RH boosted its sales outlook for the full year, noting pent-up demand in the housing and renovation markets, as he said the economic reopening could trigger “roaring twenties-type exuberance.”
RH, formerly known as Restoration Hardware, reported record first quarter revenue of $ 860.8 million, the company said on Wednesday. Revenue was up 78% from the same period last year and exceeded expectations by nearly $ 758 million, according to a Refinitiv survey of Wall Street analysts.
The company reported profit, posting net income of $ 130.7 million or earnings of $ 4.19 per share, compared with a loss of $ 3.2 million or 17 cents per share in the quarter of l ‘last year. Adjusted earnings per share jumped to $ 4.89 per share, eclipsing analysts’ estimates of $ 4.10 per share.
The luxury home furnishings retailer said it expects to be net debt free by the end of this fiscal year and raised its revenue growth outlook to a 25-30% range, up from compared to its previous outlook of 15 to 20%. percent. That puts the company’s estimates at $ 3.5 billion for the year.
“Unmasking from the general public could lead to Roaring Twenties-type consumer exuberance,” HR chief executive Gary Friedman said in a letter to shareholders.
In addition to strong housing and renovation market forecasts, Friedman points to a record stock market, low interest rates, and the reopening of many large parts of the economy.
RH, which currently has a market cap of $ 13 billion, is looking to grow into a brand worth $ 20 billion to $ 25 billion, Friedman said, stressing the role the company’s international expansion plans will play.
“You should also be assured that we have pressure-tested our assumptions and our business risks, and are confident in our ability to maintain an adjusted operating margin above 20% in just about any economic scenario we can imagine,” a said Friedman.
The shares rose 6 percent in after-hours trading.