RH reported fourth-quarter earnings that surpassed analysts’ expectations. The company also provided first quarter guidance that indicates an expected growth of atleast +50%.
Home furnishings retailer’s adjusted diluted net income came in at $5.07 a share, compared to the $4.75 a share expected by analysts polled by FactSet. The earnings are also higher than the year-ago quarter’s $3.72 a share.
The company’s revenue rose to $812.4 million (from $665 million in the year-ago quarter), which beat the $797.4 million anticipated by the analysts.
For the first-quarter, RH is expecting a revenue growth of at least 50%, and adjusted operating margin in the 20% range. “With the momentum in the business, we believe it’s safe to say 2021 should result in revenue growth in the range of 15% to 20% with adjusted operating margin expanding 100 to 200 basis points and ROIC in excess of 60%,” CEO Gary G. Friedman said. Analysts are expecting revenue of $2.8 billion for the year.
CEO Gary G. Friedman mentioned a booming housing market, low interest rates, a record stock market, , expected rebound in jobs market, combined with the recent further acceleration in the company’s demand trends as factors behind increased optimism.