Shares of Restoration Hardware (RH) are taking a 10.4% drubbing AH after the company's Q3 report beat expectations and a raised Q4 outlook meets analyst expectations. However, co-CEO Carlos Alberini will step down at the end of Jan. to become CEO of Lucky Brand. The company will initiate a search for a replacement.
Management raises Q4 guidance to revenue of $490M-$500M (vs. analyst consensus of $497.2M) and EPS of $0.82-$0.85 (vs. $0.85).
Revenue grew 39% Y/Y to $395.8M, accelerating from a 22% increase in Q3 2012. Direct revenue grew 47% on top of a 24% increase in the same period last year.
Comparable store sales rose 29% Y/Y, an identical clip to Q3 2012.
Operating income skyrocketed 299% to $23.9M as the company leveraged SG&A, which decreased 570 bp Y/Y to 29.5% of revenue.