RH will release quarterly results on Wednesday June 9th
RH (NYSE: RH), formerly known as Restoration Hardware, is an American upscale home decorating company. The company curates designs and styles in the luxury lifestyle market. RH sells its goods through its retail stores, catalog and online. RH operates 70 galleries, 18 full-line design galleries, and six baby and children’s galleries. The luxury lifestyle company also has 36 outlet stores in the US and Canada.
On Wednesday May 26th, RH announced that financial results for the first quarter of fiscal year 2021 will be released on Wednesday June 9th after the market closes. RH’s FY 2021 first quarter financial results press release will include a letter to shareholders from Chairman and CEO Gary Friedman.
Looking back at the retailer’s earnings reports since 2020, RH managed to beat earnings expectations in all four quarterly reports from last year. For the first quarter of 2020, RH beat analysts’ estimates with a margin of $ 0.23 per share and reported earnings per share (EPS) of $ 1.27. For the second quarter of 2020, the retailer’s earnings rose to $ 4.90 per share, beating expectations with a margin of $ 1.49. For the third quarter of 2020, RH posted another increase in earnings, rising to $ 6.20 per share, beating estimates by $ 0.90. For the final quarter of 2020, RH reported earnings per share of $ 5.07, beating expectations by $ 0.31. Analysts expect EH to post earnings per share of $ 4.07 for the first quarter of 2021.
The price of RH shares has almost tripled compared to a year ago, supported by the rising 100-day moving average and, more recently, by the 50-day moving average. The latter worked quickly to capture RH’s retreat from its late April record high of $ 733.05. Shares are up 43% since the start of the year.
Overall, considering its high valuation, RH stock may be best suited for long-term investors. RH has only increased sales 16.7% since 2018, making it difficult to justify the sky-high price / earnings ratio of 61.76 as well as the inflated price / earnings ratio of 30.67. However, RH’s sales growth is much more positive: the company increased its net income by 23.7% in 2020 and by 81% since 2018. In general, it may be better for investors to wait for a better entry point after RH stock’s massive uptrend.