All the Details On 5 Companies’ Latest Quarterly Results, Including Restoration Hardware (RH)

Although the second quarter earnings season has largely passed, several companies with abnormal fiscal years issued their latest earnings results after the market close yesterday. Although the companies are relatively small in the grand scheme of things, their results can also be considered as a reflection of the broader economic well-being of the U.S. economy.

In this article, we put the earnings results of five companies, Restoration Hardware Holdings Inc (NYSE:RH), Finisar Corporation (NASDAQ:FNSR), Duluth Holdings Inc (NASDAQ:DLTH), Korn/Ferry International (NYSE:KFY), and Zumiez Inc. (NASDAQ:ZUMZ) under the microscope, and see how the world’s most successful investors had the five positioned in their portfolios at the end of the second quarter.

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Restoration Hardware Holdings Inc (NYSE:RH) shares are 10% in the green this morning after the retailer reported stronger-than-expected earnings for its fiscal second quarter. For the period, Restoration Hardware earned $0.44 per share on revenue of $543.4 million, beating the average estimates by $0.15 per share and $32 million respectively. Although a big part of the beats was due to the company being able to ship products earlier than anticipated (and thus the resulting pull forward of revenue and earnings into the second quarter from the third quarter), traders nevertheless took heart at its management’s reaffirmation of fiscal 2016 net revenue growth and adjusted diluted EPS of 1%-to-3% and $0.90-to-$1.00, respectively. 24 funds in our system owned shares of Restoration Hardware Holdings Inc (NYSE:RH) at the end of the second quarter, down by 14 funds from the end of the previous quarter.

Finisar Corporation (NASDAQ:FNSR) shares have surged by 16.87% on the back of a strong first quarter of fiscal year 2017 earnings report. For the three months, the company’s EPS of $0.38 beat estimates by $0.08, while Finisar’s revenue of $341.25 million was $8.5 million ahead of estimates. Sales rose by 8.7% year-over-year due to strong demand for 100Gb/s transceivers, among other factors. Finisar’s management sees fiscal second quarter EPS of between $0.44 and $0.50 on revenue of between $355 million and $375 million. Ken Fisher‘s Fisher Asset Management reported owning a stake of over 4.1 million shares in Finisar Corporation (NASDAQ:FNSR) as of the end of June.

On the next page, we’ll take a closer look at the earnings issued by Duluth Holdings, Korn/Ferry International, and Zumiez Inc yesterday.

Duluth Holdings Inc (NASDAQ:DLTH) is in the spotlight after reporting its fiscal second quarter earnings results yesterday. For the period, Duluth Holdings reported net income of $0.11 per share on sales of $65.8 million, versus estimates of just $0.07 per share and $62.65 million, respectively. Sales rose by 27.4% year-over-year, while adjusted EBITDA rose by 13.9% year-over-year to $7.5 million. During the quarter, Duluth opened two new retail stores, giving it a total of nine retail stores and two outlet stores (hence the big revenue jump). For fiscal 2016, Duluth Holdings reaffirmed its previous outlook of GAAP EPS of $0.66-to-$0.70 on net sales of $370 million-to-$380 million. Duluth’s management also affirmed its long-term financial targets of 20% sales growth, and 25% EBITDA and net income growth. Six funds in our database were long Duluth Holdings Inc (NASDAQ:DLTH) at the end of June, up by two funds quarter-over-quarter.

Korn/Ferry International (NYSE:KFY) reported mixed results for its fiscal 2017 first quarter. Although its earnings of $0.52 per share missed the consensus by $0.01, the company’s revenue of $392.9 million beat analysts’ consensus estimate by $5.32 million. Sales rose by 40.7% year-over-year, led by strong revenue growth in Futurestep, and its Hay Group acquisition. Korn/Ferry’s management believes that the Hay Group integration has been largely completed, as 75% of the legacy unit’s revenue has been converted to Korn/Ferry’s systems and processes. For the fiscal second quarter, management estimates consolidated adjusted EPS to be between $0.54 and $0.62 and fee revenue to be in the range of $380 million-to-$400 million. The number of successful funds in our system with holdings in Korn/Ferry International (NYSE:KFY) fell by two quarter-over-quarter to 13 at the end of June.

Traders have bid up Zumiez Inc. (NASDAQ:ZUMZ) in extended market trading after the company reported a slightly narrower-than-expected loss. For its fiscal second quarter, Zumiez lost $0.03 per share, versus estimates of a loss of $0.08 per share. Revenue for the period was $178.3 million, down by 0.8% year-over-year, but still $0.85 million better than the consensus mark. Comparable-store sales for the thirteen weeks ended July 30 inched lower by 4.9% and Zumiez’s management continues to massage its expense structure into better alignment with current trends. Zumiez also acquired 100% of Fast Times Skateboarding for $5.5 million in cash and $1.4 million in shares of common stock on August 31. For its fiscal third quarter, Zumiez expects net income per diluted share of $0.21-to-$0.26 on sales of $209 million-to-$213 million. Five funds that we follow owned shares of Zumiez Inc. (NASDAQ:ZUMZ) at the end of the second quarter.

Disclosure: None