Free Research Report as RH’s Revenue Grew 7.9%; Adjusted EPS Soared 420%

Stock Monitor: Bed Bath & Beyond Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 04, 2018 / Active-Investors.com has just released a free earnings report on RH (NYSE: RH). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RH. The Company posted its financial results on December 05, 2017, for the third quarter fiscal 2017. The furniture and housewares Company’s adjusted EPS was in line with analysts’ expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Bed Bath & Beyond Inc. (NASDAQ: BBBY), which also belongs to the Services sector as the Company RH. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=BBBY

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, RH most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=RH

Earnings Highlights and Summary

For three months ended October 28, 2017, RH’s net revenue increased 7.9% to $592.47 million from $549.33 million in Q3 FY16. For the reported quarter, the Company’s comparable brand revenues growth was 6% compared to negative 6% in Q3 FY16. The Company’s net revenue was below analysts’ expectations of $599.2 million.

As on October 28, 2017, the Company had 84 stores compared to 85 stores on October 29, 2016.

During Q3 FY17, RH’s gross profit increased 21.9% to $214.33 million from $175.82 million in the same period last year. For the reported quarter, the Company’s gross margin increased 420 basis points to 36.2% of revenue from 32.0% of revenue in Q3 FY16. For the reported quarter, the Company’s adjusted gross margin increased 460 basis points to 36.9% of revenue from 32.3% of revenue in Q3 FY16.

During Q3 FY17, RH’s operating income increased 180.4% to $43.16 million from $15.39 million in the same period last year. For the reported quarter, the Company’s operating margin increased 450 basis points to 7.3% of revenue from 2.8% of revenue in Q3 FY16. For the reported quarter, the Company’s adjusted operating margin increased 480 basis points to 8.1% of revenue from 3.3% of revenue in Q3 FY16.

During Q3 FY17, RH’s earnings before tax (EBT) increased 350.5% to $19.37 million from $4.30 million in the same period last year. For the reported quarter, the Company’s EBT margin increased 250 basis points to 3.3% of revenue from 0.8% of revenue in Q3 FY16.

For the reported quarter, RH’s net income increased 421.8% to $13.15 million, on a y-o-y basis from $2.52 million in Q3 FY16. During Q3 FY17, the Company’s diluted EPS increased 833.3% to $0.56 on a y-o-y basis from $0.06 in the same period last year. RH’s adjusted net income increased 204.5% to $24.42 million on a y-o-y basis in Q3 FY17 from $8.02 million in Q3 FY16. During Q3 FY17, the Company’s adjusted diluted EPS increased 420% to $1.04 on a y-o-y basis from $0.20 in the same period last year. Adjusted diluted EPS was in-line with analysts’ expectations of $1.04.

Balance Sheet

As on October 28, 2017, RH’s cash and cash equivalents decreased 74.5% to $22.16 million from $87.02 million on January 28, 2017.

For the reported quarter, the Company’s merchandise inventories decreased 25.9% to $557.35 million from $752.30 million in Q4 FY16. The Company’s accounts payable and accrued expenses increased 11.3% to $252.57 million in Q4 FY17 from $226.98 million in Q4 FY16.

In the first nine months of 2017, the Company’s net cash provided by operating activities was positive $386.76 million compared to negative $18.99 million in the same period last year. In the first nine months of 2017, the Company’s free cash flow was positive $303.29 million compared to negative $127.39 million in the same period last year.

Outlook

For Q4 FY17, the Company expects revenue to be in the range of $655 million to $680 million and adjusted net income to be in the range of $37 million to $41 million.

For FY17, the Company expects revenue to be in the range of $2.43 billion to $2.45 billion and adjusted net income to be in the band of $83 million to $87 million.

Stock Performance Snapshot

January 03, 2018 – At Wednesday’s closing bell, RH’s stock advanced 1.63%, ending the trading session at $91.23.

Volume traded for the day: 1.12 million shares.

Stock performance in the last three-month – up 22.87%; previous six-month period – up 35.42%; past twelve-month period – up 192.87%; and year-to-date – up 5.82%

After yesterday’s close, RH’s market cap was at $2.05 billion.

Price to Earnings (P/E) ratio was at 218.25.

The stock is part of the Services sector, categorized under the Home Furnishing Stores industry. This sector was up 0.5% at the end of the session.

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