RH Reports Robust Financial Results for Q2 FY2024 Ending on September 7 2023

☀️Earnings Overview

On September 7 2023, RH ($NYSE:RH) reported their financial results for the second quarter of FY2024, ending on July 31 2023. Total revenue declined by 19.3% to USD 800.5 million compared to the same period last year. Net income for the quarter plummeted 37.5% to USD 76.5 million from the same quarter in the prior year.

Stock Price

The company’s stock opened at $370.3 and closed at $368.6, a decrease of 1.3% from the previous closing price of $373.3. The operating margin increase was driven by improved revenue growth and cost reductions. Overall, shareholders should remain confident in RH’s financial performance in Q2 FY2024, as the company’s strong top and bottom line growth shows that it is on track to achieve its long-term goals. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Rh. RH_Reports_Robust_Financial_Results_for_Q2_FY2024_Ending_on_September_7_2023″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Rh. RH_Reports_Robust_Financial_Results_for_Q2_FY2024_Ending_on_September_7_2023″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Rh. RH_Reports_Robust_Financial_Results_for_Q2_FY2024_Ending_on_September_7_2023″>More…

Key Ratios Snapshot

Some of the financial key ratios for Rh are shown below. RH_Reports_Robust_Financial_Results_for_Q2_FY2024_Ending_on_September_7_2023″>More…

Analysis

GoodWhale has conducted an analysis of RH‘s financials and based on our Star Chart, RH has a high health score of 7/10 with regard to its cashflows and debt. This indicates that RH is capable to sustain future operations in times of crisis. Furthermore, based on our classifications, RH is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given their strong performance in terms of profitability, medium performance in growth, and weak performance in asset and dividends, we believe that investors with a moderate-risk appetite may be interested in RH. They are likely looking for an established company that is able to return good returns in a relatively safe environment. Furthermore, the ability of RH to sustain operations in times of crisis should be attractive to investors. More…

Peers

Furnishing a home can be a daunting task, but with the help of a reliable home décor company, it can be a fun and exciting experience.

However, RH is not the only home décor company out there. Other popular home décor companies include Maisons du Monde (France), 1847 Goedeker Inc. (USA), and BHG Group AB (Sweden).

– Maisons du Monde France SA ($BER:ZMM)

As of 2022, Maisons du Monde France SA has a market cap of 484.17M and a Return on Equity of 9.35%. The company is a leading retailer of home furnishings and decoration in France.

– 1847 Goedeker Inc ($NYSEAM:GOED)

BHG Group AB, through its subsidiaries, provides services in the areas of healthcare, education, and social services in Sweden. The company offers healthcare services, such as medical care, nursing care, and home healthcare; educational services, including preschools, schools, and adult education; and social services comprising housing and residential care, employment and integration, and crime prevention. As of 2022, the company had a market cap of 2.87B and a ROE of 0.01%.

Summary

Investors have reacted negatively to RH‘s financial results for the second quarter of FY2024, with total revenue down 19.3% from the same time period the previous year and net income down 37.5%. This marks a substantial decline in performance from the year prior, resulting in a decrease in share price upon release of the results. Analysts have cited increasing competition and higher costs as the primary contributors to the decline in earnings. While investors remain concerned, they are hopeful that RH will be able to rebound and return to growth in the coming quarters.