In the fourth quarter, Restoration Hardware sales and earnings slid, but CEO Gary Friedman insisted that the company has positioned itself for growth.
An analyst consensus estimate published by MarketBeat had earnings per adjusted diluted share at $1.71 and revenues at $777.5 million.
Net revenues were $738.3 million versus $772.5 million in the year-previous quarter. Income from operations was $64.3 million as compared with $112.2 million in the year-before period, while adjusted operating income came in at $66.9 million versus $128.2 million.
For the full fiscal year, net income was $127.6 million, or $5.91 per diluted share, versus $528.6 million, or $19.90 per diluted share, in the year earlier, the company reported. Adjusted net income was $147.4 million, or $6.87 per diluted share, versus $528.5 million, or $20.06 per diluted share, in the year prior.
Net revenues were $3.03 billion versus $3.59 billion in the year previous. Income from operations was $366.1 million as compared to $722.2 million in the year before while adjusted operating income came in at $393.8 million versus $789.8 million.
In a letter to stakeholders, Gary Friedman, RH chairman and CEO, stated:
Fiscal 2023 was a year of adversity, innovation, and investment for team RH as we faced the most challenging housing market in three decades while investing in the most compelling product transformation and platform expansion in our history. We have positioned the RH brand to gain significant market share in 2024 and beyond while building the foundation for our global expansion across the United Kingdom, Europe, Australia and the Middle East over the next several years.
While aggressively investing during a downturn has put pressure on short-term results, it also positions us to capitalize on the long-term opportunities that present themselves during times of disruption and dislocation.
We’ve demonstrated our confidence in our strategy by repurchasing 7.6 million shares of our stock during fiscal 2022 and 2023, representing approximately 35% of the shares outstanding and believe that investment will create meaningful long-term value for our shareholders.
Turning to our fourth quarter and full year results, revenue was negatively impacted by $40 million in the fourth quarter due to the severe January weather and shipping delays related to the ongoing conflict in the Red Sea. We do expect the majority of the deferred revenue will be realized in 2024 when transit times normalize.
Deleverage from lower revenues, increased markdowns to support the company’s product transformation and investments in international expansion also hit the financial results, he noted.
