RH Set to Announce Q1 Earnings with Significant EPS Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Earnings Announcement Date: RH is scheduled to release its Q1 earnings on June 11th after market close, with a consensus EPS estimate of -$2.07, reflecting a staggering 1692.3% year-over-year decline, indicating severe profitability challenges ahead.
- Revenue Decline Forecast: The anticipated revenue for Q1 stands at $792.38 million, down 2.7% year-over-year, highlighting ongoing sales growth challenges that could adversely affect the company's market performance.
- Historical Performance Review: Over the past two years, RH has only beaten EPS estimates 25% of the time and revenue estimates 38% of the time, showcasing instability in profitability and revenue growth that may erode investor confidence.
- Estimate Revision Trends: In the last three months, there have been no upward revisions for EPS or revenue estimates, with 12 downward revisions for each, indicating a generally pessimistic outlook from the market regarding RH's future performance, which could impact stock price.
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Analyst Views on RH
Wall Street analysts forecast RH stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 159.320
Low
144.00
Averages
214.00
High
283.00
Current: 159.320
Low
144.00
Averages
214.00
High
283.00
About RH
RH is a retailer and luxury lifestyle brand operating primarily in the home furnishings market. The Company offers collections through its retail galleries, sourcebooks, and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com. The Company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby, child and teen furnishings. Its segments include RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks segments include all sales channels accessed by its customers, including sales through retail locations and outlets, including hospitality, websites, sourcebooks, and the trade and contract channels. The Real Estate segment represents operations associated with certain of its equity method investments and consolidated variable interest entities that are non-wholly owned subsidiaries and have operations that are not directly related to its segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- International Expansion Pressure: While planning for international expansion, the preopening and startup costs in Q1 negatively impacted adjusted EBITDA margins by approximately 450 basis points, with this pressure expected to persist in upcoming quarters.
- Market Strategy Shift: By launching RH Estates and other new concepts, RH aims to break down traditional market barriers, which is expected to enhance brand penetration in the luxury market while providing exclusive programs for designers and architects to increase customer loyalty.
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