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Furniture retailer RH, formerly Restoration Hardware, reported fourth-quarter revenues and sales on Wednesday that exceeded Wall Street’s estimates as it continued to see strong demand for its high-end furniture and home goods.
CEO Gary Friedman said the momentum is expected to continue this year, with expected revenue growth of 15% to 20% year-over-year in 2021. That includes expected revenue growth of at least 50% in the first quarter, he said. as the company lapses a period when its brick and mortar stores were temporarily closed due to the Covid pandemic.
“ The fact that we have a booming housing market, a record stock market, low interest rates, the expectation of a recovery in the economy and the job market, combined with the recent further acceleration of our demand trends, makes us feel more rather than less. optimistic, ”Friedman said in a letter to shareholders.
RH shares skyrocketed more than 9% in out-of-hours trading.
Here’s how the company fared for the quarter ended January 30 compared to what was expected by analysts surveyed by Refinitiv:
- Earnings per share: Expected $ 5.07 vs. $ 4.76
- Revenue: $ 813 million vs. $ 798 million expected
It reported net income of $ 130.19 million, or $ 4.31 per share, compared to $ 68.43 million or $ 2.66 per share a year earlier. Excluding one-time costs, it earned $ 5.07 per share, better than the $ 4.76 analysts expected.
Net sales grew from $ 664.98 million a year earlier to $ 812.44 million. Adjusted for cost of goods sold and inventory costs associated with product recalls, the company reported revenue of $ 812.62 million, above the $ 798 million expected by analysts.
In fiscal 2020, RH’s sales increased 8% to $ 2.85 billion.
“We’re building the world’s most comprehensive and compelling collection of luxury home furnishings,” said Friedman. “The desirability and exclusivity of our product enhanced in our inspiring spaces has enabled us to gain significant market share.”
RH’s growth plans for the coming years include a further expansion into food, hospitality and even residential construction.
The company is planning a residential community in Aspen, Colorado. Later this fall, it will open its very first Guesthouse concept in New York City. Next year it will bring its stores to Europe, England and Paris.
RH further expects this year to be the largest year for product launches in the company’s history. It said it was holding back the launch of new home and outdoor collections in 2020 due to the pandemic. But it is sending a catalog to customers this week, featuring 10 new outdoor collections, it said, kicking off a massive rollout.
RH shares are up more than 375% in the past 12 months, as of Wednesday’s market close. It has a market capitalization of $ 9.3 billion.
Find the full RH press release here.