Luxury furniture retailer RH (NYSE: RH) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
RH missed analysts’ revenue expectations last quarter, reporting revenues of $842.6 million, up 3.7% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Is RH a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RH’s revenue to decline 2.6% year on year, a reversal from the 12% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RH has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RH’s peers in the home furniture retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Williams-Sonoma delivered year-on-year revenue growth of 4.4%, meeting analysts’ expectations, and Arhaus reported flat revenue, in line with consensus estimates. Williams-Sonoma traded up 6.8% following the results while Arhaus was down 14.3%.
Read our full analysis of Williams-Sonoma’s results here and Arhaus’s results here.
There has been positive sentiment among investors in the home furniture retailer segment, with share prices up 11% on average over the last month. RH is up 15.6% during the same time and is heading into earnings with an average analyst price target of $157.12 (compared to the current share price of $149.41).
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