Tiger Global Management's positions in the fourth quarter

Part 2
Tiger Global Management's positions in the fourth quarter (Part 2 of 7)

Tiger Global initiates a position in Restoration Hardware Holding

Tiger Global and Restoration Hardware Holding

Tiger Global started new positions in Restoration Hardware Holding (RH), Vipshop Holdings Ltd (VIPS), Gap Inc. (GPS), sold UTi Worldwide (UTIW), and increased its stakes in Priceline (PCLN) and TransDigm Group Incorporated (TDG).

Tiger Global initiated a 1.52% new position in Restoration Hardware Holding (RH), a luxury retailer in the home furnishings marketplace.

RHEnlarge GraphRestoration Hardware Holding, which launched its IPO in late 2012, offers dominant merchandise assortments across a growing number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware, and children’s furnishings. As of November 2, 2013, Restoration Hardware operated a total of 70 retail stores, consisting of 62 galleries, five full line design galleries, three baby and child galleries, and 17 outlet stores throughout the U.S. and Canada.

Although the company’s 3Q results beat street expectations, shares fell after the company announced co-CEO Carlos Alberini’s resignation to become the chairman and CEO of Lucky Brand. Net revenues for the third quarter of fiscal 2013 increased 39% to $395.8 million from $284.2 million for the third quarter of fiscal 2012. Comparable store sales increased 29% for the third quarter of fiscal 2013. Adjusted diluted EPS increased 357% to $0.32 for the third quarter of fiscal 2013 from $0.07 for the third quarter of fiscal 2012. For the fourth quarter, the company expects net revenues in the range of $490 million to $500 million and the adjusted diluted EPS to range from $0.82 to $0.85.

RH hedgeEnlarge GraphAlthough retail stocks were down at the beginning of the year on weak holiday forecasts, analysts are bullish about the luxury furniture and accessories retailer as the company has strong growth and valuations, and has benefited from the U.S. housing recovery.

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