logo
  

RH Swings To Q1 Profit, Lifts FY Outlook; Shares Up 7%

RH (RH), the luxury furniture business, Wednesday posted a profit for the first quarter, fuelled by a 78% increase in revenues. Earnings also trumped Wall Street view, as did revenues. Based on its results, the company increased its outlook for the full year. Following the news, shares of the company gained nearly 7% in the extended sessions.

Net income for the quarter was $130 million or $4.19 per share, compared to a loss of $3.2 million or $0.17 loss per share.

Excluding one-time items, income for the quarter rose to $142.3 million or $4.89 per share from $29.9 million or $1.27 per share in the same quarter last year. Seventeen analysts polled by Thomson Reuters expected the earnings to be $4.10 per share. Analyst estimates usually exclude the special items.

Revenue for the quarter increased 78% to $860.8 million from $482.9 million last year. Revenues trumped Street's consensus view of $757.65 million.

Looking forward, the company increased its full-year guidance after the strong performance. It now expects revenue growth of 25% to 30%, up from the prior view of 15% to 20%. For the second quarter, the company is eyeing a revenue growth of 35% to 37%. Eighteen analysts are looking for a 19.7% growth in revenue for the full year.

Apart from the multifold boost in revenue, another factor that propelled the higher income was the drop in expenses to $13 million from $40 million last year.

The company also broke the news of beginning its global expansion in 2022 with the opening of RH England, The Gallery at Aynhoe Park, and RH Paris, The Gallery on the Champs-Élysées.

The chairman and CEO of the company, Gary G. Friedman, said, "While fiscal 2021 will surely be a tale of two halves, there are many data points that lead us to feel optimistic that our strong performance will continue through the second half of 2021 with growth reaccelerating in fiscal 2022 and beyond."

The shares for the company are currently trading at $652.85, 6.79%, or $41.52 higher than $611.33 at the bell on Wednesday after opening at $628.83. In the 52-week period, the shares have ranged between $226.82 and $733.05 per share.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Flavor maker McCormick & Co., Inc. is recalling certain McCormick and Frank's brand seasoning products citing possible salmonella risk, the U.S. Food and Drug Administration said. The recall involves McCormick Perfect Pinch Italian Seasoning, McCormick Culinary Italian Seasoning and Frank's RedHot Buffalo Ranch Seasoning. Drug major Pfizer Inc. raised Wednesday its outlook for fiscal 2021 earnings and revenues following strong second quarter results that exceeded market estimates. According to the company, the upward revision in full-year outlook, for the second quarter in a row, reflects its updated expectations for contributions to 2021 performance from both BNT162b2, the Pfizer-BioNTech SE COVID-19 vaccine. While reporting financial results for the second quarter on Wednesday, biopharmaceutical company Bristol-Myers Squibb Co. (BMY) reaffirmed its adjusted earnings and revenue growth guidance for the full-year 2021. For fiscal 2021, the company now projects earnings in a range of $3.18 to $3.38 per share,...
RELATED NEWS
Follow RTT