=Restoration Hardware (RH) reported earnings on Thur 1 June 17 (a/h)

Restoration Hardware reports EPS in-line, revs in-line (co previously pre-announced quarter); co lowers FY18 EPS guidance, below consensus, revs in-line:

• Reports Q1 (Apr) earnings of $0.05 per share (co pre-announced EPS of $0.03-0.05), excluding non-recurring items, in-line with the Capital IQ Consensus of $0.05; revenues rose 23.4% year/year to $562.1 mln (co pre-announced revs at $558-562 mln) vs the $560.3 mln Capital IQ Consensus.
• Co lowers EPS guidance for FY18, sees EPS of $1.67-1.94, excluding non-recurring items, vs. $2.17 Capital IQ Consensus Estimate, down from $1.78-2.19; raises FY18 revs to $2.40-2.45 bln vs. $2.41 bln Capital IQ Consensus Estimate, from $2.3-2.4 bln.
  • Co said, "For fiscal 2017, we are increasing our revenue guidance to a range of $2.4 billion to $2.45 billion, reflecting a more aggressive approach to rationalizing our product offer, reducing inventories, and increasing free cash flow. While this approach will benefit revenues and cash flow for the year, it will have a negative impact on earnings. As a result, we are lowering our adjusted net income guidance from a range of $65 million to $80 million, to a range of $60 million to $70 million."