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HR furniture retailer, formerly Restoration Hardware, reported on Wednesday its fourth-quarter revenue and sales exceeded Wall Street estimates as it continued to see robust demand for high-end furniture and household items.
CEO Gary Friedman said the momentum is expected to continue this year as well, and revenue is expected to grow by 15% to 20% year-on-year in 2021. This includes expected sales growth at least 50% in the first quarter, he said. , as the company ends a period in which brick and mortar stores were temporarily closed due to the Covid pandemic.
“The fact that we have a booming real estate market, a record stock market, low interest rates, the expectation of a rebound in the economy and the labor market, combined with the recent acceleration in demand trends , makes us feel more than less optimistic, “Friedman said in a letter to shareholders.
HR shares rose more than 9% in off-hours trading.
Here’s how the company did during the quarter ended Jan. 30 compared to what analysts expected, who were surveyed by Refinitiv:
- Earnings per share: $ 5.07 vs. $ 4.76 projected
- Revenue: $ 813 million vs. $ 798 million projected
It reported a net profit of $ 130.19 million, or $ 4.31 per share, compared to $ 68.43 million or $ 2.66 per share, a year earlier. Excluding single charges, it earned $ 5.07 per share, better than the $ 4.76 expected by analysts.
Net income grew to $ 812.44 million, up from $ 664.98 million a year earlier. Adjusting for the cost of goods sold and inventory charges associated with product recall, the company reported revenue of $ 812.62 million, exceeding the $ 798 million projected by analysts.
During fiscal 2020, HR sales increased 8% to $ 2.858 billion.
“We are building the most complete and attractive collection of luxury furniture in the world,” Friedman said. “The convenience and exclusivity of our amplified product in our inspiring spaces has allowed us to gain significant market share.”
HR plans for growth in the coming years include expanding further into food, hospitality and even housing construction.
The company plots a residential community in Aspen, Colorado. In the fall, it will open its first Guesthouse concept in New York City. Next year it will bring its stores to Europe, England and Paris.
HR also hopes this year will be the most important for product launches in the company’s history. He said it halted the launch of new home and exterior collections in 2020 due to the pandemic. But this week it is sending a catalog to customers this week, with ten new outdoor collections, he said, starting a massive deployment.
HR shares have risen more than 375% in the past twelve months, as of Wednesday’s market close. It has a market capitalization of $ 9.3 billion.
Find the full HR press release here.