Ahead of the Bell: Restoration Hardware
Restoration Hardware shares jump after strong earnings
NEW YORK (AP) -- Shares of Restoration Hardware jumped 17 percent in premarket trading on Thursday after the furniture and housewares company reported stronger-than-expected results in its fiscal first quarter.
The Corte Madera, California, company also raised its outlook for the year, topping Wall Street's prediction.
Janney analyst David Strasser said the quarter provides more evidence that the "against-the-grain transformation is gaining momentum."
He said the company's decision to switch to a single catalog for the year was a gamble, it has paid off with cost cutting.
Restoration Hardware Holdings Inc. said Wednesday that it earned $1.8 million, or 4 cents per share, over the three months ending on May 3. A year ago the company lost $161,000, and it broke even on a per-share basis.
Excluding one-time items, its most recent profit came to 18 cents per share in the latest quarter. FactSet says analysts expected 11 cents per share.
"Restoration Hardware continues to take market share through its growing assortment, unique and innovative product introductions, and an increased footprint through larger galleries and an increased number of catalog pages," he wrote.
Shares rose $12.60, or 17.7 percent, to $83.95 during premarket trading. The stock had been up 6 percent for the year.
