Luxury furniture retailer RH (NYSE:RH) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.
RH beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $829.7 million, up 3.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.
Is RH a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RH’s revenue to grow 8.1% year on year to $811.8 million, a reversal from the 13.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RH has missed Wall Street’s revenue estimates three times over the last two years.
Looking at RH’s peers in the home furniture retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Williams-Sonoma’s revenues decreased 2.8% year on year, beating analysts’ expectations by 0.9%, and Sleep Number reported a revenue decline of 9.7%, falling short of estimates by 4.3%. Williams-Sonoma traded up 25.7% following the results while Sleep Number was also up 3.5%.
Read our full analysis of Williams-Sonoma’s results here and Sleep Number’s results here.
There has been positive sentiment among investors in the home furniture retailer segment, with share prices up 8% on average over the last month. RH is up 15.5% during the same time and is heading into earnings with an average analyst price target of $339.38 (compared to the current share price of $384.99).
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