Net revenue increased 11% to $957 million from $861 million for the same period in 2021. Net profit was $201 million, a 54% increase from $131 million. dollars last year, while adjusted diluted earnings per share for the quarter were $7.78, a 59% jump from $4.89.
In the management statement accompanying the results, Gary Friedman, president and CEO of HR, said the Corte Madera, Calif.-based retailer saw value in going against the grain, and the results of the quarter show the wisdom of this state of mind.
“While there has been a widespread return of discounts to our industry, as evidenced by the barrage of sales emails filling our inboxes, and there may be a short-term risk of loss of market share by choosing not to promote, we believe there is some long-term risk of brand erosion and model destruction once you go down this path,” Friedman said. “It is this discipline and long-term thinking that has allowed us to set new standards for financial performance in the furniture industry and our results now mirror those of leading luxury brands, operating margin adjusted for the first quarter having reached 24.7% compared to 22.6% a year a year ago.”
Friedman called 2022 “the year of the new” for RH and noted a number of initiatives that have taken place or are planned for this year, including the opening of RH San Francisco and the launch of RH Contemporary as well as the unveiling of the first RH Guesthouse in New York; the launch of The World of RH, its new digital portal; the take-off of the RH1 and RH2, the customized Gulfstream G650 and G550 which will be available for charter later this year; the christening of the RH3, a luxury yacht which will be available for charter in the Mediterranean and the Caribbean; and new galleries planned in the UK, Palo Alto, California and more.
Noting slowing consumer demand, Friedman adjusted the second quarter forecast: net sales down 1% to 3% (up 39% from last year), with a margin adjusted operating income of around 23% to 23.5%, compared to 26.6% a year ago. FY2022 net revenue growth of between 0% and 2%, compared to a 32% increase last year, with an adjusted operating margin between 23% and 24%, compared to 25.6 % one year ago.
Thomas Lester is Retail Editor for Furniture Today and Digital Editor for Home Accents Today. A graduate of Emory & Henry College’s mass communications program, Lester spent a dozen years working for newspapers in Virginia and North Carolina covering a range of topics, from community news, government, education, ACC sports, professional baseball and more before joining Furniture Today. in 2013. Contact me with your story ideas, tips and more at email@example.com.