RH rallies after reporting strong core demand, improved margins

• RH (NYSE:RH) says RH core demand was up 36% during FQ4. That momentum has continued, with the company saying core demand was up 73% in February and 96% for the first two weeks in March.
• Adjusted gross margin jumped 480 bps during FQ4 to 47.4% of sales. Operating margin rose 630 bps to 23.7% of sales.
• Management update: "The strategic separation we’ve created will continue to grow as we further elevate and expand the RH Brand with the introductions of RH Contemporary in 2021, plus RH Color, RH Couture and RH Bespoke over the next several years. Additionally our plan is to unveil The World of RH, a digital portal presenting our products, places, services and spaces this fall. We will begin to bring the different parts of our integrated ecosystem to life with rich content that we believe will enhance our brand and connect with our clients on a much deeper level."
• RH plans to open four new design galleries in 2021.
• Shares of RH are up 7.20% in AH trading.
• Heading into this year, RH was called the most intriguing story in retail by Wells Fargo.

Comments

[Adambombfx]

Beautiful ! may trim a bit more if we see $535.00 tomorrow.

[magenta17]

Excellent quarter! Buffett dancing a jig with his DQ and cherry coke in hand! Long RH! :-)