RH Revises Guidance; Shares Slide
Home furniture and decor retailer RH , formerly Restoration Hardware, announced revised first-quarter guidance. The company now expects revenue in the range of $558 million to $562 million, up from previous guidance of $530 million to $545 million. Adjusted net income is expected to be in the range of $1.1 million to $1.9 million, compared with previous guidance of $0.8 million to $2.4 million. The company said it generated higher outlet sales due to its inventory optimization plan, but the markdowns hurt margins and earnings. Adjusted earnings per share are expected to be in the range of 3 cents to 5 cents compared with previous outlook of 2 cents to 6 cents. RH shares fell 8.3% in Thursday premarket trading, joining a broad retail sector slide after Macy's Inc. announced first-quarter earnings. RH shares are up 137% for the past three months while the S&P 500 index is up 3.6% for the period.
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