Restoration Hardware Holdings, Inc. (RH), a company that operates as a retailer in home furnishings, has surged 12.14% in aftermarket trading session. As a result, RH stock is trading at $646.99 at the time of the writing. The surge could be attributed to the announcement of quarterly results. On Wednesday, RH closed the day at $576.96 after slightly increasing by 0.11% during regular trading hours.
Why RH Surging?
On Wednesday, RH released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th October. The company generated net revenue of $1 billion during the quarter against $844 million for the same period of 2020. The company generated an income of $272.5 million from the operations against $111.2 million for the same period of 2020. The net income generated by the company during the quarter stood at $184 million against $46.4 million for the same period of 2020.
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Financial Guidance for FY 2021
Alongside the operational results, RH also released the financial guidance for the fiscal year 2021. The company believes that for the fiscal year 2021, it would be able to achieve revenue growth of 32% to 33%. Compared to that, during earlier estimates, it expected the revenue to grow by 31% to 33% during fiscal 2021. The adjusted operating margin for fiscal 2021 is expected to fall in the range of 25.3% to 25.5% against the previous estimates of 24.9% to 25.5%.
Gary Friedman, CEO of RH, while commenting on the results said that the company is pleased to report yet another quarter of extraordinary growth and success. The performance of the company demonstrates the desirability of the company’s exclusive products and its ability to overcome the compounding supply chain challenges.
Future Outlook for RH
The last three months have seen RH stock significantly decline by more than 20%. That depicts the uncertainty associated with the stock. However, looking at the more recent stats, the stock is expected to make significant progress during the coming days.