In the first quarter, Restoration Hardware blew by Wall Street estimates as it continue expanding and updating operations
Adjusted for one-time events, net revenue was $212.8 million, or $7.78 per diluted share, versus $142.3 million or $4.89 per diluted share, in the year-prior period.
RH beat a MarketBeat-published analyst consensus estimate for earnings per adjusted diluted share, which it has at $5.46, and revenue, which it had at $924.8 million.
Net revenues were $957.3 million versus $860.8 million in the year-previous quarter.
In a letting to shareholders, Gary Friedman, RH chairman and CEO, stated, “While there has been a widespread return to discounting across our industry as evidenced by the barrage of sale emails filling our inboxes, and there may be short-term risk of market share loss by choosing not to promote, we believe there is certain long-term risk of brand erosion and model destruction once you begin down that path.
“It’s that discipline and long-term thinking that has enabled us to set new standards for financial performance in the home furnishings industry, and our results now reflect those of the leading luxury brands as first-quarter adjusted operating margin reached 24.7% versus 22.6% a year ago.”
Friedman added that he expects fiscal 2022 to be a new chapter in the development of RH with initiatives in food service, hospitality and transportation as well as retail. As for the retail business, he cited advancing company operations through the year: the May opening of RH San Francisco, the launch of RH Contemporary, the upcoming premiere of the new World of RH digital portal, the introduction of the next-iteration gallery RH Palo Alto, the beginning of international expansion with RH England and the rollout of RH In-Your-Home a service that features Brand Ambassadors that guide product delivery and extend the selling experience into customer homes.
