Executive Summary

• RH reported preliminary 4Q EPS of $0.99 versus expectations of $1.39 and provided a business update.
• Total 4Q revenue is expected to be $647.2 million versus consensus of $711.1 million. Comps were up +9% in the quarter. Demand sales/written orders, which is the value of orders booked by customers during the period were up 21% during 4Q.
• Management cited three factors that had a negative effect on 4Q results: 1) shipping delays in RH Modern product, 2) weakness in markets affected by energy, oil or currency fluctuations and 3) a slowdown in spending by high-end consumers.