RH Forecasts 4.5%–8% Revenue Growth as Shares Jump 7.49%
RH•Analysts revised RH’s earnings estimates down by 20.9%, prompting a Zacks Rank #5 Strong Sell rating while KeyBanc maintained a neutral Sector Weight. Despite this, RH raised its fiscal year revenue growth target to 4.5%–8% on new luxury offerings and its shares jumped 7.49% in active trading.
1. Mixed Analyst Ratings
Zacks placed RH in a Strong Sell rank after cutting the consensus earnings estimate by 20.9% over the past 60 days, while KeyBanc retained a Sector Weight rating, reflecting divergent views on near-term performance.
2. Upgraded Revenue Growth Forecast
RH raised its fiscal year revenue growth target to a range of 4.5%–8%, attributing the increase to planned launches of high-end home furnishings and expansion in its luxury product lineup.
3. Stock Performance Surge
The stock jumped 7.49% on the day of the announcements, trading between $147.24 and $159.82 on volume of 1.63 million shares, with a market capitalization near $3.02 billion.
