Shares of Restoration Hardware (RH) are up 20% after the high-end furniture retailer reported better-than-expected financial results.
RH, as the company is commonly known, reported earnings per share of $1.69 U.S., which beat Wall Street’s consensus forecast of $1.56 U.S.
Revenue in what was the company’s fiscal second quarter totaled $829.7 million U.S., topping estimates of $824.5 million U.S.
Management attributed the strong results to improving demand for its home furnishings as the U.S. housing market gathers steam with interest rate cuts expected in coming months.
RH’s business boomed during the pandemic as people sheltering in place at home undertook renovations and bought new furniture and other household items.
However, the company’s business has been challenged over the past few years as high inflation and rising interest rates led to a slowdown in the housing market.
Looking ahead, RH lowered its revenue growth for this fiscal year to a range of 5% to 7%, down from a previous outlook that called for 8% to 10% growth.
Investors appear to be looking past the lowered guidance and focusing instead on the strong financial results and talk of rising demand for RH’s products.
Before today (Sept. 13), the stock of RH had been down 17% over the last 12 months and trading at $256.49 U.S. per share.
