Restoration revenues on rise
Larry Thomas -- Furniture Today, December 17, 2012
CORTE MADERA, Calif. - Restoration Hardware, which went public in November, said its revenues for the third fiscal quarter jumped 22.2% as its stores, catalogs and e-commerce business all registered healthy gains.
The company also reversed a net loss from the same quarter last year when it was a privately held entity.
Total revenues for the quarter ended Oct. 27 were $284.2 million, up from $232.5 million in last year's third fiscal quarter. The total included a comparable-store sales gain of 29% for its bricks-and-mortar stores.
The company said catalog and e-commerce sales were up 24% in the quarter and represented 44% of total revenues.
Net income for the quarter was $1.69 million or 5 cents per share. That reversed a loss of $4.83 million in the same quarter a year ago.
CEO Carlos Alberini said the results marked the 11th consecutive quarter of double-digit revenue growth.
"We are in the very early stages of transforming our legacy mall real estate into our full line Design Gallery concept," Alberini said. "Our Los Angeles and Houston full line Design Galleries continue to perform ahead of our expectations."
Another Design Gallery is in Scottsdale, Ariz., and he said more are planned in the Boston, Indianapolis, Atlanta and Greenwich, Conn., areas, while the company continues to pursue other locations in key markets.
Restoration Hardware ended the quarter with 73 stores, 14 fewer than it had at the end of last year's third fiscal quarter.
For the nine months ended Oct. 27, revenues rose 21.8% to $795 million. Comparable store sales were up 29%.
Nine-month net income totaled $15.6 million or 48 cents per share. That reversed a net loss of $3.47 million in the first nine months of the previous fiscal year.
The most recent net income figure includes $4.78 million in legal expenses and other professional fees related to an investigation involving former chairman and co-CEO Gary Friedman. Friedman resigned last fall after it was disclosed he had a personal relationship with an employee that violated company policies.
|Earnings per share are fully diluted, and all figures in parentheses are losses or declines.|
Quarter ended 10/27
Net income (a)
Earnings per share (b)
9 months ended 10/27
Net income (c)
Earnings per share (b)
|(a) Includes $2.8 million in legal fees and expenses in 2012 for an investigation of former
chairman Gary Friedman. (b) Pro forma earnings in 2012, assuming the company was publicly
traded for entire quarter. (c) Includes $4.78 million in legal fees and expenses in 2012
from the Friedman investigation.|