Restoration Hardware

Shares of RH (RH - Get Report) moved higher Thursday after the upscale home furnishings chain raised its guidance for 2019 earnings and closed a big loan deal.

The stock of the former Restoration Hardware rose 1.3% to $173.66 as the Corte Madera, Calif., retailer wrapped up the sale of $350 million in 0% convertible notes due 2024.

RH plans to use the proceeds from the sale of the convertible no-interest notes to pay $200 million in second-lien debt outstanding and reduce the amount owed under its credit lines.

By enabling RH to retire debt that carried rates higher than the flat rate of the $350 million convertible note issue it is closing, the move boosts its bottom line, the company said.

RH lifted its earnings guidance for fiscal 2019 to $10.78 to $11.01 a share, higher than the $10.72-a-share estimate of analysts.

RH's decision to raise its guidance for the year comes as the stock of the luxury home-furnishings chain has been outperforming the industry and the market.

Shares of RH have nearly doubled in value since June 6, when they were trading at $88.08.

The retailer in September reported quarterly earnings of $3.20 a share, beating the $2.70-a-share estimate of analysts surveyed by Zacks Investment Research.