RH Inc., formerly known as Restoration Hardware, on Tuesday reported financial results that reflected robust demand for its luxury products.
“Our demand has accelerated sharply, with February up 73%, and the first two
weeks of March up 96%, prior to cycling the closing of our Galleries, Restaurants and Outlets a year ago,” RH Chief Executive Gary Friedman said in a letter to shareholders. Demand for its core RH store business increased 36% in the fourth quarter, while overall demand was up 29%.
rose more than 8.6% after hours, after falling 4.6% in the regular session to close at $485.11.
The Corte Madera, Calif.-based seller of high-end furniture and more reported fourth-quarter net income of $271.8 million, or $4.31 a share, compared with $220.4 million, or $2.66 a share, in the year-ago period. Adjusted earnings were $5.07 a share, adjusted for non-cash compensation, asset impairments and more. Revenue rose to $812.4 million from $665 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $4.75 a share on revenue of $797.4 million.
For the full year, RH reported earnings of $271.8 million, or $9.96 a share, on $2.85 billion in revenue.
Despite worries that vendor production won’t be able to meet demand because of the coronavirus pandemic and other reasons, RH expects first-quarter revenue to grow at least 50%, and projects 2021 revenue growth of 15% to 20%.
Shares of RH are up nearly 11% so far this year, and up more than 375% in the past 52 weeks.