Restoration Hardware Q4 Earnings Top Estimates

reported better-than-expected earnings for its fiscal fourth quarter. The Corte Madera, California-based company posted quarterly net earnings of $42.5 million, or $1.02 per share, compared to $26.6 million, or $0.65 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings surged 23 percent to $1.02 per share. Its revenue climbed 24 percent to $582.7 million. However, analysts were expecting earnings of $1.01 per share on revenue of $582.85 million. Comparable brand revenue rose 24 percent in the quarter, while direct revenue gained 33 percent to $304.8 million in the quarter. GAAP operating margin widened to 12.9 percent in the latest quarter from 12.4 percent last year, while adjusted operating margin rose 30 basis points to 12.7 percent. Gary Friedman, Chairman and Chief Executive Officer, said, "While we have been negatively impacted by the West Coast port disruption in the first quarter of this year, we believe at this point, most of the revenue and earnings not recorded in the first quarter of fiscal 2015 should shift forward and have a positive effect on the second quarter." For the fiscal first quarter, Restoration Hardware projects adjusted earnings of $0.18 to $0.20 per share, including the negative impact of around $0.05 to $0.06 per share due to the West Coast port congestion, and revenue of $415 million to $420 million, including the negative impact of around $10 million to $12 million due to the West Coast port congestion. Analysts had expected earnings of $0.23 per share on revenue of $437 million. For the fiscal year ending January 30, 2016, the company expects adjusted earnings of $2.95 to $3.10 per share on revenue of $2.13 billion to $2.17 billion. The average estimate of 18 analysts surveyed by Estimize was for earnings of $1.03 per share and revenue of $582.45 million for the fourth quarter. Restoration Hardware shares fell 2.23 percent to $91.07 in after-hours trading.