Restoration Hardware (NYSE: RH) beat Q4 earnings estimates, but missed the revenue targets. The home-furnishings company reported earnings of $3.00 per share on revenue of $670.9 million for the quarter ended February 2, 2019. Analysts had expected RH to post earnings of $2.85 per share on revenue of $686.6 million. RH stock plunged more than 15% during the extended trading hours on reduced FY19 outlook.
On a GAAP basis, earnings per share stood at $1.41 for the fourth quarter versus $0.01 in the last year’s fourth quarter.
RH cut down its FY19 outlook. The company now expects revenue to be in the range of $2.585 billion to $2.635 billion, representing growth of 3% to 5% versus the prior estimate of $2.72 to $2.82 billion, representing a growth of 8% to 12%.
The Corte Madera, California-based firm cut down its sales forecast due to the continued weakness in its core business post the fourth quarter market volatility, the negative trends in the high end housing market, and its continued efforts to edit unprofitable and non-strategic businesses.
For FY19, the adjusted revenue is expected to be in the range of $2.585 to $2.635 billion and adjusted EPS is targeted to be in the range of $8.41 to $9.08.
For the first fiscal quarter of 2019, RH expects revenue to be $582 million to $588 million and adjusted EPS to be in the range of $1.58 to $1.70 under the ASC 842 accounting method.
In early March, the company appointed Jack Preston as its CFO, replacing Ryno Blignaut. Preston was serving RH as Senior Vice President, Finance & Chief Strategy Officer of the company. Blignaut decided to step down as CFO based upon his health considerations and he is expected to resign with effect from April 3, 2019.
RH stock had increased 10% since the beginning of this year and 43% in the past 12 months. Shares of RH ended at $131.93, up 1.96% today.