RH stock declines after earnings beat, mixed outlook

RH shares (RH) slipped in the extended session Thursday after the retailer formerly known as Restoration Hardware beat Wall Street expectations for the quarter, but offered a mixed outlook. RH declined 3% after hours, following a 2% rise in the regular session to close at $254.63. Shares are down 4.7% year to date, versus a 8.1% gain by the S&P 500 index . The company reported first-quarter net income of $41.9 million, or $2.12 a share, compared with $200.7 million, or $7.22 a share, in the year-ago period. Adjusted earnings were $2.21 a share, compared with $6.63 a share in the year-ago period. Revenue declined to $739.1 million from $957.3 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $2.12 a share on revenue of $732.1 million. For the year, RH said it was raising its revenue outlook to $3 billion to $3.1 billion, but said it was lowering its adjusted operating margin to a range of 14.5% to 15.5%. Analysts had forecast revenue of $3.06 billion.

-Wallace Witkowski

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05-25-23 1638ET

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