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 pretax 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 provided in December. The company at that point called for a revenue decline of between 3.5% and 4.5% vs. 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 pretax loss related to some debt payments.
The restatement is unlikely to affect GAAP net income and is “limited” to calculation of basic and diluted earnings per share, 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 fiscal year 2022’s first, second and third quarters to correct the mistakes.
Financial statements as well as press releases and shareholder letters pertaining to the dates in question — the first and second quarters of 2022, as well as the six months that ended July 30, and the third quarter of fiscal 2022, as well as the nine months ended Oct. 29, according to the company — “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 a decline of about 8% for the benchmark S&P 500 index