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RH Surges 35% After Trouncing Estimates, Raising Outlook

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RH (NYSE: RH) shares are soaring after a big second-quarter earnings beat and raised FY2017 outlook. It appears the move to a membership model is paying off.

Formerly known as Restoration Hardware, RH delivered second-quarter adjusted EPS of 65 cents, beating estimates by 18 cents. Sales came in nearly $13 million higher than estimates at $619 million.

The home furnishing marketplace also raised its outlook and now expects FY2017 net income in the $70 million-$77 million range, up from $60 million-$70 million. The company forecasts Q3 adjusted EPS of 68 cents-80 cents, well ahead of the consensus 40-cent estimate.

“I am pleased to report strong second quarter results as we move past the most uncertain stages of our transformation. In 2016, we made the brave decision to transform our business from a promotional to a membership model that we believe will enhance our brand, streamline our operations, and dramatically improve our customer experience,” RH CEO Gary Friedman said.

The stock traded at $67.70, up more than 36 percent in after-hours trading.

Posted-In: Gary Friedman Restoration Hardware rhEarnings News Guidance After-Hours Center Movers

 

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