Insight Report 2 minutes PremiumRestoration Hardware (RH) 3Q16 Results: EPS Tops Estimate, but Company Lowers FY16 Guidance, Citing Slow Holiday Sales and Business-Model Changes Coresight Research December 9, 2016 Executive Summary Restoration Hardware reported 3Q16 adjusted EPS of $0.20, ahead of the $0.16 consensus estimate but down 69.2% year over year. Revenues rose by 3.1% from the year-ago quarter, to $549.3 million, also beating the consensus estimate, which called for revenues of $527.7 million. Comps, including direct revenues, declined by 6% year over year, compared with a 7% increase in the prior-year period and consensus of (12.8)%. Management attributed the decline to disruption related to the company’s transition from a promotional business model to a membership model, the timing of recognizing membership revenues related to the transition and efforts to reduce inventories. Restoration Hardware lowered its FY16 guidance, citing “consumer softness” related to the US election and a later-than-planned launch of its fall catalog, which has affected sales of its Holiday Collection. The company now expects adjusted EPS of $1.19–$1.29, versus previous guidance of $1.60–$1.80 and the $1.64 consensus estimate. Full-year revenues are now expected to be $2.11–$2.14 billion, which represents growth of 0%–1%, versus previous guidance of 1%–3%. This report is for paying subscribers only. Already a paying subscriber? Please log in to see the entire report.If you wish to learn more about our subscription plans and become a paying subscriber, click here. This document was generated for Other research you may be interested in: Earnings Insights 1Q23, Week 1: Albertsons, Crocs, Procter & Gamble, Skechers and More Post Positive Results; Amazon’s Online Sales ImproveCoresight Bites: US Furniture and Home Furnishings—E-Commerce Penetration DeepensMore Active Consumers Proliferate Ahead of Memorial Day: US Consumer Tracker 2023, Week 22Shifting Shopper Behavior Amid Pessimism: China Consumer Survey Insights