© Reuters. RH (RH) Posts Q4 Earnings Beat on Light Revenue, Announces 3-for-1 Stock Split
RH (NYSE:) reported its fourth-quarter results Tuesday, with EPS coming in at $5.66, above the consensus estimate of $5.57. Revenue rose 11% to $902.7 million but missed the consensus estimate of $931.07 million as COVID-19 magnified supply chain issues.
The company expects Q1/22 net revenue growth to range from 7% to 8%, with an adjusted operating margin of 23.0%-23.5%. For the full 2022-year, the company expects net revenue growth to range from 5% to 7%, with an adjusted operating margin of 25.0%-26.0%.
The company also made an announcement today, according to which it plans to execute a 3-for-1 stock split (expected in Spring) of its common stock, viewing it as appropriate, given the substantial appreciation in the share price since the IPO in 2012.
Furthermore, the company announced that its Chairman and CEO Gary Friedman plans to sell a portion of shares (approximately 1.7 million shares of common stock) from the 2.9 million options expiring in connection with the ten-year anniversary of the companys IPO. Friedman will retain beneficial ownership of approximately 5.7 million shares (21% of total common stock outstanding) following the option exercise and sell.
Shares are trading fractionally higher after-hours following the news.
By Davit Kirakosyan
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