RH Q1 results top estimates, but cut to margin outlook weighs

Ivesting.com -- RH reported Thursday first-quarter results that topped Wall Street estimates, and lifted its annual revenue guidance but trimmed its outlook on margins as it looks to ramp up markdowns to clear inventory.  

RH (NYSE:RH) was down 3% in after-hours trading following the report. 

The company, which specializes in furnishings and fittings for luxury homes, reported adjusted EPS of $2.21 on revenue of $739.9 million, topping analyst estimates for EPS of $2.12 on revenue of $732M.

The beat on the top and bottom lines come despite the decline of the overall macro environment, especially for home-related businesses.

Looking ahead, RH lifted its revenue outlook for fiscal 2023 to a range of $3.00B to $3.10B, but lowered its outlook for adjusted operating margin to a range of 14.5% to 15.5%, on costs related to the ramp-up of its global expansion. That compared to prior estimates for fiscal 2023 revenues in the range of $2.9 to $3.10 billion and adjusted operating margin in the range of 15% to 17%.

"[W]e are now forecasting increased markdowns to clear discontinued inventory required to support our product transformation over the next several quarters," the company said, adding that its expects the "luxury housing market and broader economy to remain challenging throughout fiscal 2023 and into next year."

For Q2, revenue was guided in a range of of $765 to $775M and adjusted operating margin in the range of 14% to 14.5%.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888
    E:  info@ofmarkets.com

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: