3. Restoration Hardware
Restoration Hardware (RH) is a luxury furniture and accessories retailer with retail galleries, the sourcebook and online sales at RH.com. It operates 70 retail stores and 17 outlet stores.
With housing recovering, especially at the luxury end, furniture sales have been strong as well. On Dec 12, the company reported fiscal third quarter results which beat the Zacks Consensus again.
Restoration Hardware re-IPO’d in December 2012 and it has beat every quarter since. It is not scheduled to report again until April.
Comparable-store sales soared another 29% with net revenue up 39%.
Yet shares have plunged on fears about the nasty winter weather and an expensive real estate build out possibly leading to a warning for the fourth quarter.
- Forward P/E = 25
- Fiscal 2013 expected EPS growth: – 25%
- Fiscal 2014 expected EPS growth: 188%
Zacks Rank #3 (Hold)
Shares are down about 17% over the last month on these fears to 6-month lows. It’s a chance to get a top of the line retailer much cheaper than in 2013.
Look for Buying Opportunities
Pull backs are a chance to get your favorite stocks on the cheap.
These three hot retailers have seen extremely large sell offs. If you liked these stocks at their all-time highs, you have to like them even more now that they’re on sale.
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