RH the retail chain formerly known as Restoration Hardware, declined from near-record prices in late trading Tuesday despite beating expectations with a quarterly earnings report. RH reported net income of $13.2 million, or 62 cents a share, on net revenue of $592.5 million, up from $549.3 million a year ago. After adjustments for debt extinguishment and other costs, the company claimed profit of $1.04 a share, up from 20 cents a share a year ago. Analysts on average expected adjusted earnings of $1.02 a share on sales of $592 million, according to FactSet. RH’s forecasts for the fourth quarter and fiscal 2018 were in line with . RH has been moving toward a membership model, similar to chains like Costco Wholesale Corp. and Chief Executive Gary Friedman cheered developments in that effort in a letter to shareholders Tuesday. "With 95% of our core RH business now generated from members, we can confidently declare our move from a promotional to a membership model a success." RH shares bounced around in after-hours action following the announcement falling 2% to 5% from a closing price of $103.87, the second highest closing price in the company’s history.