Restoration Hardware Hits New Low On Dull Q1, Weak View
Zacks Investment Research | Jun 09, 2016 10:31PM ET
Shares of Restoration Hardware Holdings, Inc. (NYSE:RH) hit a 52-week low of $28.83 on Jun 9. Shares of the luxury home furnishing company plummeted around 21% since it reported dismal first quarter 2016 results and lowered its full-year sales and earnings outlook on Jun 8.
Dismal Q1 Results
The company recorded a loss of 5 cents per share in the first quarter of 2016. With this, it missed the Zacks Consensus Estimate which called for earnings of 5 cents, by a massive 200%. It also failed to meet the earnings guidance of 4 cents to 6 cents. The loss per share was in stark contrast to the prior-year earnings of 23 cents per share.
Even its top line results were bleak, as revenues of $455.5 million missed the consensus estimate of $459 million by 0.75%. Revenues grew 8% during the quarter. Comparable brand revenue increased 4% during the quarter, falling short of 11% in the previous quarter and 15% in the prior-year quarter.
Adjusted operating margin of 0.2% fell 420 basis points in the quarter.
What is Hurting Restoration Hardware?
Most of the problems leading to the disappointing first quarter were short term operational problems, but were damaging enough for the company to lose over 64% year to date.
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