CORTE MADERA, Calif. — Restoration Hardware Holdings Inc. (RH) on Wednesday reported fiscal first-quarter earnings of $35.7 million, up 40.3% from a year before.
The Corte Madera-based company said it had net income of $1.43 per share, up 41.6%. Earnings, adjusted for non-recurring costs, came to $1.85 per share.
The results surpassed Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of $1.54 per share.
Bloomberg's Janet Freund quoted this take from Tami Zakaria of JPMorgan: "This was a 'grand slam beat' for the company formerly known as Restoration Hardware." And as a result, the shares rose as much as 28% Thursday to the highest levels since the fourth-quarter report on March 28.
"While results and guidance were better than expected and new concept RH Beach House is off to good start, execution remains a headwind and macro concerns loom, Freund wrote, quoting analysts.
CEO Gary Friedman told analysts on a conference call that leadership has confidence in the direction of the company.
"We saw our business come back in the second half of the first quarter, and we've also got early indications on RH Beach Houses," he said, according to SeekingAlpha. "The book starts to roll-in."
Friedman said that the company's venture into luxury home delivery is bringing company savings so far of $15 million to $20 million a year, estimated to save one-third this year and two-thirds next year.
The furniture and housewares company posted revenue of $598.4 million in the period, up 7.4%. Its adjusted revenue was $598.8 million, which also beat Street forecasts. Nine analysts surveyed by Zacks expected $582.9 million.
Restoration Hardware expects full-year earnings in the range of $8.76 to $9.27 per share, with revenue in the range of $2.64 billion to $2.66 billion.
Restoration Hardware shares have fallen 21% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $94.87, a drop of 39% in the last 12 months. The stock price jumped Thursday morning, up 19% to $112.92 with three hours of trading left in the session.
North Bay Business Journal contributed Bloomberg coverage, percentage changes, Thursday stock prices and comments from CEO Gary Friedman.