-=Restoration Hardware (RH) reported earnings on Tue 27 March 18 (a/h)

Restoration Hardware beats by $0.15, reports revs in-line; guides Q1 EPS above consensus, revs below consensus; guides FY19 EPS above consensus, revs below consensus 

• Reports Q4 (Jan) earnings of $1.69 per share, excluding non-recurring items, $0.15 better thanthe Capital IQ Consensus of $1.54; revenues rose 14.2% year/year to $670 mln vs the $672.39 mln Capital IQ Consensus.
• Co issues mixed guidance for Q1, sees EPS of $0.95-1.05, excluding non-recurring items, vs. $0.57 Capital IQ Consensus Estimate; sees Q1 revs of $555-565 mln vs. $589.77 mln Capital IQ Consensus Estimate.
• Co issues mixed guidance for FY19, sees EPS of $5.45-6.20, excluding non-recurring items, vs. $5.50 Capital IQ Consensus Estimate; sees FY19 revs of $2.53-2.57 bln vs. $2.59 bln Capital IQ Consensus Estimate, representing growth of 5% to 7% on a comparable 52-week vs. 52-week basis. The Company's net revenue outlook is ~$50 million lower than its prior expectations due to its decision to delay the opening of its New York Design Gallery (now scheduled for Fall 2018) and the Company's first Guesthouse (now scheduled for Spring 2019) as a result of the ongoing disruption from the city's street and infrastructure construction in the Meatpacking District. Additionally, the Company does not plan to launch any new businesses in 2018 outside of RH Hospitality while it remains focused on designing an operating platform that aligns with and amplifies its luxury positioning. Adjusted gross margin in the range of 37.7% to 38.5% and adjusted SG&A as a percentage of revenue in the range of 28.3% to 28.5%.
• "We remain confident in our long term goal of $4 to $5 billion in North American revenues with industry leading operating margins and returns on invested capital. We also believe there is tremendous potential for the RH brand internationally, and we continue to explore opportunities to open our first Gallery in London."
• The Company plans to pivot towards revenue growth in fiscal 2019, by accelerating its disruptive real estate transformation and returning to its product and business expansion strategy, which has been on hold while architecting its new operating platform. Net revenue growth is expected to reaccelerate to a range of 8% to 12%. 
• As the Company continues to gain benefits from its move to membership, a simplified and more efficient operating platform and cycles the current investment drag from its hospitality initiatives, operating margins are now expected to reach the low to mid-teens by 2021.