Executive Summary

• Restoration Hardware reported 2Q18 adjusted EPS of $2.49, up from $0.65 in the year-ago period and above the $1.75 consensus estimate. Revenues were $640.8 million, up 4.1% year over year but below the $660.9 million consensus estimate.
• Comps were up 5%, following a 7% increase in the year-ago quarter, but were below the 8% consensus estimate.
• The company raised its FY18 EPS outlook to $7.35–$7.75 from $6.34–$6.83 previously; the consensus estimate calls for full-year EPS of $6.72. The company lowered its $2.53–$2.57 billion revenue guidance by 2%, implying that it now expects full-year revenues of $2.49–$2.52 billion. That range is below the $2.56 billion consensus estimate and would represent 4%–5% growth over2017.