Barclays On Restoration Hardware: Brace Yourself For A Challenging Year

Restoration Hardware Holdings Inc RH reported a loss of $0.05 versus estimates from Wall Street of a gain of $0.05. Traders and investors essentially had a fire sale, pushing the stock down almost $8 during Thursday's session.

Barclays analyst Matthew McClintock warned H2 2016 may be rough for Restoration Hardware, but he sees a rising sun brightening the picture for 2017.

McClintock noted Restoration Hardware would be likely to see "significant acceleration in profit" in 2017. He sees the company "...aggressively rationalizing its SKU count and optimizing inventory to make room, including opening short-term outlets to move inventory and simplifying its supply chain."

McClintock maintained his Neutral rating and $50 price target.

Shares of Restoration Hardware closed Thursday's session at $28.41, down $7.77 or roughly 21 percent.