Restoration Hardware raises Q1 guidance
Home & Textiles Today Staff -- Home Textiles Today, May 10, 2013
Corte Madera, Calif. - Encouraged by is strong performance lately, Restoration Hardware Holdings Inc. has raised its first quarter guidance.
The high-end home furnishings chain said it now expects net revenues in the range of $295 million to $300 million, representing 35% to 38% growth from the prior year, compared to previous guidance of $280 million to $285 million.
"We are very pleased with our business momentum and the revenue and earnings growth we are experiencing this year on top of our record performance in 2012," said Carlos Alberini, ceo. "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."
Other first quarter updates include:
--Comparable store sales to be 41%.
--Adjusted net income (excluding the impact of variable non cash stock-based compensation charges of $3.3 million and $700,000 of costs related to the company's registration rights agreement with Home Holdings LLC) to be in the range of $0.9 million to $1.5 million. This compared to the previous guidance of a loss of $1 million to breakeven computed on the same basis.
--Adjusted diluted EPS on the same basis to be in the range of $0.02 to $0.04 as compared to prior guidance in the range of ($0.02) to breakeven.
--On a GAAP basis, net income to be in the range of a loss of $1.8 million to a loss of $1.1 million and diluted EPS to be in the range of ($0.05) to ($0.03).
Restoration Hardware said this guidance increase is expected to be incremental to fiscal 2013 performance.
Gary Friedman, chairman emeritus, creator and curator: said: "We remain focused on the execution of our growth initiatives, including the transformation of our real estate and the expansion of our offering, and believe we are well positioned to continue to gain market share and further disrupt the highly fragmented home furnishings marketplace."
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