Shares of Restoration Hardware Holdings, Inc. (RH) gained 9 percent in extended trade Thursday after the home furnishings retailer reported better-than-expected results for the fourth quarter and also forecast results for the first quarter as well as fiscal 2013 above analysts' estimates.
The company reported a loss for the fourth quarter, reflecting charges related to its initial public offering. However, excluding items, adjusted earnings as well as revenue beat analysts' estimates.
Corte Madera, California-based Restoration Hardware's net loss for the fourth quarter was $28.36 million or $0.79 per share, compared to net earnings of $24.05 million or in the prior-year period. Net loss for the quarter includes one-time IPO related charges.
Adjusted net income was $24.16 million or $0.64 per share, compared to $19.49 million in the year-ago quarter. On average, six analysts polled by Thomson Reuters expected the company to earn $0.60 per share. Analysts' estimates typically exclude special items.
Net revenues for the quarter grew 30 percent to $398.05 million from $305.24 million in the prior-year period and beat analysts' consensus estimate of $390.86 million. Comparable store sales increased 26 percent on top of a 22 percent increase in the same period last year.
Direct revenues rose 41 percent, on top of a 23 percent increase for the year-ago period.
For fiscal 2012, Restoration Hardware reported net loss of $12.79 million or $1.36 per share, compared to net income of $20.59 million in the previous year. Adjusted net earnings were $37.74 million or $1.01 per share, compared to $26.45 million in the prior year. Analysts expected the company to earn $1.03 per share for the year.
Net revenues rose 25 percent to $1.19 billion from $958.08 million in the previous year. Analysts had a consensus revenue estimate of $1.03 billion.
Comparable store sales for the year increased 28 percent on top of a 25 percent increase last year.
Looking ahead to the first quarter, Restoration Hardware forecast earnings in a range of loss of $0.02 per share to breakeven, and net revenues in a range of $280 million to $285 million. Street expects the company to report loss of $0.04 per share for the quarter on revenues of $253.08 million.
For fiscal 2013, Restoration Hardware projects earnings in a range of $1.29 to $1.37 per share and revenue of $1.42 billion to $1.45 billion. Analysts expect the company to earn $1.28 per share for the year on revenues of $1.37 billion.
RH closed Thursday's trading at $32.75, down $1.60 or 4.66 percent on a volume of 292,515 shares. In after-hours, the stock further gained $2.95 or 9.01 percent to $35.70.
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