(RH) - Get Report soared 24.34% in trading Thursday to $117.99 after the retailer formerly known as Restoration Hardware raised its fiscal-year sales and profit guidance following first-quarter earnings that easily beat Wall Street forecasts.
The home furnishings company said it expects adjusted earnings for the year of $8.76 to $9.27 a share on revenue of between $2.64 billion and $2.66 billion. Wall Street analysts forecast fiscal-year earnings of $8.33 a share on sales of $2.6 billion.
Adjusted earnings in the company's first quarter were $1.85 a share on revenue of $598.4 million, an increase of 7.4% from a year earlier. Analysts had been expecting earnings of $1.53 a share on revenue of $584 million.
"Our focus on elevating the brand and architecting an integrated operating platform continues to result in our profit model leapfrogging past the home furnishings industry and RH becoming one of the few retailers that is growing revenues, expanding margins, increasing operating earnings, and driving significantly higher returns on invested capital," the company said in a statement.
RH also addressed the rising trade tensions between Washington and Beijing saying that it doesn't believe the "current trade climate will impair our ability to achieve our stated financial goals." The company said it has moved "certain production and new product development out of China" and was "exploring new partnerships and expanding our own manufacturing facilities in the United States."
China accounted for around 40% of RH's merchandise purchases in 2017, according to The Wall Street Journal. The company has raised prices on selected products to offset tariffs the U.S. has imposed on China-made goods.