Restoration Hardware Earns First Non-4Q Profit
Staff Staff -- Furniture Today, September 4, 2006
“We are proud to announce that for the first time in the company's history, we were profitable outside of the fourth quarter,” said Restoration Hardware president, ceo and chairman Gary Friedman.
The 138-store specialty retailer reported second quarter net income of $200,000 compared to a net loss of $2.5 million for the same period last year.
Sales for the quarter were $179.3 million, up 24% from $144.8 million in the period a year ago. The comp store gain was 4.3%. Non-store sales grew more than twice as fast as brick-and-mortar sales; the company said “direct-to-customer revenue increased 58% to $67.9 million.”
Building on this momentum, Friedman pointed to the retailer's aggressive non-store schedule: in March it debuted its “first brand extension,” the Restoration Hardware Outdoor catalog; this holiday season will see the second Restoration Hardware Gift catalog, tuned to position the brand as an upscale destination; and the current launch of brocadehome.com and the Brocade Home catalog, a more feminine offering with an assortment aimed at the “broader value market.”
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