NEW YORK (TheStreet) -- Shares of Restoration Hardware(RH) - Get Report closed down by 4.41% to $83.73 on Friday, despite topping analysts' third quarter earnings expectations yesterday.

The Corte Madera, CA-based luxury home furnishings retailer reported third quarter earnings of 65 cents per share versus analysts' 63 cents per share expectations.

Revenue for the period increased by 10% year over year to $532.41 million, missing analysts' $539.89 million revenue expectations.

"Since our IPO in 2012, we have outperformed our peers by a wide margin, while remaining focused on our two value-driving strategies-the expansion of our brand and the transformation of our retail stores," said CEO Gary Friedman.

The company also upped its full year net revenue guidance to between $2.17 billion and $2.18 billion from its previous forecast between $2.158 billion and $2.178 billion expectations.

Earnings for the year are expected to be between $3.11 and $3.16 per share, up from the company's previous view between $3.06 and $3.16 per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate RESTORATION HARDWARE HLDNGS as a Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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