$RH (+2.02%) Q3'24 Earnings Highlights
๐น EPS: $2.48 (Est. $2.65) ๐
๐น Revenue: $811.73M (Est. $812.16M) ๐ก; UP +8.1% YoY
๐ธExpects no margin impact from increased tariffs in 2025 ๐ข
Raised Guidance: ๐ข
๐น Q4 Total Demand Growth: 20%-22%
๐น Q4 Revenue Growth: 18%-20%
๐น FY Total Demand Growth: 9.9%-10.4%
๐น FY Revenue Growth: 6.8%-7.2%
Demand Trends:
๐ธ Q3 Total Demand: UP +13%
๐ธ RH Brand Demand: UP +14%
๐ธ November Demand: Accelerated to UP +18%
๐ธ December Trends: Month-to-date demand UP +30%
Q3 Financial Metrics:
๐น GAAP Operating Margin: 12.5%
๐น Adj Operating Margin: 15.0% (vs. 7.3% YoY)ย
๐น Adj EBITDA Margin: 20.8% (vs. 12.4% YoY)ย
Strategic Highlights:
๐ธ RH raised advertising investments by $6M, driving strong demand growth from the RH Modern Sourcebook release.
๐ธ Plans to launch RH Interiors Sourcebook and RH Outdoor Sourcebook in February 2025 with new collections.
๐ธ Waterworks showroom opened at RH Newport Beach, with potential to scale from ~$200M to a billion-dollar brand.
CEO Gary Friedmanโs Commentary:
๐ธ "Our business gained momentum in Q3, with demand accelerating further in Q4, positioning RH to drive significant market share gains."
Global Expansion:
๐ธ Openings planned for RH Paris and RH London in 2025, and RH Milan in 2026.
๐ธ Positive growth trends at RH England (+42% Gallery growth, +111% web business YoY).
Tariff Update:
๐ธ RH expects no margin impact from increased tariffs in 2025 due to proactive relocation of sourcing away from China.