Shares of luxury home goods retailer Restoration Hardware are up more than 11% after hours following a better-than-expected earnings report.
Restoration Hardware reported first quarter adjusted earnings of $US0.18 per share against expectations for $US0.14, on revenue of $US366.7 million against expectations for $US347.7 million.
The company also raised its fiscal-year adjusted earnings view to earnings per share $US2.24 to $US2.30 on revenues of $US1.86 billion to $US1.89 billion.
“RH continued to outperform the home furnishings industry by a wide margin in the first quarter of 2014,” CEO Gary Friedman said.
Net revenues increased 22% on top of a 38% increase last year. Comparable brand revenues increased 18% on top of 39% last year, with a 57% two-year growth period that is tops in the industry.
Friedman added that once the company’s real estate transformation in North America is complete, it expects to deliver sales of $US4 billion to $US5 billion annually, with operating margins in the mid-teens and “significant” free cash flow.
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