RH Gears Up to Report Q1 Earnings: Here's What to Expect
RH RH is scheduled to report first-quarter fiscal 2024 (ended May 4, 2024) results on Jun 13, after market close.
In the last reported quarter, this leading luxury home furnishings retailer’s earnings and revenues lagged the Zacks Consensus Estimate by 57.9% and 5%, respectively. Also, the earnings and revenues decreased 75% and 4.4%, respectively, from the year-ago level.
The company beat earnings expectations in 22 of the last 26 quarters, missed on three occasions, and met once.
Trend in Estimate Revisions
For the quarter to be reported, the Zacks Consensus Estimate has narrowed to a loss of 8 cents per share from 11 cents over the last seven days. The estimated figure indicates a decrease of 103.6% from earnings per share of $2.21 reported in the year-ago quarter.
RH Price and EPS Surprise
RH price-eps-surprise | RH Quote
The consensus mark for revenues is pegged at $724.67 million, suggesting a 2% decline from the year-ago reported figure.
Factors to Note
RH’s fiscal first-quarter results are likely to be affected by high mortgage rates and tepid demand. While RH primarily caters to affluent households, it has been encountering challenges due to increased interest rates and a softening luxury housing market, affecting its demand dynamics. Additionally, higher expenses, including international openings and clearance pressure, are expected to have weighed on results.
Nonetheless, the company has been working on various strategies to elevate and enhance the RH brand image, which is expected to have contributed to the quarterly performance. RH’s strategy to digitally reimagine the RH brand and business model both internally and externally bodes well.
The Zacks Consensus Estimate for the company’s Furniture unit is currently pegged at $502 million, which depicts an improvement from $496 million a year ago. The same for the non-furniture unit is pegged at $215 million for the quarter, down from $243 million a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for RH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: The company has an Earnings ESP of +445.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: RH currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
We have highlighted three better-ranked stocks from the Consumer Staple sector, namely Freshpet, Inc. FRPT, Vital Farms, Inc. VITL and PepsiCo Inc. PEP.
Freshpet, a pet food company, has a trailing four-quarter earnings surprise of 118.2%, on average. FRPT currently sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 24.8% and 177.1%, respectively, from the prior-year reported level.
Vital Farms offers a range of produced pasture-raised foods. VITL currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 102.1%, on average.
The consensus estimate for Vital Farms’ current financial year’s sales and earnings per share indicates growth of 22.5% and 59.3%, respectively, from the year-ago reported figures.
PepsiCo, a leading global food and beverage company, currently carries a Zacks Rank #2. PEP has a trailing four-quarter earnings surprise of 5.1%, on average.
The Zacks Consensus Estimate for PEP’s current financial-year sales and earnings indicates growth of 3.4% and 7.1%, respectively, from the year-earlier actuals.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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