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December 9, 2021

RH Q3 Sales Top $1 Billion

Posted In: Retail Articles

Third-quarter net revenues at Restoration Hardware pushed over $1 billion as adjusted net income increased by a quarter.

Net income was $184.1 million, or $5.88 per diluted share, versus $46.4 million, or $1.64 per diluted share, in the year-prior quarter, according to RH. Adjusted to eliminate the effects of one-time events, net income advanced by 25% to $209 million and diluted earnings per share reached $7.03 from $6.20 in the year-previous period, the company reported.

A Yahoo Finance-published analyst consensus estimate called for adjusted earnings per share of $6.63 per diluted share and sales of $983.7 million.

Net revenues were $1.01 billion as compared with $844 million in the quarter a year before or $845 adjusted. Income from operations was $272.5 million versus $111.2 million in the year-earlier period.

In a letter to shareholders, Gary Friedman, RH chairman and CEO, wrote:

“We are pleased to report yet another quarter of record results with net revenues increasing 19% to $1.006 billion versus $844 million a year ago, and up 49% versus 2019, representing the strongest two-year growth in our industry. Our performance demonstrates both the desirability of our exclusive products and our ability to overcome the compounding supply chain challenges that led us to delay the launch of RH Contemporary, the opening of our first RH Guesthouse and several Galleries, and the mailing of our Fall Source Books until Spring of 2022. RH continues to set a new standard for financial performance in the home furnishings industry, and our results now reflect those of the luxury sector as adjusted operating margin reached 27.7% versus 26.7% last year. We generated $279 million of adjusted operating income in the quarter, up 24% compared to $225 million a year ago.”

Looking forward, he noted that RH has been referring to 2022, as The Year Of The New, which will include:

  • The introduction of RH Contemporary was characterized as the most meaningful new product launch in RH history including a 500-plus-page Source Book, a freestanding RH Contemporary Gallery, a dedicated website and a national advertising campaign.
  • The elevation and expansion of RH Interiors and RH Modern include multiple new collections, enhanced quality and new presentation and photography across physical and digital platforms.
  • The launch of a global expansion with the opening of RH England, The Gallery at the Historic Aynhoe Park, a 73-acre estate designed in 1615 by English architect Sir John Soane that will introduce RH to the United Kingdom. RH has additional international locations for galleries in London, Paris, Munich and Dusseldorf, and is in lease or purchase negotiations for galleries in Milan, Madrid, Brussels and France.
  • The opening of the first RH Guesthouse in New York, a new hospitality concept for travelers seeking privacy and luxury in the $200 billion North American hotel market.
  • The debut of The World of RH, a new digital portal presenting the company’s integrated ecosystem of products, places, services and spaces all designed to elevate the RH brand and communicate the company’s authority as a thought leader, taste and place maker.
  • The lift-off of RH1 and  RH2, a customized Gulfstream G650ER and G550 plane available for charter.
  • The christening of RH3, a luxury yacht available for charter in the Mediterranean and Caribbean.
  • The expansion of RH In-Your-Home, a unique delivery experience with furniture ambassadors guiding every detail of your delivery and extending the selling experience into the home.
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