The company reported adjusted diluted net income per share of $5.07 a share on revenue of $812.4 million. The company had been expected to report adjusted net income of $133.7 million, or $4.75 a share, on sales of $797.4 million, based on a FactSet survey of 17 analysts.
In the same period a year ago, the company posted earnings of $3.72 a share on sales of $665 million. It reported net income of $52.5 million.
RH CEO Gary G. Friedman said the company’s results continue to be fueled by a booming housing market, low interest rates, and resurgence in the economy as COVID-19 restrictions ease.
"The fact that we have a booming housing market, a record stock market, low interest rates, the expectation of a rebound in the economy and jobs market, combined with the recent further acceleration in our demand trends, has us feeling more rather than less optimistic," Friedman said in a letter to shareholders.
“It’s hard not to forecast first-quarter revenue growth of at least 50%, and adjusted operating margin in the 20% range,” Friedman added. “With the momentum in the business, we believe it’s safe to say 2021 should result in revenue growth in the range of 15% to 20% with adjusted operating margin expanding 100 to 200 basis points and ROIC in excess of 60%,” he added.
For the year, analysts project revenue of $2.8 billion.
RH changed its name from Restoration Hardware in 2017.
Shares of RH rose $44.89, or 9.25%, to $530 in after-hours trading.
The stock has risen 8.7% since the company last reported earnings on Dec. 9.
Retail sales fell in February amid the impact of storms and power outages in Texas and as the December stimulus check surge faded. But with a new round of stimulus checks underway this month and winter easing, spending seems likely to bounce back.