Shorts Get Squeezed as RH Stock Jumps 25% After Significant Guidance Increase

Shorts Get Squeezed as RH Stock Jumps 25% After Significant Guidance Increase

Shares of RH (NYSE: RH), a luxury retailer in the home furnishings market, were up 25.6% as of 12:08 p.m. EST Thursday after the company raised third-quarter and full-year guidance.

RH, which sells furniture, lighting, outdoor and garden products through its retail galleries and website, now expects its adjusted net revenues for its fiscal Q3 to be roughly $592.5 million, 8% higher than the prior year and above the prior $575 million to $590 million guidance range. Adjusted earnings per share for the third-quarter are expected to land between $1.02 to $1.04, despite a $0.05 per share negative impact from Hurricanes Harvey and Irma.

RH's new earnings guidance is a massive jump from the prior range of $0.68 to $0.80 per share. Management also bumped up full-year guidance; net income is expected to check in between $82 million and $87 million, compared to the previous forecast range of $70 million to $77 million, with a slight decline in capital expenditures to boot. 

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Source: Fool.com