: RH to restate quarterly results after errors in earnings-per-share calculations
RH, the retailer formerly known as Restoration Hardware, said in a filing late Friday that it will restate per-share earnings results for several periods after it found mistakes in the way it accounted for some pre-tax losses related to debt payments.
RH also updated its fiscal 2022 revenue outlook, saying it expects a revenue drop to around the lower end of the range it gave in December. The company then called for a revenue decline between 3.5% and 4.5%, from a previous outlook of a revenue decline between 3.5% and 5.5%.
The stock fell more than 3% in after-hours trading Friday after ending the regular trading day down 1%.
The mistakes in calculating per-share earnings were “unintentional,” the company said. RH “misinterpreted” directions and added back a pre-tax loss related to some debt payments.
The restatement is unlikely to affect GAAP net income and is “limited” to calculation of basic and diluted EPS, RH said. It is also not expected to affect any other GAAP financial information, including revenue, gross profit and operating income, and the related non-GAAP numbers, the retailer said.
RH said it will file amendments to its quarterly reports for 2022 fiscal first, second, and third quarters to correct the mistakes.
The periods affected are first quarter 2022, second quarter 2022 as well as six months ended July 30, and third quarter 2022 as well as the nine months ended Oct. 29, the company said.
Financial statements as well as press releases and shareholder letters pertaining to these dates “should no longer be relied upon” due to the errors, RH said.
Shares of RH have lost 13% in the last 12 months, compared with losses of about 8% for the S&P 500 index.