RH raises budget outlook after “record results” in third quarter

CORTE MADERA, Calif .– Luxury home furnishings retailer RH said its financial results were “the strongest two-year growth” in the industry.

For the quarter ended October 31, net revenue increased 19% to $ 1.06 billion from $ 844 million in the same quarter a year ago, and up 49% from the third quarter of 2019 Net income jumped 297% to $ 184 million from $ 46 million in Diluted earnings per share in the third quarter of 2020 and under GAAP fell from $ 1.64 to $ 5.88 in 2020.

“Our performance demonstrates both the desirability of our proprietary products and our ability to overcome the supply chain challenges that have led us to delay the launch of RH Contemporary, the opening of our first HR guesthouse. and several galleries, and sending our Fall Source Books until Spring 2022, ”CEO Gary Friedman said in a statement accompanying the earnings report.

In the first nine months of 2021, RH reported net sales of $ 2.856 billion, up 40.28% from $ 2.036 billion in 2020. Net profit climbed 282.42 % to $ 541.5 million, up from $ 141.6 million at the same time last year, and $ 17.19 from $ 5.37 over nine months in 2020, an increase of 220.11%.

With the solid numbers in hand so far this year, Friedman said RH was upping its financial forecast.

“While we believe a conservative view of fourth quarter revenue is cautious due to the uncertainties posed by the new variant of the virus, the postponed opening of our new San Francisco gallery until the spring and the continued delays of shipping and port, the strength of our operating model gives us the confidence to raise our outlook for FY2021 for the third time this year, “he wrote.” We now expect revenue growth from l ‘Fiscal year 2021 from 32% to 33% compared to our previous outlook from 31% to 33%, and an adjusted operating margin of around 25.3% to 25.5% compared to our previous outlook of 24.9% to 25.5%. “

Longer term, Friedman noted that RH has plans beyond home furnishings retail.

“Our strategy comes full circle as we begin to conceptualize and sell space, surpassing the $ 170 billion home furnishings market to reach the $ 1.7 trillion North American housing market with the launch of RH Residences – fully furnished luxury homes, condominiums and fully serviced apartments that deliver taste and time value to discerning, time-limited consumers, ”Friedman wrote.

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