Today is Friday, September 9, 2022.
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RH's "Continued Softening"
Shares of RH (NYSE: RH) ticked up 0.11% in after-hours trading on Thursday after the home-furnishings company reported positive financial earnings results.
Financials: RH reported earnings of $8.08 per share and revenue of $991.6 million; both were better than expected.
Growth: Revenue is slightly up year-over-year and the gross margin expanded 350 basis points as product margins grew.
Quote: “Our expectation is for continued softening in our business trends during the remainder of fiscal 2022 as a result of ongoing weakness in the housing market over the next several quarters and possibly longer due to the Federal Reserve’s anticipated interest rate increases and the cycling of record COVID-driven sales levels in 2021.” - RH’s Fiscal 2022 Outlook.
Stock Price: RH’s stock is down 51% this year, including a 7.5% drop in the last 30 days.
Final Thoughts: RH previously warned investors that it is seeing softening demand trends. While the company sees challenges on the horizon, it is bullish long-term. The company refuses to discount its prices in order to preserve its brand.
Notable Earnings Today: Kroger (NYSE: KR), ABM Industries (NYSE: ABM), Ideanomics (Nasdaq: DIEX), Waterdrop (NYSE: WDH).
Notable IPOs Today: Yoshiharu Global Co. (Nasdaq: YOSH).
Notable Equity Crowdfunding Campaigns Ending Today: BEM | books & more (Mainvest), Forest & Flour (Mainvest), R3 Printing (StartEngine), Unmanned Systems Operations Group (StartEngine), Aperio Beauty (StartEngine), Lucky Buns (Mainvest), Pisko Peruvian Gourmet (Honeycomb).
Notable Economic Events Today: N/A.
Zscaler Survives Macroeconomic Landscape
Shares of Zscaler (Nasdaq: ZS) jumped 12.16% in after-hours trading on Thursday after the cloud security company posted positive financial earnings results.
Financials: Zscaler reported earnings of 25 cents per share and revenue of $318.1 million; both were better than expected.
The Good: Revenue is up 61% year-over-year, calculated billings are up 57%, and deferred revenue is up 62%.
The Bad: The company’s GAAP net loss was $97.7 million, compared to $81 million in the same period last year.
Quote: “Despite the uncertain macroeconomic landscape which continues to evolve, we continue to see favorable demand for our Zero Trust Exchange platform because it makes businesses more secure, simplifies IT, and reduces cost.” - Jay Chaudhry, Chairman and CEO of Zscaler.
Final Thoughts: The stock might be down 48% this year, but it is currently benefiting from increased awareness of cloud security in the enterprise.
Equity Crowdfunding Spotlight: Bold Move Beverages
Briefly describe your business. Bold Move Beverages is an Austin-based alcohol brand that combines two of the world’s most beloved drinks, coffee & whiskey, to create Cold Brooze, an energizing cocktail for coffee lovers to enjoy at brunch, the golf course, and happy hours.
What are the terms of the investment for your campaign? Raising $500K this round to fund our first year of operations. On WeFunder, we are offering an Early bird discount, with the first $150K of our crowdfund offered on a SAFE w/ a $5M cap & 15% discount, followed by $350K on a SAFE w/ a $6M cap.
What makes your startup special? We will succeed because we are strategically launching an in-demand product at the convergence of several major trends. Ready-to-drink options are exceedingly becoming popular in the Alc and non-Alc spaces. RTD coffee has grown to be a $3B industry.
Trends to Watch
More EV Competition: Jeep announces plans to bring four new EV models to market by 2025 (Engadget)
Current Rate of Affairs: Mortgage rates reach highest level since 2008 (CNN)
Back From the Dead: Crypto Terra Luna Classic Surges as Traders Speculate on New Supply Burn Rule (CoinDesk)
Energy of the State: Here’s how much energy crypto mining gobbles up in the US (The Verge)
Workaround: Audit Deal or Not, Many Chinese Companies May Avoid Delisting (The Wall Street Journal)
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