Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Restoration Hardware Shares Jumped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Restoration Hardware (NYSE: RH  ) were stacking higher today after the company posted better-than-expected results in its quarterly report.

So what: The newly public home-furnishings retailer reported an adjusted earnings per share of $0.64, $0.02 better than analyst expectations. Revenue gained 30%, to $398.1 million, topping analyst expectations of $390.5 million, as well. Even better, same-store sales jumped by a whopping 26%. Since that metric excludes revenue from new stores, it's often the best indicator for a retailer's strength and future growth potential. In the current quarter, Restoration Hardware expects earnings per share between -$0.02 and break even, and revenue of $280-$285 million, both better than the Wall Street consenus. For the year, it sees an EPS of $1.29-$1.37.

Now what: It's hard to argue with 26% comparable sales growth, and considering the company is only guiding toward 20% revenue growth this year, we could see an easy earnings beat. The upscale furnishings seller may also be the right play at a time when the economy is recovering, and the housing market is starting to come back. Look for shares to go higher from here.

Don't miss the next update on Restoration Hardware. Add the company to your Watchlist by clicking right here.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2374361, ~/Articles/ArticleHandler.aspx, 9/27/2016 11:35:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,133.86 39.03 0.22%
S&P 500 2,151.17 5.07 0.24%
NASD 5,278.31 20.82 0.40%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:18 AM
RH $31.98 Up +0.51 +1.62%
Restoration Hardwa… CAPS Rating: ***