RH (NYSE: RH) reported Q4 EPS of $5.66, $0.09 better than the analyst estimate of $5.57. Revenue for the quarter came in at $902.7 million versus the consensus estimate of $931.07 million.

BUSINESS OUTLOOK

• While we enter 2022 with confidence that our efforts will continue to elevate and expand the RH brand for years to come, we also recognize there are several external factors, such as record inflation, rising interest rates and global unrest, that create uncertainty.
• Although we lack the ability to predict economic outcomes on a macro scale, we do have the business model, strategy and balance sheet to take advantage of opportunities that may present themselves whether it be during times of economic expansion, contraction or dislocation.
• While first quarter sales and margin trends remain healthy due to the ongoing relief of our backlog, we have experienced softening demand in the first quarter that coincided with Russia’s invasion of Ukraine in late February and the market volatility that followed.
• We believe it is prudent to remain conservative until demand trends return to normal and are providing the following outlook for the first quarter and fiscal 2022: First quarter net revenue growth in the range of 7% to 8%, versus 78% last year, with adjusted operating margin in the range of 23.0% to 23.5%, versus 22.6% a year ago.
• Fiscal 2022 net revenue growth in the range of 5% to 7%, versus 32% last year, with adjusted operating margin in the range of 25.0% to 26.0%, versus 25.6% in 2021. Our outlook is inclusive of opening RH San Francisco in late spring, the RH Guesthouse in early summer, RH England in mid-tolate summer and RH Palo Alto in the fourth quarter.

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