RH (NYSE:RH) rose sharply Thursday after the company reported better-than-expected earnings for its first quarter and raised FY2019 guidance.
The company, based in Corte Madera, Calif., generated record GAAP revenues of $598 million, an increase of 7.4%, record GAAP operating margin of 11.5%, record adjusted operating margin of 11.8%, record GAAP earnings per share of $1.43, and record adjusted diluted earnings per share of $1.85, a 53% increase versus $1.21 a year ago.
Q1 GAAP Operating Income increased 43% to $68.6 million from $48.1 million last year.
Q1 GAAP Operating Margin hiked 290 basis points to 11.5% from last year’s 8.6%.
As a result of those strong fiscal quarterly results, RH is raising our fiscal 2019 adjusted net revenue, adjusted operating income, adjusted operating margin and adjusted earnings guidance for the year.
Adjusted net income guidance went from the $2.585-$2.635 billion range to $2,642.8 to $2.662.8 billion
Guidance regarding operating income went from $309.4-$331.6 million from $332.5-$350.5 billion.
The company’s focus remains "on elevating the brand and architecting an integrated operating platform continues to result in our profit model leapfrogging past the home furnishings industry and RH becoming one of the few retailers that is growing revenues, expanding margins, increasing operating earnings, and driving significantly higher returns on invested capital."
RH is, to quote Thursday’s press release, "a curator of design, taste and style in the luxury lifestyle market. The Company offers its collections through its retail galleries across North America, the Company’s multiple Source Books, and online at RH.com, RHModern.com, RHBabyandChild.com, RHTeen.com and Waterworks.com."
Shares opened Thursday up $24.33, or 25.7%, to $119.08
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