For the next four quarters, analysts are expecting RH (RH) to report revenues of $2.57 billion, which would be 8.9% higher than the $2.36 billion we saw in the corresponding four quarters of the previous year.
Despite the postponement of the opening of its New York Design Gallery, RH’s management is expecting to post revenues in the range of $655 million–$680 million in 4Q17 and $2.58 billion–$2.62 billion in 2018. The 4Q17 revenue expectation represents growth in the range of 11%–15.2%, while the 2018 revenues would represent a rise range of 6%–7%. However, after adjusting for 52 weeks, 2018 revenue growth is expected to be in the range of 8%–9%.
This revenue growth is expected to be driven by incremental sales from the new Design Gallery in Toronto, which was opened in October 2017, and the Design Gallery in West Palm Beach, which was opened in November 2017. These galleries boost integrated Cafe, Wine Vault, and Barista Bar, which have already received enthusiastic responses from customers.
RH plans to open its New York Design Gallery in the spring or summer of 2018, which could also boost its revenues in 2018. In 3Q17, 95% of its core business came from members, and so its revenues are expected to rise with an increase in membership.