RH Q4 Adj. EPS $1.69 Beats $1.55 Est., Sales $669.7M Misses $672.6M... RH Sees Q1 Adj. EPS $0.95-$1.05, Sales $555M-$565M vs $591.4M Est. RH sees FY18 adjusted EPS $5.45-$6.20, consensus $5.53 They lowered guidance for the next quarter, but raised it substantially for full fiscal year.
Revenue misses have the potential to hit a company’s stock price hard for a long time. Large institutional investors usually take a long time to dispose or acquire a position of meaningful size to them. These institutions look at things like trade shows, new products, new contracts, regulatory changes, demographics, competitive position, management changes, AR as a % of revenue changes, revenue growth, etc. Earnings tends to be a short-term measure and is easily influenced by things not immediately relevant to the health of the business. Assuming there are no other positives for this company, it might be a worthwhile short on the open of regular trading hours. I see they are a retailer with only a few stores so far nationwide. They have room to expand alot, but their earnings are likely to be very sensitive to the economy.
I made a bad call on multiple levels. RH gapped up strongly, traded around the open briefly, probably would have triggered a threshold short, then shot up four points within a minute. Personally, I would have risked $.50 at most from the open, but likely would have have been forced to take a much bigger loss in RH’s short stampede. Lessons from this are, respect potential short squeeze possibilities as Vanzandt mentioned earlier and be sure to adjust one’s trade size and entry thresholds to reflect a polarized stock situation.
Thank you for admitting you were wrong..word on the street there is an opening for a trader in the journal section.
If you're talking to me Mr Soes (probably not because you have me on ignore).... I told everyone not to touch it short. I know how this stock works. I sure as hell didn't short it last night, nor today. But I did get a little out of LULU. Not much.