RH, formerly known as Restoration Hardware, reported its Q1 2024 earnings on June 13, 2024. The company missed earnings per share (EPS) estimates, reporting -$0.40 against an expected -$0.12. However, RH slightly exceeded revenue expectations with $727 million compared to the estimated $725.15 million. Despite the revenue beat, RH's stock dropped 11% after hours. The company reaffirmed its FY25 revenue guidance but provided a lower-than-expected outlook for Q2, with revenue growth projected at 3-4% versus an estimated 7.5%. CEO Gary Friedman stated that aggressive investments during a downturn have pressured short-term results but positioned the company for long-term opportunities. The company's operating margin for Q1 stood at 6.5%, in line with guidance but down from 15% last year. Inventory levels increased by 5% year-over-year, which is higher than expected Q2 revenue growth. RH also reported demand growth of 12%-14%, an adjusted operating margin of 13%-14%, and an increased backlog of $110 million to $130 million.
$RH Earnings Recap - Betting on 2H Rev $727M vs $725M est OM 6.5% vs 7% est and 15% last year EPS -$0.40 vs -$0.10 est Sees 2Q: Rev +3-4% vs +7.5% est OM 11-12% vs 16.5% est Despite these big shortfalls, reiterates FY guide (almost comical?). Stock -10% AH. https://t.co/O8cIUIeWBZ
$RH revs slightly ahead, OMs in-line; reit prior F'24 tgts but a bit more backend loaded; invs up a bit faster than revs; GMs held flat seq- doubt this changes much but listen to call, dig more- a bit of waiting for Gadot with rates, etc
RH misses EPS, beats on revenue. CEO: "While aggressively investing during a downturn has put pressure on short-term results, it also positions us to capitalize on the long-term opportunities that present themselves during times of disruption & dislocation" $RH: -8% AH https://t.co/MPtquNLMhR
RH misses by $0.27, reports revs in-line; guides Q2 revs below consensus; reaffirms FY25 revs guidance $RH
$RH Q1'24 Earnings Highlights: ๐น EPS: -$0.40 (Est. -$0.12) ๐ด ๐น Revenue: $727M (Est. $725.15M) ๐ข FY'24 Outlook: ๐น Demand Growth: 12%-14% ๐น Revenue Growth: 8%-10% ๐ ๐น Increased Backlog: $110M-$130M (Revenue lagging demand) ๐ ๐น Adjusted Operating Margin: 13%-14% ๐นโฆ
$RH 1Q24: rev INLINE (down 2% vs. down LSD guidance) but demand MISSED (up 3% vs. MSD guidance). EBIT INLINE (6.5% vs. 6%-7% guidance). MISS EPS (-$0.40 vs. -$0.12 consensus). Inventory likely STILL CONCERNING at up 5% y/y, which is higher than expected 2Q revenue growth.โฆ
$RH RH misses on eps, beats on rev. -11% AH https://t.co/0Mz5xJfU0w
$RH Outlook. Stock -11% https://t.co/ChGlkvHgoc
$RH Earnings momentarily https://t.co/GKrzF7HcHt
๐ฏ RH (formerly Restoration Hardware) $RH Earnings Preview for Q1 2024 Earnings Release Date: June 13, 2024 at 4:05 PM EST Analysts' Expectations: EPS Estimate: $0.72 Revenue Estimate: Approximately $2.675 billion Historical Performance: RH has shown significant earningsโฆ
$RH Initial reaction to RH earnings this afternoon?