Restoration Hardware announces stock sale, raises estimates
Furniture Today Staff -- Furniture Today, May 13, 2013
CORTE MADERA, Calif. — Restoration Hardware today announced an offering of 7.5 million shares of its stock by existing stockholders, with the sellers granting the underwriters an option to purchase another 1.125 million shares.
None of the proceeds will go to the company, and the Top 100 store said it isn't selling any company-held shares.
The timing and pricing of the proposed offering was not announced. BofA Merrill Lynch and Goldman Sachs & Co. will be joint managers, with Baird, William Blair, Piper Jaffray and Stifel acting as co-managers.
On Friday, Restoration said it expects to report fiscal first quarter revenues in the $295 million to $300 million range, up 35% to 38% from the same period last year. Same-store sales growth in the quarter, which ended in late April, is expected to be up 41%, on top of a 26% gain in the comparable 2012 quarter.
The numbers are substantially higher than the previous revenue forecast of $280 million to $285 million. Adjusted earnings, excluding certain charges amounting to $4 million, are expected to be in the $900,000 to $1.5 million range, compared with earlier guidance of a loss of $1 million to breakeven.
On a GAAP basis, Restoration said it expects to post a loss in the range of $1.1 million to $1.8 million, again excluding certain charges.
"Our first quarter net revenues were well ahead of our guidance range as we experienced stronger customer response to our product assortment and benefited from our better inventory position, which has enabled us to ship product earlier than anticipated and improve customer service levels," CEO Carlos Alberini said in a statement.
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