Analysts’ revenue estimates for 2018
In the first three quarters of 2018, RH (RH) posted revenues of $1.83 billion, which represents growth of 3.7% from $1.77 billion in the corresponding quarters of 2017. The revenue growth was driven by growth in both its store and direct sales. During the period, the revenue from store sales increased by 3.6%, while direct sales rose by 3.7%. During the period, the company’s comparable brand revenue grew by 3.0%.
RH’s management expects its revenue for the fourth quarter to be in the range of $680 million to $690 million, and for 2018 to be in the range of $2.52 billion to $2.53 billion. Analysts are expecting RH to post revenue of $686.6 million in the fourth quarter to take the company’s total revenue for 2018 to $2.53 billion, which represents growth of 3.4% from $2.44 billion in 2017.
Analysts’ revenue expectation for 2019
For 2019, RH’s management expects its revenue to be in the range of $2.72 billion to $2.82 billion, which represents growth of 8% to 12% from 2018.
Analysts expect RH to post revenue of $2.76 billion in 2019, which represents growth of 9.3% from $25.3 billion in 2018. The revenue growth is expected to be driven by the opening of new galleries and an increase in comparable brand revenue. The company is planning to open five galleries in 2019, and its first guest house in New York City. The company’s 2019 revenue growth will also be driven by the increased revenue from its RH New York with the completion of street work, and the addition of outdoor seating to the gallery in the spring of 2019. The management is also planning to extend its new brands and expand its assortments in 2019.
Next, we’ll look at analysts’ EPS expectations for 2018 and 2019.