Selected stock price target news of the day - September 16th, 2024

By: Matthew Otto

RH Reports Q2 Earnings Amid Rising Demand, Lowers Full-Year Revenue Forecast

RH posted its second-quarter 2024 earnings, reporting earnings per share (EPS) of $1.69, surpassing the analyst estimate of $1.62 by $0.07. Revenues came in at $829.66 million, slightly above the consensus estimate of $827.61 million. Demand growth reached 7% in the second quarter, with a further acceleration in the third quarter as July and August demand increased by 10% and 12%, respectively.

Despite these results, RH lowered its full-year revenue growth forecast to 5% to 7%, down from the previous estimate of 8% to 10%. RH now expects to end the year with a backlog of $80 million to $100 million, which will impact adjusted operating and EBITDA margins by approximately 100 basis points. Additionally, international expansion costs are projected to create a 230 basis point drag for 2024. For the third quarter, RH forecasts demand growth between 12% and 14%, revenue growth of 7% to 9%, and an adjusted operating margin of 15% to 16%.

Analysts Raise Price Targets Following Q2 Earnings

Loop Capital analyst Anthony Chukumba maintained a Hold rating and raised the price target from $230 to $320.
Stifel analyst W. Andrew Carter maintained a Buy rating on RH while increasing the price target from $315 to $375.
Citigroup analyst Steven Zaccone kept a Buy rating but lifted the price target from $340 to $355.
Telsey Advisory Group analyst Joseph Feldman maintained a Market Perform rating and a $290 price target.
BofA Securities analyst Curtis Nagle retained a Buy rating as well as raised the price target from $310 to $359.
TD Cowen analyst Max Rakhlenko continued with a Buy rating and increased the price target from $325 to $350.
Wells Fargo analyst Zachary Fadem upheld an Overweight rating and raised the price target from $325 to $350.

Which Analyst has the best track record to show on RH?

Analyst Zachary Fadem (WELLS FARGO) currently has the highest performing score on RH with 20/28 (71.43%) price target fulfillment ratio. His price targets carry an average of $28.13 (8.74%) potential upside. RH stock price reaches these price targets on average within 87 days.

Signet Jewelers Beats Q2 EPS Estimates, Misses on Revenue, and Reaffirms Strong FY2025 Outlook

Signet Jewelers reported its second-quarter fiscal 2025 earnings, with an EPS of $1.25, $0.07 higher than the estimate of $1.18. However, revenue came in below forecasts at $1.5 billion, compared to the consensus estimate of $1.51 billion.

Despite the revenue miss, Signet highlighted growth in same-store sales and an increase in average transaction value (ATV), particularly in lab-created diamond fashion jewelry, which grew by more than 25%. New merchandise sales also saw a 50% increase, accounting for 25% of total sales in core banners such as Jared, Zales, and Kay.

For the third quarter of fiscal 2025, Signet projects revenue between $1.34 billion and $1.38 billion, in line with the consensus estimate of $1.35 billion. Additionally, reaffirmed its fiscal year 2025 guidance, expecting EPS between $9.90 and $11.52, compared to the analyst consensus of $10.28.

Full-year revenue is forecasted to range from $6.66 billion to $7.02 billion, versus the consensus estimate of $6.77 billion. Signet also reported a gross margin of $566 million, or 38% of sales, and continued to reduce inventory by more than 5%, closing the quarter with a balance just below $2 billion.

Analysts Revise Price Targets After Q2 Performance

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and the price target at $87.
UBS analyst Mauricio Serna continued to rate a Buy, and has raised the price target from $132 to $136.
BofA Securities analyst Lorraine Hutchinson held a Neutral rating, but lowered the price target from $108 to $100.

Which Analyst has the best track record to show on SIG?

Analyst Dana Telsey (TELSEY ADVISORY) currently has the highest performing score on SIG with 16/24 (66.67%) price target fulfillment ratio. His price targets carry an average of $-4.03 (-4.43%) potential downside. Signet Jewelers stock price reaches these price targets on average within 129 days.

Lovesac Reports Q2 Fiscal 2025 Losses Despite Revenue Growth and Expanding Showroom Network

The Lovesac Company reported its financial results for the second quarter of fiscal 2025. Net sales for the quarter increased by $2.1 million, or 1.3%, to $156.6 million, driven by the addition of 31 new showrooms despite a 5.4% decline in omni-channel comparable net sales.

Gross profit remained at $92.4 million, but gross margin decreased by 80 basis points to 59.0%, attributed to higher promotional discounting and increased outbound transportation costs. Total operating expenses rose by 7.9% to $100.7 million, with increases in SG&A expenses, which climbed by 15.4% to $73.7 million.

The operating loss widened to $8.4 million, compared to $1.0 million in the prior year, and net loss reached $5.9 million, or $(0.38) per share, reflecting an increase from the previous year’s net loss of $0.6 million, or $(0.04) per share.

For the first half of fiscal 2025, net sales decreased by $6.5 million, or 2.2%, to $289.2 million, primarily due to a 10.0% drop in omni-channel comparable net sales. Gross profit increased slightly by 0.9% to $164.4 million, with a 170 basis point improvement in gross margin to 56.8%. Operating expenses surged by 18.0% to $190.6 million, mainly due to higher payroll and professional fees.

The operating loss for the first half of the year was $26.2 million, worsening from $6.7 million in the previous period. Net loss for the first half amounted to $18.8 million, or $(1.21) per diluted share, compared to $4.8 million, or $(0.31) per diluted share, in the prior year.

Lovesac ended the period with a cash balance of $72.1 million and no outstanding balance on its line of credit. For fiscal 2025, Lovesac expects net sales between $700 million and $735 million and adjusted EBITDA ranging from $52 million to $59 million.

Analysts Remain Bullish with Target Price Increases

Canaccord Genuity analyst Maria Ripps maintained a Buy rating and the price target at $36.
Craig-Hallum analyst Alex Fuhrman reiterated a Buy rating and increased the price target from $30 to $35.
Roth MKM analyst Matt Koranda reiterated a Buy rating and raised the price target from $30 to $31.

Which Analyst has the best track record to show on LOVE?

Analyst Alex Fuhrman (CRAIG HALLUM) currently has the highest performing score on LOVE with 8/12 (66.67%) price target fulfillment ratio. His price targets carry an average of $8.75 (33.33%) potential upside. The Lovesac Company stock price reaches these price targets on average within 153 days.