NEW YORK (AP) — Restoration Hardware's stock jumped in premarket trading Friday as the home products chain's first-quarter results topped analysts' estimates and it raised its full-year forecasts. It also gave a second-quarter outlook above expectations.
Its shares climbed more than 13 percent in premarket trading ahead of Friday's opening.
In addition, the company announced after the market closed Thursday that it plans to start two new businesses — RH Kitchen and Tableware and RH Antiquities — late next year.
The kitchen and tableware business will concentrate on kitchen furniture, appliances, lighting, cookware, tools, and food. The antiquities business will look to serve the needs of shoppers looking for antiques.
Restoration Hardware— which went public in November — has rebranded itself as RH and is focusing on high-end furnishings rather than its Americana, nostalgia-based roots.
The company is several years into a turnaround. Restoration Hardware was losing money when it was bought by a private equity firm in in 2008. It has since redesigned stores, revamped its product line and focused on a higher-end market.
For the period ended May 4, Restoration Hardware reported adjusted earnings of 6 cents per share on revenue of $301.3 million. Analysts surveyed by FactSet expected earnings of 4 cents per share on revenue of $298.9 million.
The company now anticipates full-year adjusted earnings in a range of $1.41 to $1.47 per share, with revenue up 23 percent to 27 percent. Its prior guidance called for adjusted earnings of $1.29 per share to $1.37 per share with a revenue increase of 19 percent to 22 percent.
Wall Street expects earnings of $1.40 per share on revenue of $1.48 billion.
In the second quarter, Restoration Hardware is looking for adjusted earnings of 40 cents to 42 cents per share. Revenue is forecast to climb 28 percent to 30 percent.
Analysts expect earnings of 38 cents per share on revenue of $350.9 million.
In connection with the new business plans, the company named Richard Harvey as chief merchandising officer for the kitchen and tableware business. Harvey most recently served as president of the Williams-Sonoma brand.
RH Kitchen and Tableware is expected to launch in late 2014.
Shares of Restoration Hardware Holdings Inc. rose $7.36, or 13.3 percent, to $66.77 before the market open Friday. That would top its previous high of $60 per share set on Thursday if it holds up once the market opens.