Restoration Hardware posts strong 3Q
HTT Staff -- Home & Textiles Today, 12/13/2013 12:21:34 PM
Corte Madera, Calif. - Restoration Hardware's sales and earnings grew smartly during the third quarter, including significant gains in ecommerce revenue.
For the quarter ended Nov. 2, net income ballooned to $9.55 million, or 23 cents per share, from net income of $1.69 million in the year-ago quarter.
Sales climbed 39.3% to $395.8 million, driven by a 47% increase in direct revenue and 29% jump in comp on top of 29% same-store sales gain in last year's 3Q.
"We believe that the significant growth in our direct and total business demonstrates that the most recent evolution of our Source Book strategy was a highly profitable decision and will accelerate our ability to reach double-digit operating margins and cash flow positive versus our previously communicated expectations," said chairman and ceo during the company's third quarter conference call yesterday afternoon.
Co-ceo Carlos Alberini said the company's direct-to-consumer business now accounts for 96-97% of sales.
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