Restoration Hardware Holdings, Inc. (NYSE:RH) Q2 2019 Earnings Conference Call - Final Transcript
Sep 10, 2019 • 05:00 pm ET
real cash benefit, which -- so, this year, our outlook for the tax rate is 21%. And in terms of EPS, if you think about that just in terms of our guidance, that math is $0.67, and that's the material amount of earnings power that was being understated by our choice of 26%.
So, we're just -- we just want to make sure that investors and you have the most accurate view of what the earnings power of the business is. And so, we're going with the 21%, normalized tax rate for all four quarters. And that, again, I think that just takes a little of the confusion out with the variability that we were seeing last year.
Yeah. I mean, if you just take a simple multiple, I mean, what's our multiple now about 15-or-so, if you take our multiple and take 15 times $0.67, it's $10 a share. Why would we present the numbers to be worse for our shareholders? We're -- all we're trying to do is to create comparability that makes sense to evaluate the health and growth of the business. We don't want to understate it. We don't want to overstate it. But the tax rule has changed. You've got some of these activities happening. And so, we're just trying to create the best comparison for ourselves, for our investors and for our shareholders, that's all.
There are no further questions. So, I'd like to turn the call back over to Gary for any closing remarks.
Great. Well, thank you, everyone. I want to thank our people and our partners all around the world who have just worked so hard and passionately bringing our vision to life and generating these really extraordinary results, like I couldn't be more proud, and we just ended the quarter with operating margins of 14.9%. I don't know who the next closest competitor in our space is, maybe the L2 people want to do a ranking on that. But we've got really one of the best models in our industry and we're just warming up. I think we've got the best people in the world, best team in the world, not just inside this Company, but outside this Company. Our partners around the world are incredible that we work with. We're proud to work through problems with them, whether it's in Europe, or whether today it's in China. We're about partnerships and we're about passion and vision. And I can tell you, we've never had a greater or a greater view of the future and a more inspiring vision in the future and we're going to passionately pursue that vision. And I think we're going to build one of the most innovative and inspired and inspiring brands the world has ever seen.
So, thank you for being a part of the journey and wanting to be interested in our story, we like talking about it. So, we'll talk to you next quarter. Thank you.
[Operator Closing Remarks]