Why Restoration Hardware Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Restoration Hardware were looking as good as new today, climbing as much as 30% after it bumped up its first-quarter forecast today.

So what: The high-end furniture retailer raised both its revenue and earnings guidance due to an increase in customer traffic and low inventory levels. It now expects earnings per share of $0.02 to $0.04 in the first quarter, up from a loss of $0.01, and sees revenue coming in at $295-$300 million, up from a previous range of $280-$285 million. Most importantly, however, is that same-store sales are projected to jump by a whopping 41%.

Now what: Comparable sales growth in that range is basically unheard of in retail, and speaks volumes about Restoration's brand strength and increasing popularity. The quarter ending In April is the slowest one for the home-furnishings seller, so investors can expect those gains to have a serious impact on the bottom line. With the housing market on the rise, and the overall economy improving, not to mention the scorching sales growth, this high-end retailer seems like a great macroeconomic play. Look for shares to go higher from here.

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The article Why Restoration Hardware Shares Jumped originally appeared on Fool.com.

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