Boston, MA 06/12/2014 (wallstreetpr) – Restoration Hardware Holdings Inc. (NYSE:RH) shares continue with their impressive rally in the market, as a result, of the company posting first quarter earnings that beat estimates. The company’s shares are already trading on a high of 13.3%. The luxury home retailer continues to benefit a great deal from an uptick in home sales and construction in the greater industry, despite a slight slowdown during the first half of the year.
Business Revamping Plans
Restoration Hardware Holdings Inc. (NYSE:RH) continues with its strategy of revamping its business model opting to do away with mall locations in favor of larger stores that have the potential of resulting in increased earnings. The company has already confirmed it has signed leases for six design galleries and is currently in talks for 25 more. The company is also expanding its product offer while also remaining focused on transformation of the retail stores.
Restoration Hardware Holdings Inc. (NYSE:RH) remains confident that once the ongoing real estate transformation in North America is complete, the company will be able to deliver between $4 billion and $5 billion in annual sales; this is according to the company’s chairman and chief executive Gary Friedman. Looking forward, Restoration Hardware has promised to retain key-value driving strategies that are capable of driving home, better returns.
Restoration Hardware Forecasts
For the full year, earnings per share should be between $2.24 and $2.30, this is slightly above previously issued estimate of between $2.14 and $2.22. Full year revenue forecast has also been raised to between $1.86 billion and $1.89 billion compared to the initial guidance of between $1.825 billion and $1.86 billion. For the second quarter, the luxury home retailer expects earnings per share of between 62 cents and 64 cents on revenue of between $443 million and $453 million.
During the first quarter, Restoration Hardware Holdings Inc. (NYSE:RH) reported a profit of $1.8 million having booked a loss of $161,000 for the same period a year earlier. Net revenue for the quarter was up by 22% slightly lower compared to an increase of 38% a year earlier. Operating income stood at $14 million representing an increase of 204%.
