Wells Fargo defends Restoration Hardware after Barron's pan

|About: Restoration Hardware (RH)|By:, SA News Editor

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.