Restoration Hardware (NYSE: RH) — known as RH — today released its first-quarter results, showing an uptick earnings compared to a year ago as the company continues to move forward with its previously reported strategy to revolutionize high-end physical retailing.
The company said its first-quarter earnings totaled $28.1 million, up from a net loss of $3.4 million a year before. Adjusted for one-time items, RH’s earnings soared to $33.5 million from $1.8 million a year ago. Sales were $557 million, a decrease of 0.8 percent from $562 million a year earlier.
“We articulated at the beginning of the year that we will be managing the business with a bias for earnings versus revenue growth in fiscal 2018,” Gary Friedman, chairman CEO said in a statement. “We will restrain ourselves from chasing low-quality sales at the expense of profitability like many in our industry, and instead focus on building an operating platform that will enable us to compete and win over the long-term.”
The company said it projects second-quarter revenue will be between $655 million and $662 million, and adjusted earnings per share between $1.70 and $1.77.
RH reported last month it soon would break ground on its new Corte Madera store and restaurant combination, reflecting its strategy to move forward on the future of high-end retail.
In today’s earnings report, the company also announced its RH Yountville store is scheduled to open early in the fall, stating it will be “reflective of the local culture, and intended to engage the global luxury clientele who visit and vacation in the Napa Valley.”
Shares closed today at $118.73, up 4.8 percent, and spiked to $143.19 in after-hours trading, up 20.6 percent.