Restoration Hardware almost made it two full quarters without imploding. Alas, it was not meant to be.
After reporting abysmal numbers in Q3 2016, Q1 2016, Q4 2015 – when the company went so far to blame its own crashing stock price for poor earnings – RH stock more than doubled after its better than expected Q4 2016 numbers as long-suffering investors (not to mentioned squeezed shorts) assumed that that was finally it: that the company has finally turned the corner.
Alas, it was not meant to be, and moments ago the volatile retailer reported non-GAA{ Q1 EPS and revenue of 5 cents and $562.1MM respectively (GAAP loss was $0.09) in line with what the company had previously guided.
However it was once again the company’s disturbing guidance that surprised investors, as the company slashed not only its Q2 byt also Full Year earnings far beyond what could be considered a simple revision.
Specifically, while RH sees Q2 net revenue of $595m to $610m, better than the estimated $581.26MM, the problem was Q2 earnings, which the company sees in the range of 0.38c to 0.43c, wildly missing estimates of 64.48c, and coming even below the lowest estimate in the range of 53c to 75c).
This post was published at Zero Hedge on Jun 1, 2017.
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