2018 revenue expectations
For 2018, RH’s (RH) management expects the company’s revenue to be $2.5 billion–$2.6 billion, which represents a growth of 5%–7%. Management lowered its revenue guidance by ~$50 million due to the delay in the opening of its New York Design Gallery and its first Guesthouse. The New York Design Gallery is scheduled to open in the fall of 2018, while the Guesthouse is scheduled to open in the spring of 2019.
Analysts are expecting RH to post revenue of $2.5 billion in 2017, which represents a growth of 4.6% from $2.4 billion in 2017. Revenue growth is expected to be driven by the opening of new Design Galleries, positive comparable brand revenue growth, and growth in direct sales.
RH opened a Design Gallery in Toronto in October 2017 and in West Palm Beach in November 2017. The company’s comparable brand revenue growth is expected to be driven by growth in hospitality revenues and the translation of hospitality revenues into retail revenues.
RH released its 2018 RH Outdoor Source Book on March 26, 2018. The new sourcebook, which features extensive and integrated assortments of outdoor furniture, is expected to drive the company’s direct sales.