RH (RH) Tops Q3 EPS by 57c, Offers Q4 Guidance

December 4, 2019 4:27 PM EST

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RH (NYSE: RH) reported Q3 EPS of $2.79, $0.57 better than the analyst estimate of $2.22. Revenue for the quarter came in at $677.5 million versus the consensus estimate of $676.03 million.

GUIDANCE:

RH sees Q4 2019 EPS of $3.50-$3.62, versus the consensus of $3.58. RH sees Q4 2019 revenue of $703-711.5 million, versus the consensus of $709.4 million.

Increasing our long-term outlook

Looking forward, we see a clear path to over $5 billion in North America revenues, with high teens to low twenties operating margins and ROIC in excess of 50%. Additionally, we now believe there is an opportunity to build a $20 billion global brand as we expand internationally and further develop the RH ecosystem that will move the brand beyond creating and selling products to conceptualizing and selling spaces.

We are increasing our long-term targets to:

Net revenue growth of 8% to 12%

Adjusted operating margins in the high teens to low twenties

Adjusted net income growth of 15% to 20%

Return on invested capital (ROIC) in excess of 50%

For earnings history and earnings-related data on RH (RH) click here.



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