RH (NYSE: RH) shares gained 7% on Friday morning after Warren Buffet’s Berkshire Hathaway revealed it owned 1.2 million shares at the end of the third quarter, according to filings with the Securities and Exchange Commission.
Berkshire’s stake in RH represent USD 206.3 Million as of September 30, making it the fourth largest shareholder, according to FactSet.
California-based RH is a furniture retailer that has transformed itself into a high-end luxury brand. The Company changed its name two years ago as part of a rebranding structure into a “lifestyle” company.
In the previous quarter, RH topped expectations and also raised its guidance. The Company earned USD 3.20 per share on revenue of USD 707 Million. FactSet analysts estimated earnings of USD 2.69 per share on revenue of USD 697 Million.
For fiscal 2019, RH is expecting revenue to fall between USD 2.68 Billion to USD 2.69 Billion, up from its previous forecast between USD 2.65 Billion and USD 2.67 Billion. The Company is also expecting earnings between USD 10.53 per share to USD 10.76 per share versus its previous expectations of USD 9.08 per share to USD 9.52 per share.
Additionally, in the filings, Berkshire also decreased its stake in Wells Fargo (NYSE: WFC) by 7.7% to about 378 million shares. Berkshire also slashed its Phillips 66 stake by 6.7% to 5.2 million shares, valued at approximately USD 530 Million.
Berkshire maintained its positions in Bank of America (NYSE: BAC), Delta Air Lines (NYSE: DAL), Bank of New York Mellon (NYSE: BK), and Coca-Cola (NYSE: KO).
The Company also revealed a new stake in Occidental Petroleum, valued at around USD 332 Million. Occidental shares rose by 4% shortly after the opening bell on Friday morning.