For the fourth quarter of fiscal 2018, RH’s (RH) management expects its revenue to be in the range of $680 million–$690 million. For the same period, analysts expect the company to post revenue of $686.5 million, which represents a rise of 2.4% from $670.3 million in the fourth quarter of fiscal 2017.
The addition of new galleries, positive same-store sales growth, and growth in its direct sales are expected to drive RH’s revenue in the quarter. However, RH’s fourth quarter will have one fewer week of operations compared to 14 weeks in the fourth quarter of fiscal 2017, which could offset some of the growth in its revenue.
In 2018, RH opened four new galleries: the Portland gallery on April 9, the Nashville gallery on July 2, the New York gallery on September 12, and the RH Yountville gallery in Napa Valley on December 6. The opening of these four retail galleries has increased the company’s gallery count to 87 compared to 83 in the fourth quarter of 2017. The addition of these four new galleries is expected to drive the company’s revenue during the quarter.
The company launched RH Interiors and RH Modern Source Books in July 2018. Along with these launches, growth in the hospitality business and an increase in membership are expected to drive the company’s SSSG.
For fiscal 2019, RH’s management expects its revenue to be in the range of $2.72 billion–$2.82 billion, which represents a year-over-year rise of 8%–12%. Analysts expect the company to post revenue of $2.76 billion for the same period, which represents a rise of 9.4% from $2.52 billion in fiscal 2018.