Restoration Hardware Q2 revenue tops estimates

Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down Restoration Hardware's latest earnings.

Video Transcript

- I Want to talk about what's going on in the earnings world. We got Restoration Hardware. Jared, are you ready to go? What are they telling us?

JARED BLIKRE: I am ready to go. Much like Lululemon, blowout numbers for our edge. Adjusted EPS for the second quarter coming in at $8.48. The estimate was for $2 lower at $6.49. Net revenue of $988.9 million, up 39% year-over-year, beating the estimate of $974.8 million. Gross margin, 49.3%, beating 49.1%. That's what the Street was expecting. And then adjusted operating margin, 26.6%.

I want to quote the report. It was always a fun read and pretty creative too. We believe, quote, "There are those with taste and no scale, and those with scale and no taste. And the idea of scaling taste is large and far-reaching. Our goal is to position RH as the arbiter of taste for the home has proven to be both disruptive and lucrative as we continue our quest to build one of the most admired brands, admired brands in the world."

So again, blowout numbers on the top and bottom lines. And let me give you the 2022 year forecast. Seeing revenue of 31 to 33%. Previously, they saw revenue of 25% to 30%, guys.

- Jared, what do you think investors are going to be looking at in this earnings call, because we know, although it looks like this stock is pretty tempered right now with shares only up just around 3%, but this is a stock that has often, has pretty wild swings after we get these results.

JARED BLIKRE: Yeah, I'm really-- I would be really interested to know what their input costs are looking at. We know everybody in every industry just about is experiencing supply chain constraints. And so, also, are they seeing elevated prices and are they passing those prices onto their consumers? If they have pricing power, it doesn't matter so much.

And we're seeing those operating margins still stay at those levels, near about 49, 50%, which is pretty impressive in the current environment. But do they foresee being able to carry that current trend into the future? I think that's what I would focus on on the call.

- Jared Blikre from the floor of the New York Stock Exchange. Thank you.