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RH Shares Soar 17% on Upbeat Q3 Results and Raised Guidance

RH Shares Soar 17% on Upbeat Q3 Results and Raised Guidance Dec. 13, 2024, 8:13 a.m., readers: 18

Luxury home furnishings retailer RH (NYSE:RH) saw its shares jump over 17% in Friday's pre-market trading following the release of its third-quarter earnings and an upward revision to its fourth-quarter and full-year outlook, fueled by accelerating demand growth. For the third quarter, RH reported adjusted earnings per share of $2.48, falling short of analyst estimates of $2.66. Revenue, however, slightly exceeded expectations, reaching $812.73 million compared to the $812.5 million consensus, marking an 8.1% year-over-year increase. Demand growth proved to be the standout metric for the quarter. Overall demand rose 13%, driven by a 14% increase in RH Brand demand. Momentum picked up in November, with total demand growth accelerating to 18% and RH Brand demand surging by 24%. Buoyed by these strong trends, RH raised its guidance for the fourth quarter, forecasting total demand growth of 20% to 22% and revenue growth of 18% to 20%. For the full fiscal year, the company now anticipates total demand growth between 9.9% and 10.4%, alongside revenue growth of 6.8% to 7.2%.

About NYSE: RH

R H, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.

Price: 408.27
Market cap: 7.6 billion USD
Eps: 3.59
P/e ratio: 113.72
Focus Analysis On: RH