Wednesday’s Headlines: RH Set to Split
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lovesac (LOVE) +20.8%
Upstart Holdings (UPST) +11.1%
Lemonade (LMND) +11.1%
DraftKings (DKNG) +10.9%
Yext (YEXT) +10.2%
Moving Down ⬇️
IMAX (IMAX) -1.9%
Ericsson (ERIC) -1.2%
The New York Times (NYT) -0.6%
TrueCar (TRUE) -0.5%
1. Premium-furniture manufacturer RH (RH) revealed its fourth-quarter and fiscal 2021 earnings last night, while also surprising investors with a stock split announcement. The firm posted earnings per share (EPS) of $5.66 against an expected $5.59, but missed on revenue expectations with $902 million coming in below the anticipated $931 million. The outlook for fiscal 2022 also missed analyst forecasts, with full year sales growth of between 5% and 7% failing to hit the 10% anticipated by Wall Street. RH also announced a 3-for-1 stock split which is likely to occur this spring. The firm believes that “a stock split is appropriate in view of the substantial appreciation that has occurred in the share price since the 2012 initial public offering.” Click here for the full earnings report.
2. Shares in Lovesac (LOVE) spiked by over 20% yesterday following a massively positive earnings call. The modular furniture company beat analyst estimates across the board, posting adjusted EPS of $2.03 against an expected $1.51, on revenue of $196.2 million versus a predicted $174.34. CEO Shawn Nelson effused that “Lovesac’s continued strong financial performance in the face of a myriad of macro and industry shifts affirms the power of our unique business model and products.” With quarterly sales growth of 51.3% and growth of 55.3% for the fiscal year, it’s hard to disagree with him. Growth of this magnitude, despite increases in costs such as warehousing and freight, shows strong potential for the rest of the year. Read the full earnings report here.
3. Lululemon (LULU) also benefitted from a positive earnings call, with strong sales and a confident outlook for the year boosting its stock price. The athletic apparel company posted EPS of $3.36 against an expected $3.27, on net revenue of $2.1 billion. Having warned shareholders in January that figures could be low, these results will be more than welcome. The firm also announced its 2022 outlook, with revenue for the full year expected to come in between $7.49 billion and $7.62 billion, while analysts had only predicted $7.30 billion. Profit expectations of between $9.15 and $9.35 per share also come in ahead of an anticipated $9.06 from analysts. Check out the full report here.
Get this week’s full earnings calendar here.