RH's "Act of Destruction"

Plus, MillerKnoll's sluggish demand.

Today is Thursday, March 28, 2024.

The Early Bird Index today is 73.23.

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RH's "Act of Destruction"

Despite posting awful financial results on Wednesday, RH (NYSE: RH) jumped 8.52% in after-hours trading after the luxury home furnishings company gave an upbeat outlook.

Financials: RH reported earnings of 57 cents per share in the past quarter and revenue of $738 million; both were lower than expected.

Details: The company blamed January weather and shipping delays for its poor results.

Powering the Story: Citing Pablo Picasso’s famous quote “Every act of creation is first an act of destruction,” RH painted an upbeat picture of the company in its letter to investors. The company said it has spent the past 18 months “destroying the former version” of RH and will unleash a more inspiring and disruptive RH brand.

Outlook: Despite a challenging housing market, RH expects demand growth of 12% to 14% and revenue growth of 8% to 10%. There are also plans for RH to transform its products.

Stock Price: RH is up 3.9% in 2024, including a 12% jump in the last 30 days.

Final Thoughts: RH is giving investors a reason to believe in the company’s future. Will this optimistic vision come true?

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Notables

Notable Earnings Today: Walgreens Boots Alliance (Nasdaq: WBA), Torrid (NYSE: CURV), Vuzix (Nasdaq: VUZI), Oxford Industries (NYSE: OXM), BRP (Nasdaq: DOOO), Semtech (Nasdaq: SMTC), Sharecare (Nasdaq: SHCR), Affimed (Nasdaq: AFMD), Azul (NYSE: AZUL), Dare Bioscience (Nasdaq: DARE), D-Wave Quantum (NYSE: QBTS), Emeren Group (NYSE: SOL), Energous (Nasdaq: WATT), Gold Royalty (NYSE American: GROY), Planet Labs (NYSE: PL), REX American Resources (NYSE: REX), Surf Air Mobility (NYSE: SRFM), Zevra Therapeutics (Nasdaq: ZVRA).

Notable IPOs Today: Boundless Bio, Inc. Common Stock (Nasdaq: BOLD), U-BX Technology Ltd. Ordinary Shares (Nasdaq: UBXG), BlackRock U.S. Industry Rotation ETF (Nasdaq: INRO).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), GDP (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET), Pending Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

MillerKnoll's Sluggish Demand

Furniture company MillerKnoll (Nasdaq: MLKN) plummeted by 14.84% in after-hours trading on Wednesday after posting mixed financial results.

Financials: MillerKnoll reported earnings of 45 cents per share in the past quarter, which was better than expected. But revenue only reached $738 million, which was lower than expected.

Quote: “Overall demand patterns across much of our business have continued to be sluggish, driven by elevated interest rates in major markets around the world, ongoing geopolitical concerns, and a lagging housing market in the U.S.” - MillerKnoll.

Outlook: The company expects sales in the current quarter to be between $880 million and $920 million, which is lower than expected.

Final Thoughts: MillerKnoll’s stock was up 15% in 2024 before these results. Clearly, the company is facing a lot of challenges right now.

Dogecoin Jumps Due to Whales

The price of Dogecoin ticked up 3% on Wednesday thanks to cryptocurrency whales (wealthy parties) buying a lot of Dogecoin.

Final Thoughts: While Dogecoin has more than doubled in price this year, it is still considered by many to be just a meme coin.

Downgrade: Paramount Global Debt Cut to Junk Status by S&P Global (The Hollywood Reporter)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.