RH Inc., formerly known as Restoration Hardware, on Tuesday reported financial results that reflected robust demand for its luxury products.
“Our demand has accelerated sharply, with February up 73%, and the first two
weeks of March up 96%, prior to cycling the closing of our Galleries, Restaurants and Outlets a year ago,” RH Chief Executive Gary Friedman said in a letter to shareholders. Demand for its core RH store business increased 36% in the fourth quarter, while overall demand was up 29%.
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The Corte Madera, Calif.-based seller of high-end furniture and more reported fourth-quarter net income of $271.8 million, or $4.31 a share, compared with $220.4 million, or $2.66 a share, in the year-ago period. Adjusted earnings were $5.07 a share, adjusted for non-cash compensation, asset impairments and more. Revenue rose to $812.4 million from $665 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $4.75 a share on revenue of $797.4 million.
For the full year, RH reported earnings of $271.8 million, or $9.96 a share, on $2.85 billion in revenue.
Despite worries that vendor production won’t be able to meet demand because of the coronavirus pandemic and other reasons, RH expects first-quarter revenue to grow at least 50%, and projects 2021 revenue growth of 15% to 20%.
The company also said it continues to seize opportunities in hospitality and homebuilding, and plans to open four new design galleries with restaurants and bars this year in San Francisco, Dallas, Oak Brook, Ill., and Jacksonville, Fla.
Shares of RH are up nearly 11% so far this year, and up more than 375% in the past 52 weeks.
