Restoration Hardware Q1 Profit Rises - Update

(RTTNews) - Home furnishings retailer Restoration Hardware Holdings Inc.(RH), Thursday reported an increase in profit for the first quarter, as revenues climbed 15 percent and margins improved, with both earnings and revenues topping Wall Street estimates.

Moving ahead, the company lifted its full year view, but detailed a weak outlook for the second quarter.

Corte Madera, California-based Restoration Hardware's first-quarter profit rose to $7.2 million or $0.17 per share from $1.8 million or $0.04 per share last year.

Excluding one-time items, adjusted earnings for the quarter rose to $0.23 per share from $0.18 per share a year ago. On average, 18 analysts polled by Thomson Reuters estimated earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 15 percent to $422.4 million from $366.3 million last year. Analysts had a consensus revenue estimate of $418.97 million for the quarter.

Comparable brand revenues increased 15 percent on top of an 18 percent increase last year. Gross margins improved to 34.3 percent from 34.0 percent last year, while operating margins advanced to 4.4 percent from 3.8 percent last year.

Looking forward to the second quarter, the company expects adjusted earnings of $0.80 to $0.84 per share on revenues of $495 million to $505 million. Analysts currently expect earnings of $0.86 per share on revenues of $509.8 million.

For the full year 2015, the company now expects adjusted earnings of $3.02 to $3.15 per share on revenues of $2.15 billion to $2.18 billion. Analysts currently expect earnings of $3.04 per share on revenues of $2.17 billion for 2015.

Earlier, Restoration Hardware expected earnings of $2.95 to $3.10 per share on revenues of $2.13 billion to $2.17 billion for 2015.

RH closed Thursday's trading at $94.83, down $0.99 or 1.03%, on the NYSE. The stock further dropped $0.44 or 0.46% in the after-hours trading.