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What you need to know
- RH stock is surging Friday in pre-market trading after the luxury furnishings retailer increased its outlook for full-year and reported a third quarter profit.
- Gary Friedman stated that the gains occurred despite the weak housing market.
- RH has raised sales forecasts at both its low- and high-end ranges.
RH shares rose premarket, after luxury home furnishings retailer RH raised its outlook for the full year and reported a third-quarter profit.
In comparison to the previous estimate of revenue growth between 5%-7%, the company now expects a 6.8%-7.2% increase for the entire year.
RH’s third-quarter revenue was $811,7 million, up from 751,3 million for the same time period in 2013. Restoration Hardware’s earnings per share were $1.66 compared to a loss of $0.12 a year ago.
Stocks rose in the early morning trading by 18%.
Even with a weakening housing market, CEOs still see gains
“The positive inflection of our business continued to gain momentum with third quarter demand increasing 13% despite operating in the worst housing market in 30 years,” Gary Friedman is the Chief Executive Officer of TI.
Friedman says he does not expect that President-elect Donald Trump’s plans to increase tariffs against the U.S.’s main trading partners will hurt the margins of the company.
"We have been proactively moving sourcing away from China over the past several years with the expectation of fully exiting the country by the end of the second quarter," he said. "We are also transitioning products manufactured in Mexico and believe we can successfully reposition our sourcing with no disruption to the supply chain. "
RH has gained about 30% in the past year, as of Thursday.
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