Stock Market Watch

Restoration Hardware Swings To Q2 Loss But Lifts Outlook (RH)

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Restoration Hardware Holdings Inc. (NYSE: RH) reported late last evening that it swung into fiscal second quarter loss as expenses rose. The bottom line was also weighed by charges linked to stock based compensation, masking solid sales growth.

However, the Company lifted its full-year outlook. Restoration Hardware now expects earnings of $1.65 to $1.70 a share on revenue of $1.56 billion to $1.58 billion, up from its previous estimate for earnings of $1.41 to $1.47 a share on revenue of $1.47 billion to $1.51 billion.

For the current quarter, the Company anticipates adjusted earnings of 27 cents to 29 cents a share on revenue of $385 million to $395 million. Analysts polled by Thomson Reuters were anticipating earnings of 16 cents a share on revenue of $365 million.

For the latest period ended August 3, the Company posted a loss of $17.8 million or 46 cents a share compared to a net income of $17.6 million.

Stripping out onetime items such as stock based compensation, the adjusted earnings stood at 49 cents a share up from 33 cents a share, in the year-earlier quarter. Revenue rose 30% to $382.1 million.

Earlier the Company had provided earnings guidance of 40 to 42 cents a share on revenue of $375 million to $380 million.

Gross margin narrowed to 36.4% from 39% while overhead expenses climbed 77%.

Same-store-sales soared 26%.

 








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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