By Dhirendra Tripathi
Investing.com – Shares of RH (NYSE:RH), also known as Restoration Hardware, rose more than 10% in Thursday’s premarket trading after the home furnishings retailer revised its guidance following a good first quarter.
Chairman and CEO Gary Friedman credited its quarterly performance and the revised guidance to “a strong housing and renovation market, both with pent up demand and a long tail, a record stock market, low interest rates and the reopening of several large parts of our economy”.
“Additionally, the un-masking of the general public could lead to a Roaring Twenties type of consumer exuberance,” Friedman said in a letter to shareholders.
The company now sees revenue growth in fiscal 2021 in a range of 25% to 30% versus its prior outlook of 15% to 20%.
Adjusted operating margin is seen rising 170 basis points-250 basis points to 23.5%-24.3% for the year.
For the first quarter ended May 1, RH reported net revenue of $860.79 million, up 78.2% from the year-ago quarter. Diluted net income per share swung to $4.19 from a loss of 17 cents in the same quarter last year.