The furniture retailer RH (NYSE: RH) announced its first-quarter financial results on Thursday, June 10. As a result of the company’s continued sales growth, sales are expected to increase by more than 27 % by the end of the year.
Home furnishings and premium furniture are the main items sold in RH furniture stores. The goal of the retailer is to create an environment that makes shopping easier. Aside from selling furniture directly, RH also provides additional services, such as family lunches in a shop restaurant and designer services. The purpose of doing this is to encourage buyers to spend as much time as they can in the showrooms. Recently, RH began opening stores in a new format. The property covers over 5,000 square meters, including terraces, winter gardens, and numerous other areas of interest. Currently, RH operates nearly 40 outlet stores and approximately 70 galleries.
Due to lockdown, people wanted to improve their apartments and houses, so interest in RH (NYSE: RH) goods was high during the pandemic. Although the economy is recovering, demand remains strong. As a result, RH’s revenue jumped 78% to $861 million in the first quarter. The company itself attributes strong sales to deferred demand and sees this trend continuing into the medium term.
The company’s earnings per diluted share were $4.89, an increase of 285 % year-on-year. In addition, the company reported a considerable increase in adjusted operating margins to 22.6 %. This is 1260 basis points higher than the 10 % rate in the previous year. RH strengthened its performance throughout the year as a result of its first-quarter performance. Data suggests that the retailer’s sales will grow by approximately 27 % this year (in the middle of the forecast range). By comparison, the earlier forecast was for an increase of 17%.
In Friday’s session, RH (NYSE: RH) shares fell -3.48% to $682.52. The volume of shares traded was 0.94 million shares, which was more than the average daily volume of 0.57 million shares within the past 50 days. During the past 12 months, shares of RH rose 197.24%, and they rose 11.30% in the last week. The stock has gained 44.60% over the past three months, while it has gained 45.89% over the past six months. Additionally, the company currently has a market capitalization of $14.87 billion and 21.00 million outstanding shares.