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Restoration Hardware Reports Stronger-Than-Expected Results

RH profit registered $7.09 per share in the latest quarter, up from $3.71 last year. Analysts expected $6.44 per share in the latest quarter.

RH (Restoration Hardware)  (RH) - Get RH (Restoration Hardware) Report shares rose in after-hours trading, after the home furnishings retailer posted stronger-than-expected results for the latest quarter and raised its earnings guidance.

For the fiscal 2021 second quarter ended July 31, revenue totaled $988.86 million, up 39% from $709.28 million last year. The FactSet analyst consensus called for $973.4 million in the latest quarter.

Net income registered $227 million, or $7.09 per share, up from $98 million, or $3.71 per share a year ago. Analysts expected $6.44 per share for the latest quarter.

Last year’s results were hurt by the raging pandemic, while this year’s were boosted by the pandemic’s slowdown.

Adjusted profit hit $8.48 per share, up from $4.90 last year and topping the analyst consensus of $6.51.

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RH recently traded at $690, up 3%. It has surged 50% in the six months through Wednesday’s close.

“Based on the continued strength of our business and the power of our operating model, we are once again raising our outlook for fiscal 2021,” ending about Jan. 31, the company said.

“We now expect revenue growth of 31% to 33% versus our prior outlook of 25% to 30% and adjusted operating margin in the range of 24.9% to 25.5%, versus our prior outlook of 23.5% to 24.3%.

“We are also raising our ROIC [return on invested capital] outlook for the year to 70% versus our prior outlook of 60%.”

To be sure, “As a result of our accelerating demand trends and compounding supply chain challenges, we are delaying the launch of RH Contemporary until spring 2022,” RH said.