October 20, 2021

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Design your heritage

RH Stock: Earnings Due As Luxury Retailer Rides Still-Hot Renovation Trend; Shares Near Buy Point

Upscale home furnishings retailer RH (RH) reports fourth-quarter results after the market close today as the remodeling trend shows no signs of a slowdown. RH stock dipped.




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RH Earnings

Estimates: Analysts expect RH earnings to rise 28.5% to $4.78 vs. the year-ago period, according to Zacks Investment Research. They see sales increasing 20% to $796.5 million.

Results: Check back later.

Formerly known as Restoration Hardware, RH sells high-end home furnishings through retail galleries in the U.S. and Canada, source books and online.

The company has stayed the course on an aggressive plan to open stores, even as the pandemic forced other retailers to postpone openings or close existing stores.

In July, it opened a 60,000-square-foot location in Marin, Calif. The location included a rooftop restaurant. RH plans to open four new design galleries in North America in 2021 and is preparing a big push into Europe.

Additionally, RH plans to expand its brand beyond the $200 billion home furnishings and furniture market. It eyes the hotel business with new RH Guesthouses, the first one slated for New York City sometime this year. RH also plans to enter the $1.7 trillion housing market with RH Residences.

RH Stock

Shares fell 1.3% to 502.04 on the stock market today. On Monday, RH cleared a consolidation going back to mid-January with a 524.32 buy point, but fell back below that entry on Tuesday.

Last week, RH stock rebounded from its 50-day line, according to MarketSmith chart analysis.

RH’s relative strength line has been mostly flat but still near highs achieved earlier this year. The RS line tracks a stock’s performance vs. the S&P 500 index. Its improving earnings lately earned RH an EPS Rating of 98 out of a best-possible 99. And the Composite Rating is at 95.

Rival Williams-Sonoma (WSM) dropped 5%. WSM stock gapped past a 151.56 buy point to 161.57 on March 18, following earnings, racing to an all-time intraday high of 184.32 on Tuesday.

Meanwhile, At Home (HOME) sank 10%, after tumbling 7.3% on Tuesday. Late Tuesday, the home furniture retailer reported stronger-than-expected earnings, but sales growth slowed.

Home furnishings e-tailer Wayfair (W) dipped 0.3% to 335. Wayfair stock closed above a 343.09 handle buy point on Monday, but has dipped back below that level.

Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.

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