Restoration Hardware Slips On Disappointing Outlook

Shares of Restoration Hardware Holdings Inc. slid in Tuesday's extended session after the upscale home furnishings retailer issued a weak outlook for the current quarter. Restoration Hardware reported its fourth-quarter earnings slid to $33.3 million, or 79 cents a share, from $42.5 million, or $1.02 a share, a year earlier. On an adjusted basis, the company earned 98 cents a share, which fell short of its own projection released in February. Revenue rose to $647.2 million from $582.7 million. The results missed FactSet survey's estimate of earnings of $1.39 a share and revenue of $711 million. In the first quarter, Restoration Hardware is forecasting revenue in a range of $452 million to $456 million and adjusted earnings per share of 6 cents to 4 cents. Wall Street is expecting revenue of $460 million and EPS of 17 cents. For fiscal 2016, the company expects revenue to grow by low to mid-single digits and flat or slightly lower EPS compared with the previous year. Shares declined 2.3% in after-hours trading.