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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.
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Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.