Restoration Hardware reports widened loss
David Perry -- Furniture Today, June 4, 2008
Corte Madera, Calif. – Specialty retailer Restoration Hardware reported a first-quarter net loss of $19.6 million on a 1.8% sales uptick to $144.8 million.
Last year’s first quarter net loss was $13.0 million, RH showed in its 10-K report filed with the SEC yesterday.
The filing showed that store revenue was down 30% to $58.7 million from $83.5 million in the same period one year ago, and the store division dipped from an operating profit of $5.3 million to a loss of $3.6 million in this year’s first quarter. The number of stores was essentially the same year-to-year; RH now operates 101 locations.
In the direct-to-consumer segment, revenue of $86.0 million was up 47% from year-ago volume of $58.6 million, the company said – with operating income jumping 23.5% to $20.2 million. About half of the gain, RH said, was realized by consolidating small package shipments into a single distribution center.
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