By Dhirendra Tripathi
Investing.com – RH (NYSE:RH) stock climbed 12% in Thursday’s premarket trading after robust third-quarter results led the company to lift the low end of its annual revenue outlook.
Third-quarter net revenue rose 19% to top $1 billion as the company rode a booming housing market to sell more of its upmarket hand-crafted rugs and bed linen.
In its third revision of the year, the company said its annual revenue is likely to grow by 32%-33% compared to the previous forecast of a 31%-33% rise. The company had booked $2.84 billion in net revenue for the year ended January 30, 2021.
The company also expects to withstand any pressure on profit margins from continued shipping and port delays. Adjusted operating margin is seen a tad higher at 25.4% at the center of the guidance range, compared to 25.2% at midpoint of the previous forecast and an improvement of 360 basis points from last year. One basis point is one-hundredth of a percent.
Adjusted net income rose 25% to $209 million, helped by control of selling, general and administrative expenses and by lower interest costs.