HR revenue jumped double digits in fiscal 2021
Corte Madera, Calif. — RH reported net revenue for fiscal year 2021 of $3.759 billion, a 32% increase from 2020 in its latest earnings report.
The report, released on March 29, also showed record results in the fourth quarter, which ended on January 29.
“We are pleased to report another year of record results with net revenue up 32% to $3.759 billion from $2.849 billion a year ago and up 42% from 2019,” he said. noted CEO Gary Friedman in his statement. “If you exclude online businesses that are losing money, that’s one of the highest two-year growth rates in our industry.”
For the year, net income increased to $689 million, up 153% from $272 million in fiscal 2020. Adjusted diluted earnings per share increased 46% to 26.12 $, down from $17.83 in 2020.
In the fourth quarter, HR net revenue reached $903 million, up 11% from $812 million in the same three-month period last year.
Net income increased 13% in the fourth quarter to $147 million from $130 million in 2020, while adjusted diluted earnings per share for 2021 was $5.66, up 12% from at $5.07.
Friedman believes the retailer will continue to grow, but offered a cautious outlook for RH’s first quarter and for 2022 based on a slight slowdown in market demand as well as global events, such as the invasion. of Ukraine by Russia. He advised first-quarter net revenue growth of around 7% to 8% versus 78% last year, with an adjusted operating margin of around 23% to 23.5%, against 22.6% a year ago. For fiscal year 2022, it set net revenue growth between 5% and 7%, compared to 32% last year, with an adjusted operating margin between 25% and 26% compared to 25.6% in 2021 .
The company plans to open RH San Francisco in late spring, RH Guesthouse in early summer, RH England in mid to late summer and RH Palo Alto in the fourth quarter.
“As we enter 2022 confident that our efforts will continue to elevate and expand the HR brand for years to come, we also recognize that there are several external factors, such as record inflation, rising interest rates and global turmoil, which create uncertainty,” he wrote. “While we don’t have the ability to predict economic outcomes on a macro scale, we have the business model, strategy and balance sheet to take advantage of opportunities that may arise, whether in tough times. economic expansion, contraction or dislocation.”