Restoration Hardware Holdings, Inc (NYSE:RH) reported stronger-than-expected results for its second quarter and raised its 2019 guidance.
The company, based in Corte Madera, Calif., boasted record GAAP revenues of $706.5 million, an increase of 10.3%, record GAAP operating margin of 14.7%, record adjusted operating margin of 14.9%, record GAAP earnings per share of $2.86, and record adjusted diluted earnings per share of $3.20, a 59% increase versus $2.01 a year ago applying a 21% normalized tax rate in both years.
Revenues reflected "the strength of our core RH business, the performance of our new galleries, particularly RH New York, the continued expansion of RH Hospitality and planned accelerated outlet sales due to the previously mentioned closure of a 500,000-square-foot distribution facility in the fourth quarter of fiscal 2018," according to the Wednesday morning news release.
It goes on to say, "Additionally, we experienced better than expected delivered sales in the last few weeks of the quarter as a result of shipping efficiencies and lower returns due to the recent redesign of our home delivery network."
Net income increased 1% to $63.8 million, compared to the $62.9 million figure of last year.
Guidance consisted of an approximate three-point revenue reduction as a result of editing unprofitable and non-strategic businesses, namely the elimination of the remaining holiday business (one point), the elimination of fringe promotions (one point), and the transition of our rug business from a single source importer to a direct sourcing model (one point)
Shares pulled ahead 67 cents to $159.55
