Shares of Restoration Hardware Holding Inc Drop with Weak Quarterly Results and Full Year Guidance
Restoration Hardware Holdings Inc's shares dropped on Wednesday during the after-hours trading. The company based in Corte Madera, California, failed to meet expectations as it reported its quarterly results.
The home furnishings retailer also trimmed its profit forecasts for the year. The company reported a loss of $13.5 million or 33 cents a share in the fiscal first-quarter. Last year, the company had reported a profit for the same three month period.
The quarterly results could not keep in line with average analysts estimates of earnings of 5 cents per share.
The loss which was adjusted for one-time gains and costs was five cents a share.
Restoration Hardware forecasts its full-year earnings to be in the range of $1.60 to $1.80 a share. Earlier, the company had said the expected incomes were mostly going to be flat or slightly down compared to last fiscal year's adjusted income of $2.72 a share. The average analysts' estimates were $2.66 per share.
The retailer attributed the weaker results to the headwinds faced by the energy sector and the currency and a "general slowdown in the luxury consumer market."
Restoration Hardware expects its earnings per share for the ongoing quarter, which ends in August, to be in a range of 28 to 33 cents.