What Restoration Hardware's Earnings Mean for Mutual Fund Investors (RH)

After Wednesday’s closing bell, Restoration Hardware (RH) released its third quarter financial results and boosted its outlook for 2015.

Inside RH’s Results

Earnings

The company reported profits of $19.4 million, or 47 cents per share, up from $9.5 million, or 23 cents per share, reported for last year’s Q3. Excluding special items, earnings were $20.3 million, or 49 cents per share, compared to $13 million, or 32 cents per share, a year ago. On average, analysts expected to see EPS of 48 cents.

Revenue
Revenue rose 22% to $484.7 million from $395.8 million last year. Analysts expected to see $481.91 million.

Outlook
Looking ahead to Q4, the company expects to see adjusted earnings between $0.99 and $1.00, and revenue between $575 million and $585 million. Analysts expect to see earnings of $1.00 and $582.74 million in revenue.

For FY2015, RH expects to see earnings between $2.33 and $2.35 per share and revenue between $1.86 billion and $1.87 billion. Analysts expect to see earnings of $2.33 per share and $1.86 billion in revenue.

Mutual Funds to Watch

Investors seeking exposure to Restoration Hardware may consider a mutual fund investment as an alternative to directly owning the stock. The mutual funds below currently hold the largest stakes in RH.

The Bottom Line

The funds above allow investors to gain exposure to RH while still remaining diversified. Investors interested in RH may also be interested in Pier 1 Imports (PIR) and Williams Sonoma (WSM).

Shares of RH are up 45% YTD.