Restoration Hardware posts 3Q profit
CORTE MADERA, Calif. (AP) — Home goods retailer Restoration Hardware Inc. said Wednesday that it turned a profit in its fiscal third quarter, the last period before it completed its initial public offering.
The company sells items that include furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby and children's products. Sales rose 22 percent over the three months ended Oct. 27, and sales at locations open for at least a year experienced stronger growth. The company went public on Nov. 2.
Over the last few years Restoration Hardware has redesigned its stores and changed its product line to focus on higher-end goods. The company said Wednesday that it is converting its mall locations into a new, design gallery format, and said its first two design gallery stores are doing better than expected. At the end of the quarter, Restoration Hardware had 73 retail stores and 12 outlet stores in the U.S. and Canada.
Net income in the third quarter totaled $1.7 million, or 5 cents per share. Excluding one-time items, Restoration Hardware made 7 cents per share. A year ago the company lost $4.8 million over the same period. Revenue rose to $284.2 million from $232.5 million.
Analysts expected Restoration Hardware to report net income of 4 cents per share and $282.4 million in revenue, according to FactSet.
Sales at stores open at least a year rose 29 percent. Those comparable store sales are considered an important measurement of retailer health because they exclude results from stores that have opened or closed in the last year.
Restoration Hardware's IPO priced at $24, at the high end of the company's expectation. Shares have risen about 53 percent since then. On Wednesday the shares picked up 63 cents to close at $36.