RH (RH) Misses Q4 EPS by 45c, Guidance Trails Views

RH (NYSE: RH) reported Q4 EPS of $2.88, $0.45 worse than the analyst estimate of $3.33. Revenue for the quarter came in at $772 million versus the consensus estimate of $777.27 million.

OUTLOOK

As noted in our previous shareholder letter, we expect business conditions to remain challenging for the next several quarters and possibly longer as a result of the accelerating weakness in the housing market, the uncertainty generated by the recent banking crisis and the cycling of record Covid-driven sales and backlog reductions.

Based on current trends, we expect fiscal 2023 revenues in the range of $2.9 to $3.1 billion and adjusted operating margin in the range of 15% to 17%, which includes an approximate 150 basis point drag due to the ramp up of our global expansion. We estimate the 53rd week will result in revenues of approximately $60 million.

For the first quarter of fiscal 2023, we are forecasting revenues of $720 to $735 million and adjusted operating margin in the range of 13% to 14%.

(Consensus sees Q1 revenue of $833 million and FY23 revenue of $3.46 billion)

For earnings history and earnings-related data on RH (RH) click here.

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