Restoration Hardware CEO Gary Friedman highlighted the company’s active retail expansion and brand extension strategy after releasing fourth-quarter results that saw RH beat a Wall Street estimate on earnings but not on sales.
For the fourth quarter, RH posted a net income of $147 million, or $4.91 per diluted share, versus $130.2 million, or $4.31 per diluted share, in the year-prior period. Adjusted for one-time charges, net income was $164 million, or $5.66 per diluted share, versus $143.5 million, or $5.07 per diluted share, in the year-earlier quarter.
A Zacks Investment Research analyst consensus estimate on adjusted diluted earnings per share in the quarter was $5.24 and on revenue was $904.3 million
Net revenues were $902.7 million versus $812.4 million in the year-before quarter. Operating income was $217.8 million and adjusted operating come was $227 million versus $183.6 million and $192.2 million in the year-previous quarter.
For the full fiscal year, RH posted a net income of $688.5 million, or $22.13 per diluted share, versus $271.8 million, or $9.96 per diluted share, in the year prior. Adjusted net income was $766.5 million, or $26.12 per diluted share, versus $462.9 million, or $17.83 per diluted share, in the year-earlier
Net revenues were $3.76 billion versus $2.85 billion in the year before. Operating income was $927.2 million and adjusted operating income was $962.6 million versus $466.9 million and $620.5 million in the year previous.
In a letter released with the financial numbers, Gary Friedman, RH chairman and CEO, stated, “Our performance demonstrates the desirability of our elevated and exclusive product range, the connective power of our evolving ecosystem, the profitability of our fully integrated business model and the significant strategic separation created by our inspiring physical spaces.”
As he considered the immediate past and future, Friedman, in his posted letter, highlighted the status of several RH initiatives:
“As we’ve mentioned, while many of our plans were delayed by the virus, they were not disrupted by it. We used these past two years to reimagine and reinvent ourselves once again, and believe 2022 will mark the beginning of the next chapter of growth and innovation for the RH brand. 2022, The Year of The New, will include:
The opening of RH San Francisco at the Historic Bethlehem Steel Building, our most extraordinary new Bespoke Gallery to date.
The launch of RH Contemporary, the most compelling and potentially disruptive product introduction in our history.
The elevation and expansion of RH Interiors and RH Modern, inclusive of new collections and enhanced quality.
The unveiling of our first RH Guesthouse in New York, a revolutionary new hospitality concept for travelers seeking privacy and luxury in the $200 billion North American hotel market.
The introduction of two new culinary concepts, an elevated live-fire restaurant opening in San Francisco, England and the New York Guesthouse, plus a Champagne and Caviar Bar also opening in the New York Guesthouse this year, with plans to expand both concepts to our future Galleries in Paris, London, Milan and Aspen. With average restaurant volumes approaching $10 million annually, and a very profitable four-wall model, we are making significant investments to build a world-class hospitality organization and see endless opportunities to elevate and activate our places and spaces, creating integrated and inspiring experiences for our members and customers that cannot be replicated online.
The debut of The World of RH, the first phase of our new digital portal highlighting the connective power of our evolving ecosystem of Products, Places, Services and Spaces all designed to inspire customers to dream, dine, travel and live in a world thoughtfully curated by RH, will create an emotional connection with our customers unlike any other brand in the world.
The liftoff of RH1 & RH2, our customized Gulfstream G650 and G550 that will be available for charter later this year. The former has already generated press and praise as featured in the pages of Architectural Digest, the Wall Street Journal and the 20 titles of Modern Luxury.
The christening of RH3, our luxury yacht that will be available for charter in the Mediterranean and Caribbean. RH3 will be featured in the Robb Report, C Magazine and Boat International over the coming months.
The continued rollout of RH In-Your-Home, a unique and memorable delivery experience with Brand Ambassadors guiding every detail of the delivery and extending the selling experience into the home.
The expansion of the RH brand globally, beginning with the opening of RH England, The Gallery at the Historic Aynhoe Park, a magical 17th-century, 73-acre estate in the English countryside that will introduce RH to the UK in a dramatic and unforgettable fashion. Additionally, we have secured locations for Galleries in London, Paris, Munich and Dusseldorf, and are in lease or purchase negotiations for Galleries in Milan, Madrid, Brussels and France.
The opening of RH Palo Alto, The Gallery at Stanford Shopping Center, which will represent the next evolution of our highly productive prototype Galleries.”
