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%. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: Weekly US and UK Store Openings and Closures Tracker 2023, Week 4: UK Closures Down 29%Three Data Points We’re Watching This WeekWhat Silicon Valley Bank’s Downfall Means for Retail TechRetail Shrink and ORC: Losing Inventory, Losing Customers—US Consumers’ Response to Theft