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Furniture retailer RH, formerly Restoration Hardware, on Wednesday reported fourth-quarter earnings and sales that exceeded Wall Street estimates as it continued to see robust demand for its state-of-the-art furniture and household items.
CEO Gary Friedman said the momentum is expected to continue this year as well, with revenue forecasts rising by 15% to 20% year-over-year in 2021. This includes an estimated sales growth of at least 50% in the first quarter, he said. , as the company expires a period in which its brick shops were temporarily closed due to the Covid pandemic.
“The fact that we have a booming real estate market, a record stock market, low interest rates, the expectation of a return to the economy and jobs market, combined with the recent acceleration of our trends, makes us feel more than a little optimistic, “Friedman said in a letter to shareholders.
HR shares increased by more than 9% in trading after the program.
Here is how the company did for its quarter ended January 30, compared to what was expected by analysts, who were questioned by Refinitiv:
- Earnings per share: USD 5.07 versus USD 4.76 expected
- Revenue: $ 813 million compared to $ 798 million expected
It reported net income of $ 130.19 million, or $ 4.31 per share, up from $ 68.43 million or $ 2.66 per share a year earlier. Excluding one-time taxes, it earned $ 5.07 per share, better than analysts expected $ 4.76.
Net income rose to $ 812.44 million from $ 664.98 million a year earlier. Adjusting the cost of goods sold and inventory fees associated with product recalls, the company reported revenue of $ 812.62 million, exceeding $ 798 million anticipated by analysts.
In fiscal year 2020, HR sales rose 8% to $ 2.85 billion.
“We are building the most comprehensive and compelling collection of luxury furniture in the world,” Friedman said. “The desirability and exclusivity of our product amplified in our inspiring spaces has allowed us to gain significant market share.”
HR plans for growth in the coming years include further expansion in food, hospitality and even home construction.
The company is planning a residential community in Aspen, Colorado. Later this fall, it will open its first Guesthouse concept in New York. It will open its stores in Europe, England and Paris next year.
RH still expects this year to be the largest for product launches in the company’s history. He said he was holding back the launch of new home and outdoor collections in 2020 due to the pandemic. But this week it is sending customers a catalog in the mail, with 10 new outdoor collections, he said, launching a massive launch.
HR shares have risen more than 375% in the past 12 months since the market closed on Wednesday. It has a market cap of $ 9.3 billion.
Find the full press release from RH here.