Restoration Hardware earns non-4Q profit
Home & Textiles Today Staff -- Home Textiles Today, August 29, 2006
Corte Madera, Calif. – "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. Each period’s results were impacted by tax matters; in the most recent period there was also a non-cash charge concerning stock options.
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 revenue grew more than twice as fast as brick-and-mortar business: the company said "direct-to-customer revenue increased 58% to $67.9 million."
Building on this momentum, Friedman pointed to the company’s aggressive non-store schedule: In March 2006 it launched what he called its "first brand extension," the Restoration Hardware Outdoor catalog; this coming holiday will see the second Restoration Hardware Gift catalog, with a partial goal of positioning the company as an upscale destination; and finally the current launch of brocadehome.com and the Brocade Home catalog, a more feminine offering that features an assortment aimed at the "broader value market."
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