RH (NYSE:RH) posted weaker-than-expected results for its fourth quarter, but issued upbeat forecast on Wednesday.
RH reported fourth-quarter revenue of $738.26 million, which missed the consensus estimate of $777.48 million, according to Benzinga Pro. The luxury retailer reported quarterly adjusted earnings of 72 cents per share, which missed analyst estimates of $1.67 per share.
“Fiscal 2023 was a year of adversity, innovation, and investment for team RH as we faced the most challenging housing market in three decades while investing in the most compelling product transformation and platform expansion in our history,” the company said in a letter to shareholders. “We have positioned the RH brand to gain significant market share in 2024 and beyond while building the foundation for our global expansion across the United Kingdom, Europe, Australia and the Middle East over the next several years.”
RH sees full-year 2024 demand growth of 12% to 14% and revenue growth of 8% to 10% on a year-over-year basis. Full-year adjusted operating margin is expected to be in the range of 13% to 14% and adjusted EBITDA margin is expected to be in the range of 18% to 19%.
RH shares jumped 9.5% to $325.32 in pre-market trading.
These analysts made changes to their price targets on RH following earnings announcement.
- Telsey Advisory Group raised the price target on RH from $285 to $335. Telsey Advisory Group analyst Joseph Feldman maintained a Market Perform rating.
- Wedbush increased the price target on RH from $275 to $320. Wedbush analyst Seth Basham maintained a Neutral rating.
Check This Out: RH, Walgreens And 3 Stocks To Watch Heading Into Thursday
