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RH boosted its full-year sales outlook noting pent-up demand in the housing and renovation markets as it said the economic reopening could unleash a “Roaring Twenties type of consumer exuberance”.

RH, previously known as Restoration Hardware, reported record revenues of $860.8m for the fiscal first quarter, the company said Wednesday. Revenues were up 78 per cent compared to the same period last year and topped expectations of nearly $758m, according to a Refinitiv survey of Wall Street analysts.

The company swung to a profit, reporting net income of $130.7m or earnings of $4.19 a share, compared with a loss of $3.2m or 17 cents a share in the year ago quarter. Adjusted earnings per share jumped to $4.89 per share, eclipsing analyst estimates of $4.10 a share. 

The luxury home furnishings retailer said it expects to be net debt-free by the end of this fiscal year and raised its revenue growth outlook to a range of 25 per cent to 30 per cent, up from its previous outlook of 15 per cent to 20 per cent. That puts the company’s estimates at $3.5bn for the year. 

“The unmasking of the general public could lead to a Roaring Twenties type of consumer exuberance,” RH chief executive Gary Friedman said in a letter to shareholders. 

In addition to strong housing and renovation market predictions, Friedman points to a record stock market, low interest rates and the reopening of many large parts of the economy. 

RH, which currently has a market capitalisation of $13bn, is looking to become a brand worth $20bn to $25bn, Friedman said, emphasising the role the company’s international expansion plans will play. 

“You should also rest assured that we have pressure tested our business assumptions and risks, and are confident in our ability to maintain an adjusted operating margin in excess of 20 per cent in just about any economic downside scenario we can envision,” Friedman said. 

Shares were up 6 per cent in after-hours trading.