RH (RH) said Q4 GAAP net revenues of $670.3 million, an increase of 14% from the year-ago period, and adjusted net revenues of $669.7 million, an increase of 13% versus last year. The CapIQ mean was for $672.4 million.
GAAP EPS fell to $0.01 from $0.23 last year but adjusted EPS jumped 149% to $1.69. Estimates were for $1.46 GAAP and $1.54 normalized.
It sees 2018 adjusted operating margins between 9.2% to 10.2%, while generating free cash flow in excess of $250 million. Adjusted gross margins are expected to increase 260 to 340 basis points, adjusted net income between $145million to $165 million, an increase of 63% to 85% over last year, and versus prior guidance of $125 million to $145 million, reflecting the benefits of a more efficient operating platform with an expected tax rate of 26%.
2018 net revenue is seen between $2.53 billion to $2.57 billion, below estimates for $2.59 billion. Adjusted EPS are seen between $5.45 to $6.20, in line with estimates for $5.50.
Q1 sales are seen between $555 million to $565 million, below forecasts for $589.8 million. Adjusted EPS are seen between $0.95 to $1.05, above expectations for $0.57 normalized.