RH Stock Jumps on Outlook Boost, Swing to Profit | Global News Avenue

Relative humidity (relative humidityShares rose premarket after the luxury home furnishings retailer raised its full-year forecast and swung to a profit in the third quarter.

The company expects full-year revenue to grow 6.8% to 7.2%, up from its previous forecast of 5% to 7%.

In the third quarter, RH revenue was US$811.7 million, up from US$751.3 million in the same period last year. Earnings per share (EPS) The company, formerly Restoration Hardware, had net income of $1.66, an improvement from a loss of $0.12 a year ago.

The stock was up about 18% in early trading.

CEO notes growth despite softening housing market

“While our housing market is the worst in 30 years, the positive impact on our business continues to build, with demand growing 13% in the third quarter,” Chief Executive Officer (CEO) Gary Friedman said in a statement.

Friedman said he doesn’t expect President-elect Donald Trump’s plans to hurt the company’s profit margins. raise tariffs About America’s major trading partners.

“We have been aggressively shifting sourcing away from China over the past few years and expect to fully exit China by the end of the second quarter,” he said. “We are also transitioning products manufactured in Mexico and believe we can successfully reposition our procurement without disrupting the supply chain.”

RH shares have risen about 30% this year through Thursday.