Restoration Hardware puts the push on direct biz
April 5, 2007,
Corte Madera,Calif.– Restoration Hardware plans to focus outside of the box – literally. The retailer told analysts late yesterday that it will put store expansion on hold for at least two years while it drives direct-to-consumer sales and expands its brand portfolio.
The direct approach allows the company to broaden sku offers beyond merchandise carried by its 103 stores. “Our business is primarily about selling more [goods] to our best customers, not necessarily exponentially growing the customer base, though we’d like to grow that, too,” he said.
This month brings the debut of another new Restoration-branded catalog: bed and bath. Last year, Restoration launched an outdoor catalog and Brocade, a book of interior home furnishings (including textiles). Next year, the company said, it will launch a kids home furnishings book.
Fourth-quarter sales, reported yesterday, rose 27% to $243 million. Direct-to-consumer jumped 59%, with store comps climbed 9.1%
Operating income rose to $15.7 million, up 9%. EBITDA (earnings before interest, taxes, depreciation and amortization) were $21.4 million, up 8.6%. Net income per fully diluted share was 34 cents, compared to a net loss of 53 cents in the previous year’s fourth quarter.
Related Content By Author
Live From New York: Fashion Comes Across the Pond
Home & Textiles Today eDaily
Most Viewed Articles
See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more...