Restoration Hardware Q3 Adj. Profit Tops View; Lifts FY13 EPS Outlook

(RTTNews) - Restoration Hardware Holdings, Inc. (RH) Thursday reported third-quarter net income of $9.5 million or $0.23 per share, compared to $1.7 million in the same period last year.

Adjusted net income for the latest third quarter was $13.0 million or $0.32 per share, up from $2.7 million, or $0.07 per share in the prior period. On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues increased 39 percent to $395.83 million from $284.17 million last year, while ten analysts expected revenues of $390.76 million.

Comparable store sales grew 29 percent year-over-year.

Looking ahead to the fourth quarter, the company has forecast adjusted earnings in the range of $0.82 to $0.85 per share, with revenues ranging between $490 million and $500 million. Analysts currently expect the company to earn $0.85 per share on fourth-quarter revenues of $497.20 million.

For the fiscal 2013, the company expects adjusted earnings in the range of $1.71 to $1.74 per share and revenues in the range of $1.57 billion to $1.58 billion. Analysts currently expect the company to report full-year earnings of $1.71 per share on revenues of $1.57 billion.

Earlier, the company expected adjusted earnings to be in the range of $1.65 to $1.70 per share and revenues in the range of $1.56 billion to $1.58 billion.

Separately, Restoration Hardware announced the resignation of Carlos Alberini from his position as Co-Chief Executive Officer of the company, effective January 31, 2014.

The company said Alberini has accepted the position of Chairman of the Board and Chief Executive Officer of Lucky Brand, in Los Angeles, effective upon closing of the pending acquisition by Leonard Green & Partners, L.P. Alberini plans to continue to serve as a member of the Board of Directors of Restoration Hardware Holdings, Inc. and remain a significant shareholder of the company.