By Christiana Sciaudone
Investing.com — Luxury home furnishings are a trend we should’ve been able to call at the rate things have been going.
Restoration Hardware shares are soaring 23% Thursday after the retailer reported earnings per share of $4.90 versus the expected $3.36 on sales of $709.28 million, which compares to the expected $696 million.
The news comes following Home Depot Inc (NYSE:)’s biggest bump in same-store sales in some two decades, and Lowe’s (NYSE:) saw better-than-expected comparable-store sales for the second quarter.
But while Home Depot warned that the good times couldn’t last, Restoration Hardware says, “our record margins and profitability are systemic. We are benefiting from the COVID-driven shift of spending in favor of the home, but this has coincided with a systemic shift and leapfrog of our operating model to a level unseen before in our industry.”
RH (NYSE:), the parent company of Restoration Hardware, also says it is now a “luxury brand generating luxury margins,” and believes it will reach 20% adjusted operating margin in fiscal 2020.
The company is not providing guidance, but said core demand is growing, up 47% in August versus a year ago, and up 44% in the first 10 days of the fiscal month of September.
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