Restoration Hardware (RH) reported a significant miss in its fourth-quarter earnings, with revenue at $738.3 million compared to the expected $777.4 million, and adjusted EPS at 72 cents, falling short of the $1.69 estimate. The company also noted a miss in its adjusted gross margin, reporting 43.5% against the anticipated 45.2%. Looking forward, RH anticipates a low single-digit decrease in Q1 revenue and expects adjusted EBITDA margins to range between 12% to 13%. Despite these challenges, RH projects an 8% to 10% revenue increase for the fiscal year and anticipates demand trends to accelerate throughout 2024. The company has undergone a significant transformation over the past eighteen months, aiming to launch a more inspiring and disruptive brand. This transition comes after a period of focusing on climbing the luxury market, a strategy detailed in shareholder letters from Q4 2021 to Q1 2023. Amidst the earnings miss, RH's stock experienced volatility, initially dropping by 7% after hours but later recovering to a 4% increase, suggesting investor optimism for the brand's strategic pivot and future performance.
$RH CEO: "We have spent the past eighteen months destroying the former version of ourself and are in the process of unleashing what we believe is an exponentially more inspiring and disruptive RH brand.." https://t.co/M4Y6IAntHq
RH double miss. CEO on outlook: "While we expect business conditions to remain challenging until interest rates ease and the housing market begins to rebound, we expect our demand trends to accelerate throughout fiscal 2024" $RH: +7.4% AH https://t.co/a1SFkbzKxb
$RH "We have spent the past eighteen months destroying the former version of ourself..." What happened to "climbing the luxury mountain" - a phrase that appeared in every shareholder letter from Q421 to Q123? https://t.co/r7c5XDdxOt
$RH "We have spent the past eighteen months destroying the former version of ourself..." What happened to all the discussions over the last few years of "climbing the luxury mountain" - a phrase that appeared in every shareholder letter from Q421 to Q123? https://t.co/1mBMWn2ZNu
Well...$RH just shat the bed. @Hedgeye subscribers knew to position for this. Amazingly, the stock is up after hrs...people assuming that we just saw the trough in numbers and the guide. They're probably right.
RH is now up 4% after tumbling 10%. 1) What https://t.co/Xn95TK2MIv
$RH has gone from telling us it was all about macros & others destroying their brands to get volume to now saying it needed to destroy itself to be more 'inspiring' and 'disruptive'. Issues it had all along but wanted to blame literally anything else. 🙄 $WSM $ARHS https://t.co/P6eqJxs67h
RH Q4 Revenue $738.3MM, Exp. $777.4MM RH Q4 Adj EPS 72c, estimate $1.69 RH Q4 Adj gross margin 43.5%, estimate 45.2% RH sees Q1 revenue down low single digits RH sees Q1 Adj EBITDA margin of 12% to 13% RH says revenue to lag demand for FY 2024 by 4 to 8 points
RH misses by $0.95, misses on revs; guides FY25 revs above consensus; expects revenue to lag demand during the year $RH
$RH RH - Outlook https://t.co/aPoHtCdmW5
$RH "We have spent the past eighteen months destroying the former version of ourself and are in the process of unleashing what we believe is an exponentially more inspiring and disruptive RH brand." https://t.co/EZ695nvurH
Big $RH Restoration Hardware miss... -4Q revenue $738mn vs est $777mn -4Q EPS 72c vs est $1.69 -Sees FY rev +8%-10% https://t.co/10wY3UNpyZ
$RH: "While we expect business conditions to remain challenging until interest rates ease and the housing market begins to rebound, we expect our demand trends to accelerate throughout fiscal 2024."
$RH RH Q4. -7% AH https://t.co/oy1zcuIDTm
$RH tomorrow Nice reversal today off big support area Stars lining up. Couple bloody days into report, Cheddar flow reports on put sweeps - all good Will look for about a 330 cover tomorrow leaving ~net 3 🦵🛞 https://t.co/vNXNSfMPkj
$VLD 3-D metal printing down 30% after hours... -Revenue est for 2024 $89-95mn vs est $121mn -Current quarterly revenues $1.8mn miss est $19.5mn https://t.co/sGSfwtrK5N
$RH big R/G ahead of tomorrow PM print