Restoration Hardware Surges on Sales Forecast
Restoration Hardware Holdings Inc. (RH), the home furnishings chain that went public in November, surged after forecasting quarterly revenue and profit that topped analysts’ estimates.
The shares advanced 16 percent to $68.47 at the close in New York and have almost tripled since Restoration Hardware went public on Nov. 1.
Sales will be as much as $380 million in the second quarter, the Corte Madera, California-based home goods retailer said yesterday in a statement. Analysts projected $351 million, according to estimates compiled by Bloomberg. Adjusted earnings for the second quarter will be as much as 42 cents, topping analysts’ projections of 38 cents.
Restoration Hardware is becoming a “brand phenomenon” as it takes advantage of demand and a lack of options for high-end home furnishings, David Schick, an analyst for Stifel Financial Corp. in Baltimore, wrote today in a note to clients. Schick recommends holding the shares.
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