NEW YORK (TheStreet) -- Restoration Hardware (RH - Get Report) shares are up 4.05% to $94.75 in morning trading on Friday following the release of its second quarter earnings results after yesterday's market close.
The Corte Madera, CA-based furnishing retailer reported second quarter net income of $29.9 million or 85 cents per share on revenue of $506.9 million.
Analysts on average were expecting the company to report earnings of 83 cents per share on revenue of $502.3 million.
For the full year the company said that it expects to earn between $3.06 per share and $3.16 per share on revenue between $2.16 billion and $2.18 billion.
"We believe that the sheer scope of what we are about to unveil over the course of just three months - September through November - illustrates our execution capabilities, our unmatched level of innovation, and the power of our multi-channel platform, said CEO Gary Friedman.
"We will be launching two significant new businesses, RH Modern and RH Teen - each with their own Source Book, website, and a significant retail presence. Also during this period, we have four, revolutionary next generation Design Galleries opening in Chicago, Denver, Tampa and Austin, as well as a standalone RH Modern gallery in Los Angeles, and RH Baby & Child galleries in West Palm Beach and Greenwich," Friedman added.
TheStreet Ratings team rates RESTORATION HARDWARE HLDNGS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RESTORATION HARDWARE HLDNGS (RH) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."RH data by YCharts