Latest news with #Waterworks
Yahoo
6 hours ago
- Business
- Yahoo
RH Q1 Earnings Top Estimates, Revenues Miss, Margins Up Y/Y
RH RH reported mixed first-quarter fiscal 2025 (ended May 3, 2025) results, with adjusted earnings topping the Zacks Consensus Estimate while net revenues missed the same. On a year-over-year basis, both metrics grew quarterly performance reflects benefits realized from the investments made to elevate and expand its product offerings and platform. Globally, the company witnessed share gains, with business in Europe being robust. The trends reflected from the increased contributions of the RH segment business, partially offset by soft contributions from the Waterworks in occupancy and shipping costs aided the margins during the quarter amid the uncertain global macro environment. Moving forward, RH aims to continue enhancing its platform and diversifying its product offerings to ensure revenue visibility even during a dicey macro stock soared 20.3% during yesterday's after-hours trading session, after the earnings announcement. The investors' sentiments are likely to have been boosted by an upbeat second-quarter and fiscal 2025 outlook. The company reported adjusted earnings per share of 13 cents, which topped the Zacks Consensus Estimate of a loss per share of nine cents by 244.4%. The reported figure compares favorably with the loss per share of 40 cents reported in the year-ago period. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) RH price-consensus-eps-surprise-chart | RH Quote Net revenues of $814 million marginally lagged the consensus mark of $818 million by 0.5% but improved 12% year over year. Net revenues from the RH segment increased year over year by 13% to $765 million, while the same for Waterworks tumbled 1.9% to $49 million. The gross margin expanded 20 basis points (bps) to 43.7% in the reported general & administrative expenses (as a percentage of total net revenues) expanded 80 bps to 36.8% year over operating margin expanded 50 bps year over year to 7%. Moreover, adjusted EBITDA increased 19.4% year over year to $106.4 million for the quarter, with adjusted EBITDA margin expanding 80 bps to 13.1%. As of May 3, 2025, RH's cash and cash equivalents were $46.1 million, up from $30.4 million at the end of fiscal 2024. The company ended the first quarter of fiscal 2025 with merchandise inventories worth $1.01 billion compared with $1.02 billion at the end of fiscal ended the quarter with a net debt of $2.57 billion and a net debt-to-adjusted EBITDA ratio of cash provided by operating activities was $86.6 million as of the fiscal first quarter compared with $56.1 million in the year-ago period. Free cash flow was $34.1 million against negative $10.1 million reported in the year-ago expenditures, as of May 3, 2025, were $52.6 million, down from $66.3 million in the year-ago period. The company expects the quarterly net revenues to grow between 8% and 10% year over operating margin is expected to be in the range of 15-16%, up from 11.7% reported in the prior-year EBITDA margin is forecasted between 20.5% and 21.5%, up from 17.2% reported in the prior-year quarter. For the fiscal year, RH still expects revenue growth between 10% and 13%.Adjusted operating margin is still expected to be between 14% and 15%, up from 11.3% reported in fiscal EBITDA margin is still expected between 20% and 21%, up from 16.9% reported last unveils its expectations of free cash flow to be between $250 million and $350 million. RH currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Zacks Consumer Staples Morris International Inc. PM presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks has a trailing four-quarter earnings surprise of 3.6%, on average. The company's shares have soared 52.3% year to date. The Zacks Consensus Estimate for Philip Morris' 2025 sales and earnings per share (EPS) implies an increase of 8.1% and 13.7%, respectively, from the prior-year Outlet Holding Corp. GO currently carries a Zacks Rank #2 (Buy). It delivered a trailing four-quarter earnings surprise of 25.7%, on average. The stock has tumbled 14.8% year to consensus estimate for Grocery Outlet's 2025 sales indicates an increase of 7.9% while EPS reflects a 3.9% decline from a year Parker Inc. WRBY presently carries a Zacks Rank of 2. It delivered a trailing four-quarter negative earnings surprise of 11.7%, on average. The stock has declined 6.7% year to Zacks Consensus Estimate for Warby Parker's 2025 sales and EPS indicates an increase of 14.1% and 79%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report RH (RH) : Free Stock Analysis Report Grocery Outlet Holding Corp. (GO) : Free Stock Analysis Report Warby Parker Inc. (WRBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Forbes
3 days ago
- Business
- Forbes
Costco And RH Add Extra Benefits For Their Most Valuable Membership Customers
Edmonton, Alberta, Canada. May 24, 2025. A clean and organized Costco Membership desk, showcasing ... More various membership tiers and the co-branded credit card, ready for new sign-ups. Costco and RH rely on higher-income customers to maintain robust sales. When both brands, in lockstep, boost benefits to their most valuable customers, it raises a key question: whether these enhanced benefits signal a shift in consumer behavior or a response to slowing demand in the face of economic headwinds. Both brands depend on the patronage of affluent consumers. Costco has the strongest appeal to customers at the $125,000 income level and higher, while nearly half of RH store visitors have incomes of $150,000 or more. And both rely on the outsized spending potential of affluents. Costco's highest-tier Executive members, who pay double the base amount for their membership, accounted for 73% of its $250 billion global net sales in 2024. RH derived a remarkable 98% of its $3 billion core RH revenues from its members – Waterworks added another $193 million to RH's topline last year. For Costco, membership fees largely go straight to the bottom line, so offering Gold Star and Business members an extra incentive to upgrade to the Executive level could be a boon to company profits, especially since gross margins are a slim 11% in product sales. For RH, membership fees help offset the generous discounts members receive, which just increased from a 25% to 30%. This may help RH attract new members, as memberships declined 6% this year, from 281,000 in 2023 to 265,000 in 2024. Memberships are an important driver for customer loyalty, more so for Costco with its emphasis on low-cost everyday consumables, but memberships certainly helps RH too. Why should its card-carrying members shop anywhere else when they get an extra 30% off just by walking into the store? Yet, Costco sells a significant amount of discretionary items, including furniture, so both are at risk should high-value customers choose to delay such purchases. Improving member benefits is a way to keep both retailers' most valuable customers engaged and give them a greater return on their membership investment. Later this month, Costco plans to open its doors one-hour early to Executive members, giving them more exclusive, less crowded and more time-efficient shopping experiences. In addition, last September, Costco increased the maximum annual 2% reward for executive members from $1,000 to $1,250. This higher payback came along with a 5% increase in all membership fees. The basic membership increased from $60 to $65 and executive membership went from $120 to $130. Overall, 35.4 million – 46% of Costco's 76.2 million paid members – held an executive-level membership, up from 45% in 2023 and 44% in 2022. Yet, in 2024, the $4.8 billion in revenues generated from membership fees rose only 5%, compared with 8% in 2023 and 9% in 2022. At the Sept. 1 close of fiscal 2024, it had yet to benefit from the fee increase. However, through in third quarter 2025 ended May 11, revenue growth from membership fees was back on par with 2022, up 9% to $3.6 billion, with paid membership up 7% to 79.6 million and executive memberships reaching 37.6 million. Membership renewals continue to top 90%. While opening Costco's doors an hour earlier is a minor convenience, combining it with raising the bar on executive members' cash-back rebates could be enough to incentivize more customers to buy-in at the executive level, potentially doubling the membership fees pocketed for each new executive member. And most of that gain will go to Costco's bottom line. In a nod to increasing value for members' $200 annual fee, RH has just increased its member discount from 25% to 30% on all regularly priced merchandise, except outdoor furniture where they earn a 35% discount. Members also continue to receive an extra 20% off sales items and complementary interior design services. The company stated, 'We are living in a time of more: more tariffs, politics, uncertainty. We voted to create more value.' Unlike Costco, RH doesn't report membership revenue but working the numbers, it amounts to just over $50 million annually, which helps offset the discounts. In a research note, Jefferies reports that recent price increases might 'neutralize margin headwind' from the greater member discount, though that has yet to show up on the balance sheet. It also might mean that RH has increased prices too much. 'We believe it's a move to avoid sales declines,' Jefferies said, adding that 'the pace of RH's ascent up the 'luxury mountain' appears to be slowing.' RH will report first-quarter 2025 earnings on June 12 after the market closes – I'll be listening – but this proactive move might be a way to energize investors ahead of the announcement. Jefferies expects revenues to reach $816 million, up 12% year-over-year, following a 2% drop in first quarter revenues last year. Two new gallery openings at the end of 2024 give RH momentum – it ended fiscal 2025 with 69 RH retail locations, including five in Europe – as does increased promotional activity, including the new Outdoor Sourcebook and an outdoor gallery in Greenwich, CT. However, the increased 35% discount on outdoor furniture raises questions about whether the outdoor expansion is living up to expectations. Despite operating in distinct spheres, Costco and RH both cater to affluent consumers who prioritize value in their memberships. Offering top-tier customers greater returns on their membership is a strategic move that will serve both retailers well to reinforce customer loyalty and grow their membership base.
Los Angeles Times
01-03-2025
- Business
- Los Angeles Times
Prime Little Holmby
Down to the studs and permitted with no expenses spared in prime Little Holmby. Double-height entry, grand staircase and seamless flow between living, dining and family areas. Expansive Panther Steel French doors open to a private backyard with pool, spa, cabana, bar, BBQ and multiple balconies. Chef's kitchen with Calacatta Borghini marble, Thermador and Waterworks fixtures. Luxurious Primary Suite with Juliet balconies, secured walk-in closet, spa-like bath, oversized steam shower. Additional 4 sunlit bedrooms, office and laundry. New plumbing, HVAC, electrical, recessed lights, electrical panel, doors, fireplaces, sound system, garage door/motor, comprehensive drainage. Location: 365 Comstock Ave., Little Holmby 90024 Asking price: $10,249,000 Living area: 5,375 square feet, 5 bedrooms, 6 bathrooms Features: Newly remodeled, curated materials include Red Oak hardwood flooring, Saltillo tiles, Minotti and Paul Ferrante lighting, Waterworks and Kallista fixtures, Waterworks Mosaic tile with Arabescato Carrara & Honey Onyx and honed Calacatta marble, European cabinetry, Baldwin hardware. Contact: Carolwood Estates Susân Perryman310.261.1960susan@ 01878839
