openings of new stores, called galleries, he added.
RH Marin, a gallery under construcxion at the Village at Corte Madera shopping center, is among three set to open in the second half of the fiscal year, Freidman said. Five to seven openings are planned next fiscal year, with seven more in fiscal 2021.
The furniture and housewares company posted revenue of $706.5 million in the period, also beating Street forecasts. Six analysts surveyed by Zacks expected $698 million. Revenue growth was 10.3% from a year before.
For the current quarter ending in November, Restoration Hardware expects its per-share earnings to range from $2.08 to $2.18. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.83.
The company said it expects revenue in the range of $672 million to $678 million for the fiscal third quarter. Analysts surveyed by Zacks had expected revenue of $669 million.
Restoration Hardware expects full-year earnings in the range of $10.53 to $10.76 per share, with revenue ranging from $2.68 billion to $2.69 billion.
Restoration Hardware shares have increased 33% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $158.83, an increase of 26% in the last 12 months.
After jumping over 5% just after the close of trading Tuesday to $167.21, the share price post-market slid 2.5% lower to $154.80 at 6 p.m. Pacific Time.
North Bay Business Journal contributed to this report.