X
<

What to Expect from RH’s 2Q17 Earnings

PART:
1 2 3
Part 2
What to Expect from RH’s 2Q17 Earnings PART 2 OF 3

Analysts Expect RH to Post Higher Revenue in 2Q17

Revenue source

RH (RH) earns its revenue from direct sales and store sales. By the end of 1Q17, the company operated a total of 85 retail galleries, which generated 56% of the total revenue. The remaining 44% of its revenue was generated from direct sales.

Analysts Expect RH to Post Higher Revenue in 2Q17

Interested in RH? Don't miss the next report.

Receive e-mail alerts for new research on RH

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Revenue estimates

For 2Q17, analysts expect RH to post revenue of $606.3 million, which represents 11.6% growth from $543.4 million. The revenue growth is expected to be driven by the addition of new stores, membership growth and renewals, positive comparable brand sales, and the Waterworks acquisition on May 27, 2016.

In May 2017, the company mailed its second edition of the RH Modern sourcebook to its customers. The 480-page sourcebook included new collections by world-renowned designers. The new sourcebook, along with membership and renewal growth, is expected to drive the company’s revenue from retail galleries.

Compared to 84 retail galleries in 2Q16, the company operated one more gallery by the end of 1Q17. The addition of a new retail gallery and the galleries opened in 2Q17 are expected to drive RH’s revenue in 2Q17.

Peer comparisons

During the same period, Williams-Sonoma (WSM) posted revenue growth of 3.7%, while Bed Bath & Beyond’s (BBBY) revenue is expected to rise 0.7%.

Outlook

For 2017, RH’s management set the revenue guidance at $2.4 billion–$2.45 billion, which represents 12.2%–14.6% growth from 2016. The revenue growth is expected to be driven by opening three next generation Design Galleries in 2017 and rolling out an integrated food and beverage experience at its galleries under RH Hospitality.

For the next four quarters, analysts expect the company to post revenue of $2.47 billion, which represents 9.9% growth from $2.24 billion in the same four quarters the previous year.

In the next part, we’ll look at RH’s 2Q17 earnings.

X

Please select a profession that best describes you: