Market Update

RH plunged 26.1% to $184.25 after the retailer of luxury home furniture and decorative products reported fourth quarter of 2024 results.

Revenue increased to $812.41 million from $738.26 million, net income jumped to $13.92 million from $11.38 million, and diluted earnings per share edged up to 69 cents from 57 cents a year ago.

For the full year, revenue climbed to $3.18 billion from $3.03 billion, net income slumped to $72.41 million from $127.56 million, and diluted earnings per share fell to $3.62 from $5.91 a year ago.

The company guided fiscal first quarter 2025 revenue growth to be between 12.5% and 7%, compared to $726.96 million a year ago, an adjusted operating margin of 6.5% to 7.0%, and an adjusted EBITDA margin of 12.5% to 13.0%.

For the full fiscal year 2025, the retailer estimated revenue growth to be between 10% and 13%, adjusted operating margin between 14% and 15%, and adjusted EBITDA margin between 20% and 21%.

The company intends to open seven design galleries, two outdoor galleries, and two new concept galleries during 2025.

“We believe post each opening we will begin to have the scale to support the necessary advertising investments to accelerate our growth in Europe,” the company said in a release to investors.

The lifestyle products retailer expects “an inflection of the business in Europe as the company begins to open in the important brand-building markets of Paris in 2025, plus London and Milan in 2026,” the company added in the statement.


03 Apr, 2025

 

Steelcase Inc. dropped 0.8% to $11.01 after the furniture design company reported increased revenue in the fiscal fourth quarter of 2025 ending in February.

Revenue jumped to $788.0 million from $775.2 million, net income climbed to $27.6 million from $21.3 million, and diluted earnings per share rose to 23 cents from 18 cents a year ago.

The company guided for the first quarter of 2026 revenue to be between $760 million and $785 million, compared to $727.3 million a year ago, and earnings per share between 10 cents and 14 cents, compared to 9 cents a year earlier.

Steelcase proposed a dividend of 10 cents per share in the quarter and 40 cents per share for the full year, unchanged from a year ago.

The dividend is payable on or before April 21 to shareholders on record as of April 7.

During fiscal 2025, the company repurchased 2.1 million shares for $26.5 million, and a total of $79.9 million remained under the company's share repurchase authorization at the end of the fourth quarter.

Revenue for the full year 2025 increased to $3.17 billion from $3.16 billion, net income edged up to $120.7 million from $81.1 million, and diluted earnings per share rose to $1.02 from 68 cents a year ago.

At the end of the fourth quarter, the company’s backlog was approximately $694 million, which was 11% higher than the prior year.

For fiscal 2026, Steelcase estimated “mid-single-digit” organic revenue growth and order growth rate and modest improvement in the adjusted operating income margin compared to fiscal 2025.

“The company will benefit from continued growth from large corporate customers, the strong beginning backlog of customer orders, and benefits from pricing actions that will offset the impacts of higher tariffs and related inflationary cost increases,” the company said in a release to investors.


01 Apr, 2025

 

Lululemon Athletica Inc. plunged 12.1% to $301.03, and the sports apparel retailer's results surpassed market expectations, but a weak outlook and tariff worries overshadowed the results. 

Revenue increased to $3.6 billion from $3.2 billion a year ago, net income jumped to $748.4 million from $669.45 million, and diluted earnings per share rose to $6.14 from $5.29 a year ago.

Improved results were driven by higher net revenue in all company segments: Americas, China, and the rest of the world.

Global comparable sales increased 3%, or 4% on a constant dollar basis.

Sales in the Americas region increased 7%, or 8% on a constant dollar basis, with comparable sales remaining flat in the quarter.

Sales in China surged 46%, or 48% on a constant dollar basis, with comparable sales advancing 26%, or 27% on a constant dollar basis.

Lululemon guided for fiscal 2025 revenue to be between $11.15 billion and $11.30 billion, or growth of only 5% to 7%, compared to $10.59 billion in 2024.

Diluted earnings per share are expected to be between $14.95 and $15.15 per share for the year, compared to $14.64 per share in 2024.

For the first quarter of 2025, the company estimated net revenue to be between $2.33 billion and $2.35 billion, or growth of 6% to 7%, compared to $2.21 billion a year ago, and diluted earnings per share between $2.53 and $2.58, compared to $2.54 in the same quarter a year ago.

China's net revenue was $425.0 million, or 12% of total revenue, compared to $290.7 million, or 9% of total revenue, in the fourth quarter of 2023.

Lululemon opened 13 new stores in China during the quarter, three net new stores in the Americas, and two new stores in its rest of the world segment.

Total company-operated stores at the end of the quarter increased to 747, compared to 711 for the same period in 2023.

During the quarter, the company repurchased 0.9 million shares for $332.2 million.


28 Mar, 2025