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Monday, Jul 29
Wells Fargo defends Restoration Hardware after Barron's pan
- Analyst Matt Nemer comes to Restoration Hardware's (RH -3.4%) defense, addressing issues raised by Barron's over the weekend.
- In response to the suggestion that RH takes too long to amortize its catalog expenses thus boosting near-term earnings, Nemer says that although the amortization period has lengthened, it is "appropriate, in line with other retailers, and in accordance with GAAP."
- Nemer also says the company only excludes onetime stock-based compensation charges from adjusted earnings — "all recurring stock based compensation" is included.