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RH to restate quarterly results after errors in earnings-per-share calculations

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RH, the retailer formerly known as Restoration Hardware
RH,
-0.99%
,
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
SPX,
-1.04%
.

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Jacob Keiter is a husband, a writer, a journalist, a musician, and a business owner. His journey to becoming a writer was one that was paved with challenges, but ultimately led him to find his true calling. Jacob's early years were marked by a strong desire for creative expression. He was always drawn to music, and in his youth, he played in several bands, chasing the elusive promise of fame and success. However, despite his best efforts, Jacob struggled to find the recognition he craved. It wasn't until he hit a low point in his life that Jacob discovered his love for writing. He turned to writing as a form of therapy during a particularly difficult time, and found that it not only helped him to cope with his struggles, but also allowed him to express himself in a way that he had never been able to before. Jacob's writing skills quickly caught the attention of others, and he soon found himself working as a journalist for The Sun out of Hummelstown. From there, he went on to contribute to a variety of publications, including the American Bee Journal and Referee Magazine. Jacob's writing style is reflective of traditional journalism, but he also infuses his work with a unique voice that sets him apart from others in his field. Despite his success as a writer, Jacob also owns another business, JJ Auto & Home, which specializes in cleaning. Jacob's commitment to excellence is evident in all of his endeavors, whether it be in his writing or in his business ventures. Today, Jacob is the author of two books and continues to inspire others through his writing. His journey to becoming a writer serves as a reminder that sometimes our darkest moments can lead us to our greatest achievements.

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