Shares of luxury home goods retailer Restoration Hardware are up more than 11% after hours following a better-than-expected earnings report.
Restoration Hardware reported first quarter adjusted earnings of $0.18 per share against expectations for $0.14, on revenue of $366.7 million against expectations for $347.7 million.
The company also raised its fiscal-year adjusted earnings view to earnings per share $2.24 to $2.30 on revenues of $1.86 billion to $1.89 billion.
"RH continued to outperform the home furnishings industry by a wide margin in the first quarter of 2014," CEO Gary Friedman said.
Net revenues increased 22% on top of a 38% increase last year. Comparable brand revenues increased 18% on top of 39% last year, with a 57% two-year growth period that is tops in the industry.
Friedman added that once the company's real estate transformation in North America is complete, it expects to deliver sales of $4 billion to $5 billion annually, with operating margins in the mid-teens and "significant" free cash flow.