Restoration Hardware Earnings: RH Stock Dives 10% on Mixed Q4 Results

RH beat EPS estimates, but missed on revenue

Restoration Hardware (NYSE:RH) earnings for fiscal fourth quarter of 2019 have RH stock falling after-hours Monday. This follows its adjusted earnings per share (EPS) of $3.72 on revenue of $664.98 million. For comparison, Wall Street was expecting $3.59 per share on revenue of $708.64 million during the quarter.

Restoration Hardware Earnings: RH Stock Dives 10% on Mixed Q4 Results
Source: Andriy Blokhin /

Here’s what else is worth mentioning from the most recent Restoration Hardware earnings report.

  • Adjusted per-share earnings are 27.4% higher than the $2.92 in the fiscal fourth quarter of 2018.
  • Revenue for the quarter is down almost 1% compared to $670.89 million in the same period of the year prior.
  • Operating income of $100.98 million is a 12.78% increase year-over-year from $89.54 million.
  • The Restoration Hardware earnings report also includes a net income of $68.43 million.
  • That’s a 151.12% jump from the company’s net income of $27.25 million reported during the same time last year.

Gary Friedman, CEO of Restoration Hardware, said this about the RH stock earnings:

“While fourth quarter revenues of $665.0 million were lower than forecast, fourth quarter adjusted earnings per share of $3.72 exceeded expectations for the 13th consecutive quarter as we continue to manage the business with a bias for earnings versus revenue growth. Adjusted operating margins reached a record 17.4% in the fourth quarter, up 230 basis points versus 15.1% last year.”

The Restoration Hardware earnings report doesn’t include an outlook for fiscal 2020. Just like many other companies, RH is withholding its outlook due to the effects of the coronavirus from China.

RH stock was down 10.42% after markets closed Monday. The stock closed out the day up 6.10%.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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