Benzinga | Sep 9, 2021 07:24AM EDT

RH Q2 Earnings Smashes Estimates, Lifts FY21 Outlook

* RH (NYSE:RH) reported second-quarter FY21 sales growth of 39% year-on-year, to $988.86 million, beating the analyst consensus of $975.45 million.

* The gross profit increased 46.7% Y/Y to $487 million, with the margin expanding 240 basis points to 49.3%.

* The adjusted operating margin improved 480 basis points to 26.6%, and adjusted operating income for the quarter rose 70% to $263 million.

* The company held $291.5 million in cash and equivalents as of July 31, 2021.

* Net cash provided by operating activities totaled $125.8 million with a free cash flow of $94.5 million.

* Adjusted EBITDA of $290 million increased 56.3% Y/Y.

* Adjusted EPS of $8.48 beat the analyst consensus of $6.48.

* The company said it sees price increases in most of its product categories due to supply chain challenges.

* Outlook: RH has raised FY21 revenue growth outlook to 31% - 33% (prior 25% - 30%).

* Price Action: RH shares closed higher by 1.26% at $672.65 on Wednesday.