Luxury furniture retailer RH (NYSE:RH) is scheduled to release its quarterly earnings report this Thursday after the market closes.
For the upcoming quarter, analysts project revenue will grow 8.8% year-over-year to $903 million, a significant acceleration from the 3.6% increase recorded in the same period last year. Adjusted earnings are forecast to be $3.22 per share.
This follows a mixed previous quarter in which the company’s revenue of $814 million, a 12% annual increase, narrowly missed expectations. Although earnings per share surpassed estimates, EBITDA fell significantly short of forecasts. Investors will also note that RH has missed Wall Street’s revenue estimates in six of the last eight quarters, though the majority of analysts covering the company have reconfirmed their estimates in the last 30 days.
Recent earnings from competitors in the home furniture sector offer a mixed outlook. Arhaus reported a 15.7% year-over-year revenue increase, surpassing analyst expectations by 7.4%, which sent its stock up 13.5%. In contrast, Williams-Sonoma’s revenue grew 2.7%, meeting consensus estimates, but its shares declined by 5% following the announcement.
Investor sentiment toward the home furniture retail segment has been positive recently, with share prices rising by an average of 8.1% over the last month. RH has slightly outperformed the sector, gaining 8.9% during the same period. The company heads into its earnings announcement with an average analyst price target of $262.25, compared to its current share price of approximately $234.
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