Restoration Hardware has announced unaudited preliminary financial results for the fourth quarter including diluted earnings per share of 21 cents and adjusted diluted EPS of 68 cents compared to guidance in the range of 60 cents to 70 cents.
The preliminary results also included net revenues of $587 million and adjusted net revenues of $590 million compared to net revenue guidance in the range of $562 million to $592 million.
For the year-earlier fourth quarter, RH posted net income of $33.3 million, or 79 cents per diluted share, and adjusted net income of $41.2 million, or 98 cents per share. Net revenues were $647.2 million in the year-prior quarter.
Gary Friedman, RH chairman and CEO, said, “As we exit fiscal 2016, we are now through the most uncertain stage of our transformation. As previously communicated, we have made several strategic investments and changes to our business model in fiscal 2016 that temporarily depressed financial results in the short term, and that we believe will strengthen our brand and position the business for accelerated growth in 2017 and beyond. These issues include the costs related to the launch of RH Modern, the timing of recognizing membership revenues related to the transition from a promotional to a membership model, efforts to reduce inventories and rationalize our SKU count, and the decision to push our 2016 source book mailing from spring 2016 to the fall of 2016.”
