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The furniture retailer RH, formerly Restoration Hardware, on Wednesday reported fourth-quarter earnings and sales that topped Wall Street estimates, as it continued to see robust demand for its high-end furniture and home wares.
CEO Gary Friedman said the momentum is expected to continue into this year, too, with revenue forecast to grow between 15% and 20% year over year in 2021. That includes expected sales growth of at least 50% in the first quarter, he said.
“The fact that we have a booming housing market, a record stock market, low interest rates, the expectation of a rebound in the economy and jobs market, combined with the recent further acceleration in our demand trends, has us feeling more rather than less optimistic,” Friedman said in a letter to shareholders.
RH shares shot up more than 9% in after-hours trading.
Here’s how the company did for its quarter ended Jan. 30 compared with what was expected by analysts, which were polled by Refinitiv:
- Earnings per share: $5.07 vs. $4.76 expected
- Revenue: $813 million vs. $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 charges, it earned $5.07 per share, better than the $4.76 expected by analysts.
Net revenue grew to $812.44 million from $664.98 million a year earlier. Adjusting for cost of goods sold and inventory charges associated with product recalls, the company reported revenue of $812.62 million, topping the $798 million anticipated by analysts.
In fiscal 2020, RH’s sales climbed 8% to $2.850 billion.
RH shares are up more than 375% over the past 12 months, as of Wednesday’s market close. It has a market cap of $9.3 billion.
Find the full press release from RH here.
This story is developing. Check back for updates.