RH, the home furnishing company formerly known as Restoration Hardware, has overachieved again, soundly beating analysts’ estimates.
Wednesday, CEO Gary Friedman was optimistic the run would continue as he reported his company’s fourth-quarter earnings and sales.
The success fits with the plight of the home owner today. People want to upgrade the décor they’ve seen all too often – every day – during the pandemic.
The demand for RH’s high-end furniture and home products has revenue projections up as much as 20% year over year in 2021.
Friedman was so emboldened, in fact, that he used “anniversary” as a verb in his earnings-report letter to shareholders.
“To our people, partners, and shareholders
“As we anniversary what has been one of the most difficult years in recent history, and as we begin to see the light at the end of the dark tunnel of this deadly and disruptive virus, we do so with a greater appreciation for our freedom and the simple gestures in life like a handshake or a hug. …
“The fact that we have a booming housing market, a record stock market, low interest rates, the expectation of a rebound in the economy and jobs market, combined with the recent further acceleration in our demand trends, has us feeling more rather than less optimistic.”
RH shares, which traded at around $84 a year ago, reached $540 earlier this month and were trading at $508 by midday on Thursday.
The company numbers exceeded analyst expectations solicited by Refinitiv:
Earnings per share: $5.07 vs. $4.76 expected
Revenue: $813 million vs. $798 million expected
Excluding one-time charges, it earned $5.07 per share vs. $4.76 expected.
In fiscal 2020, RH’s sales climbed 8% to $2.85 billion.
RH plans to expand further into food, hospitality and even home building in the coming years.