Shares of Restoration Hardware Holdings Inc. (NYSE:RH) were up 13% as of 12:15 p.m. EDT after the home-furnishings retailer announced better-than-expected fiscal fourth-quarter 2016 results.
Restoration Hardware anticipates revenue in the current quarter to climb 16% to 20% year over year, or to a range of $530 million to $545 million, with roughly 5 percentage points of that growth attributed to its acquisition of Waterworks and 5 percentage points related to higher outlet and warehouse sales driven by accelerated inventory optimization initiatives. On the bottom line, that should translate to adjusted net income of $0.8 million to $2.4 million, or $0.02 to $0.06 on a per-share basis.
Finally, for the full fiscal year 2017, Restoration Hardware anticipates revenue to increase 8% to 12% year over year, or to a range of $2.3 billion to $2.4 billion, while adjusted net income should be $65 million to $80 million, or $1.78 per share to $2.19 per share. The midpoints of both ranges were well above consensus estimates, which called for fiscal 2017 revenue of $2.33 billion and earnings of $1.92 per share.
All things considered, between Restoration Hardware's relative outperformance last quarter and its encouraging outlook, it's no surprise to see investors celebrating today.