- RH has narrowed its full-year adjusted operating margin forecast to a range of 11.5% to 11.7%, compared to the previous range of 11% to 12%, and the market’s estimate of 11.7%.
- The fourth-quarter forecast for adjusted operating margin is between 12.2% and 13.2%, with an estimate of 12.5%.
- In the third quarter, RH reported an adjusted earnings per share (EPS) of $2.48 compared to a loss of 42 cents per share year-over-year, with the estimate being $2.64.
- RH‘s net revenue for the third quarter was $811.7 million, showing an 8.1% increase year-over-year and meeting the estimated revenue figure of $811.7 million.
- The company achieved an adjusted gross margin of 44.5%, which was lower than the previous year’s 45.3% and the estimate of 47.1%.
- RH‘s adjusted operating margin for the third quarter came in at 15%, slightly below the estimated 15.5%.
- Following the results and a shareholder letter, RH shares surged by 16% in postmarkets.
- Analyst ratings on RH include 9 buy recommendations, 10 hold recommendations, and 3 sell recommendations.
RH on Smartkarma
Analysts on Smartkarma, like Baptista Research, have been closely covering RH (Restoration Hardware) and providing valuable insights for investors. In their report titled “RH (Restoration Hardware): Brand Image Transcendence & Other Major Drivers,” Baptista Research highlighted the positive financial progress RH made during the second quarter of fiscal 2024. The report mentioned a 7% increase in demand and 3.6% revenue growth to $830 million compared to the previous year. Strategic expansions, product transformations, and investments during tough economic times were key drivers behind this growth.
Another report by Baptista Research, “RH (Restoration Hardware): How Are They Expanding Into New Markets? – Major Drivers,” discussed RH‘s first quarter results in fiscal 2023. The report noted positive demand trends and highlighted the company’s efforts in product overhauls and platform expansion, which showed promising outcomes despite challenges in the housing market. These insights provide investors with a comprehensive view of RH‘s performance and strategies for expansion.
A look at RH Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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Analysts using Smartkarma’s Smart Scores have given RH a positive long-term outlook. With top scores in Resilience and Momentum, the company is positioned well for future growth and stability. RH‘s strong performance in these areas indicates that it has a solid foundation and is likely to withstand market fluctuations while maintaining a positive trajectory.
RH, known for distributing a wide range of home furnishing products, has received favorable ratings for its Growth potential as well. While values and dividends might not be the strongest suits for the company, its focus on growth, resilience, and momentum suggests a promising future ahead in the home furnishing industry.
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Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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