Restoration Hardware beats by $0.04, beats on revs; guides Q4 EPS below consensus, revs below consensus:
- Reports Q3 (Oct) earnings of $0.20 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.16; revenues rose 3.2% year/year to $549.3 mln vs the $527.38 mln Capital IQ Consensus. In addition, our margins continued to be negatively impacted by many of the temporal factors impacting our fiscal 2016 earnings in addition to one-time costs associated with the remodel and refresh of our legacy Galleries during the quarter."
- Co issues downside guidance for Q4, sees EPS of $0.60-0.70, excluding non-recurring items, vs. $1.07 Capital IQ Consensus Estimate; sees Q4 revs of $562-592 mln vs. $639.18 mln Capital IQ Consensus Estimate.
- "Guidance Commentary: "First, our business in November was below our expectations, which we largely attribute to consumer softness related to the US election and our Fall 2016 Source Books getting in homes later than planned. While our Fall 2016 Source Books began mailing in mid-September, the vast majority of the circulation is just getting in homes over the last few weeks versus our original expectations for the Books to be building earlier in the mailing cycle. This is resulting in a shift of sales that would have been booked in the fourth quarter into the first quarter of next year. In addition, sales of our Holiday Collection are trending lower than our expectations."
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