Shares of Restoration Hardware Holdings jumped as much as 13 percent Friday after the company posted stronger-than-expected quarterly earnings and maintained its full year outlook.
The furniture and home furnishings retailer posted fiscal second-quarter earnings of 44 cents per share on revenue of $543 million Friday. Analysts expected 29 cents a share on revenue of $511 million, according to a Thomson Reuters consensus estimate.
Gary Friedman, Chairman and CEO, said the quarterly results are due to the company's ability to ship products earlier than anticipated, which resulted in a "pull forward" of revenue and earnings from the third quarter.
"We remain confident in our outlook for the remainder of fiscal 2016 and are maintaining our net revenue and adjusted diluted EPS guidance for the year," Friendman said in a press release.
The company expects revenue growth for fiscal year 2016 in the range of 1 percent to 3 percent. It expects earnings per share in the range of $1.60 to $1.80 and capital expenditures in the range of 180 million to $210 million.
The stock later pared some of those gains, ending the day 3 percent higher. Restoration's stock is down 54 percent year-to-date.
RH 2016 Chart