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Why Restoration Hardware (RH) Plummeted 14% in After-Hours Trading
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Luxury home furniture company Restoration Hardware (RH - Free Report) reported its fiscal 2016 first quarter results on Wednesday, causing its stock to plummet about 14% in after-hours trading. Gary Friedman, Chairman and Chief Executive Officer, stated on the matter, “Our near term business performance is being pressured by the continued headwinds in the markets impacted by energy and currency, as well as a general slowdown in the luxury consumer market.”
Restoration Hardware posted an earnings loss of -$0.05, missing our Zacks Consensus Estimate figure of $0.05, which is a surprise percentage of -200%. The company’s EPS figure excluded $0.28 from non-recurring items. The earnings figure the company posted was a negative year-over-year percentage change of 121.7%. Furthermore, Restoration Hardware missed our $458.9 million revenue estimate by posting $455.5 million in quarterly revenue.
To make matters worse, Restoration Hardware’s 2nd quarter of fiscal 2016 outlook will be negatively impacted by this quarter’s results. There will be an approximate $2 million to $3 million net revenue and approximately $0.30 adjusted diluted EPS reduction per the short term operational items, which include “costs associated with RH Modern production delays and investments to elevate the customer experience,” according to the company’s earnings report.
The revised 2nd quarter outlook will now be the following: net revenues in the range of $505 million to $520 million, adjusted net income in the range of $11.5 million to $13.5 million, adjusted diluted EPS in the range of $0.28 to $0.33, income tax rate of approximately 39%, and diluted shares outstanding of approximately 41 million.
Restoration Hardware is also lowering its outlook for fiscal year 2016, which includes an approximate $16 million to $17 million net revenue and $0.90 to $1.00 adjusted diluted EPS reduction per the short term operational items described above. The revised fiscal 2016 outlook will now include the following: net revenues growth in the range of 1% to 3%, adjusted diluted EPS in the range of $1.60 to $1.80, and capital expenditures in the range of $180 million to $210 million.
Restoration Hardware Holdings, Inc. has a Zacks Rank #4 (Sell).
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Why Restoration Hardware (RH) Plummeted 14% in After-Hours Trading
Luxury home furniture company Restoration Hardware (RH - Free Report) reported its fiscal 2016 first quarter results on Wednesday, causing its stock to plummet about 14% in after-hours trading. Gary Friedman, Chairman and Chief Executive Officer, stated on the matter, “Our near term business performance is being pressured by the continued headwinds in the markets impacted by energy and currency, as well as a general slowdown in the luxury consumer market.”
Restoration Hardware posted an earnings loss of -$0.05, missing our Zacks Consensus Estimate figure of $0.05, which is a surprise percentage of -200%. The company’s EPS figure excluded $0.28 from non-recurring items. The earnings figure the company posted was a negative year-over-year percentage change of 121.7%. Furthermore, Restoration Hardware missed our $458.9 million revenue estimate by posting $455.5 million in quarterly revenue.
To make matters worse, Restoration Hardware’s 2nd quarter of fiscal 2016 outlook will be negatively impacted by this quarter’s results. There will be an approximate $2 million to $3 million net revenue and approximately $0.30 adjusted diluted EPS reduction per the short term operational items, which include “costs associated with RH Modern production delays and investments to elevate the customer experience,” according to the company’s earnings report.
The revised 2nd quarter outlook will now be the following: net revenues in the range of $505 million to $520 million, adjusted net income in the range of $11.5 million to $13.5 million, adjusted diluted EPS in the range of $0.28 to $0.33, income tax rate of approximately 39%, and diluted shares outstanding of approximately 41 million.
Restoration Hardware is also lowering its outlook for fiscal year 2016, which includes an approximate $16 million to $17 million net revenue and $0.90 to $1.00 adjusted diluted EPS reduction per the short term operational items described above. The revised fiscal 2016 outlook will now include the following: net revenues growth in the range of 1% to 3%, adjusted diluted EPS in the range of $1.60 to $1.80, and capital expenditures in the range of $180 million to $210 million.
Restoration Hardware Holdings, Inc. has a Zacks Rank #4 (Sell).
RESTORATION HDW Price and Consensus
RESTORATION HDW Price and Consensus | RESTORATION HDW Quote
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