RH shares rally after company beats earnings expectations, raises guidance
Shares of RH rallied late Monday after the company formerly known as Restoration Hardware reported first-quarter earnings above Wall Street expectations and increased its guidance. RH said it earned $28.1 million, or $1.11 a share, in the first quarter, versus a loss of $3.4 million, or 9 cents a share, a year ago. Adjusted for one-time items, RH said it earned $33.5 million, or $1.33 a share, compared with $1.8 million, or 5 cents a share, a year ago. Sales fell 0.8% to $557 million, from $562 million. Analysts polled by FactSet had expected adjusted earnings of $1.01 a share on sales of $563 million for the company. "We articulated at the beginning of the year that we will be managing the business with a bias for earnings versus revenue growth in fiscal 2018," the company said in a statement. "We will restrain ourselves from chasing low-quality sales at the expense of profitability like many in our industry, and instead focus on building an operating platform that will enable us to compete and win over the long term." RH said it expects adjusted net revenues in a range between $2.53 billion and $2.57 billion, and adjusted per-share earnings between $6.34 and $6.83 for the year. For the second quarter, the company sees revenue between $655 million and $662 million, and adjusted EPS between $1.70 and $1.77. Shares of RH ended the regular trading session up 4.8%.
