Shares of RH rallied late Thursday on the home furnishings retailer’s outlook for its Q3 results.
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RH (RH), formerly known as Restoration Hardware, reported earnings of $2.48 per share adjusted, improving from a loss of 42 cents last year. Revenue increased 8.1% to $811.73 million.
FactSet expected earnings of $2.65 per share on $812.2 million in sales.
RH reported that total demand increased 13% during the quarter, while brand demand grew 14%. Brand demand accelerated to a 24% increase in November, and is up 30% so far in December.
The company guided Q4 revenue to an 18% to 20% increase, driven by a 20% to 22% jump in total demand. RH guided an adjusted operating margin of 12.2% to 13.2% for the quarter.
For the year, RH guided revenue growth between 6.8% and 7.2%, on 9.9% to 10.4% demand growth.
The home furnisher expects an adjusted operating margin of 11.5% to 11.7% for the year.
RH Stock
RH rallied 17% in late trade Thursday to 445.
Through Thursday’s close, shares are up 79% from their 2024 lows in June. RH has advanced nearly 31% so far this year.
Semi-rival Williams-Sonoma (WSM) climbed 2.5% following the report. WSM stock is slightly extended from a buy zone for a recent consolidation.
Williams-Sonoma broke out in late November after beating Q3 estimates and improving its guidance.
Shares have soared nearly 90% this year and are trading at record highs.
Mattress, cushion and pillow retailer Tempur Sealy (TPX) swung 2.2% higher Thursday. TPX stock is trading just below a 57.13 buy point.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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