RH Stock Climbs As Raised Revenue Outlook Offsets Q3 Profit Miss: Retail Confidence Breaks
The furniture retailer upped its full-year revenue outlook, saying it expects growth of 18-20% in the fourth quarter compared to a year ago.
FollowShares of furniture and household products retailer RH ($RH), formerly Restoration Hardware, rose on Friday even as the company reported a third-quarter earnings miss, dampening retail sentiment.
The furniture retailer upped its full-year revenue outlook, saying it expects growth of 18-20% in the fourth quarter compared to a year ago.
Adjusted earnings per share were $2.48, below consensus analyst estimates of $2.66. Revenue was $812.73 million above expectations, versus the consensus estimate of $812.5 million.
“The positive inflection of our business continued to gain momentum with third quarter demand increasing 13% despite operating in the worst housing market in 30 years,” Gary Friedman, CEO, said in a statement.
Retail sentiment on the stock turned ‘extremely bearish’ from ‘neutral’ a week ago. Message volumes moved up to ‘extremely high’.
Stocktwits users seemed disappointed.
Corte Madera, Calif.-based RH operates as a holding company through its subsidiary Restoration Hardware, which offers furniture, lighting, textiles, bathware, among other items.
Last month, Wedbush Securities upgraded RH to ‘Outperform’ from ‘Neutral’, raising its price target to $430 from $310.
RH stock is up 53% year-to-date.
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