On Wednesday, shares of luxury furniture retailer Restoration Hardware (NYSE:RH) are popping in after-hours trading, up about 11% to $92.50 per share as of 5:03 PM EST, after the company released better-than-expected third quarter and fiscal 2017 guidance.
Restoration Hardware now expects adjusted net income in the range of $24 million to $24.5 million compared to the previous range of $16 million to $19 million. This is despite a negative impact of roughly $1.3 million from Hurricanes Harvey and Irma.
Looking at adjusted diluted earnings per share, RH projects EPS in the range of $1.02 to $1.04, well above its prior expectations of 68 cents to 80 cents per share.
Revenues for the third quarter are anticipated to be approximately $592.5 million compared to prior guidance of revenues in the range of $575 million to $590 million. This new guidance reflects an increase of 8% year-over-year.
For fiscal 2017, RH also raised its guidance in the range of $82 million to $87 million, “despite the company’s decision to delay the opening of its New York Design Gallery.”
Additionally, the retailer provided an upgraded outlook for its fiscal 2017 fourth quarter. It expects revenues in the range of $655 million to $680 million, with adjusted net income in the range of $37 million to $41 million.
“Over the past 18 months, we transformed our business from a promotional to a membership model that is enhancing our brand, streamlining our operations, and improving the customer experience. Simultaneously we began the redesign of our supply chain network, rationalizing our product offer, and transitioning inventory into fewer facilities, creating a more capital efficient model,” said CEO Gary Friedman.
Restoration Hardware’s Investor Day is tomorrow in West Palm Beach. The retailer has been building unique, inventory-less galleries that showcase their furniture lines, a concept that has been a huge success for RH. It opened its first gallery in Chicago's Gold Coast neighborhood.
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Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report
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