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Shares of high-end furniture retailer RH rose sharply in expanded trading on Wednesday after the company beat analysts’ profits and sales estimates for the first quarter of fiscal policy.
RH also increased its year-round outlook and built on the momentum it sees in the luxury homes category, giving a stronger-than-expected outlook in Q2.
In a letter to shareholders, CEO Gary Friedman said the rest of this year “will definitely be a two-half story”
The company’s share recently rose by more than 7%.
Here’s how RH fared in the quarter ending May 1, compared to what analysts expected using Refinitive estimates:
- Earnings per Stock: $ 4.89 adjusted against $ 4.10 expected
- Revenue: $ 861 million against $ 758 million expected
RH’s net income for the first fiscal quarter grew to $ 130.7 million or $ 4.19 per share. Shares compared to a loss of $ 3.2 million or 17 cents per share. Share a year earlier. Excluding one-time adjustments, it earned $ 4.89 per share. Stock, which topped expectations at $ 4.10.
Revenue rose 78% to $ 861 million from $ 483 million the year before. It also beat expectations of $ 758 million.
Friedman said a strong housing and renovation market, a record stock market, low interest rates and the reopening of the U.S. economy all bode well for the company in the coming quarters.
RH increased its fiscal outlook for 2021 for revenue growth to a range of 25% to 30% compared to a previous range of 15% to 20%. Analysts had been looking for a 19.7% increase year over year.
In the second quarter of fiscal policy, RH expects revenue to grow by 35% to 37%. Analysts had been looking for a jump of 27.2%.
The company is preparing to launch its global expansion in the spring of 2022 starting with the UK. To drive future growth, it is also considering expanding to new services, potentially to areas such as landscaping. It currently offers interior design advice.
RH shares have risen by approximately 37% year to date. The company has a market value of approx. $ 13 billion.
Find the full earnings press release from RH here.