Luxury home furnishings retailer RH (NYSE:RH) saw its shares jump over 17% in Friday’s pre-market trading following the release of its third-quarter earnings and an upward revision to its fourth-quarter and full-year outlook, fueled by accelerating demand growth.
For the third quarter, RH reported adjusted earnings per share of $2.48, falling short of analyst estimates of $2.66. Revenue, however, slightly exceeded expectations, reaching $812.73 million compared to the $812.5 million consensus, marking an 8.1% year-over-year increase.
Demand growth proved to be the standout metric for the quarter. Overall demand rose 13%, driven by a 14% increase in RH Brand demand. Momentum picked up in November, with total demand growth accelerating to 18% and RH Brand demand surging by 24%.
Buoyed by these strong trends, RH raised its guidance for the fourth quarter, forecasting total demand growth of 20% to 22% and revenue growth of 18% to 20%. For the full fiscal year, the company now anticipates total demand growth between 9.9% and 10.4%, alongside revenue growth of 6.8% to 7.2%.