Restoration Hardware is out with third quarter results and shares are up 13% after hours because they were much better than feared. The company is not shy about sharing its views on the economy so the call will later be famous.
Here are some macro highlights of the release:
- “The positive turnaround of our business continued to gain momentum with demand in the third quarter increasing by 13% despite operating in the worst housing market in 30 years.”
- “We do not expect a negative impact on margins due to the latest communication regarding the possibility of tax increases in 2025. We have been proactive in moving away from China over the past years and we intend to leave the country completely before the end of the second quarter.”
- The company promoted guidance: “Q4 total demand growth of 20% to 22%, and revenue growth of 18% to 20%”
I would file this under: The wealthy and upper middle class have been doing very well in this economy, and the recent gains in the stock market will help.
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