The Associated Press September 9, 2011, 6:35PM ET

Restoration Hardware files to go public

Restoration Hardware Holdings Inc. filed Friday to go public, saying it expects to raise as much as $150 million on the stock market.

The high-end home decor store has been a public company before. But managers led a private-equity buyout in June 2008 as the company struggled with losses.

Restoration Hardware says it now hopes to transform itself from a niche brand into a leading home furnishings company, with plans to lure wealthy customers from designer showrooms and smaller, independent competitors. The timing could work in the company's favor: By some indications, luxury shoppers are recovering from the post-recession malaise much more quickly than others.

The company has about 100 stores throughout the U.S. and Canada. It plans to open more and expand the existing locations, which it says would drive sales. It also plans to beef up its already-voluminous catalogue and online marketing.

Restoration Hardware lost money overall in fiscal 2009 and 2010, but results are improving by some measures. In the second quarter of this year, revenue climbed 19 percent to $236 million and net income climbed 53 percent to $7.5 million.

The company said it would use the money raised from investors to pay down debt and for "general corporate purposes." It didn't say when it expects to go public, nor did it predict what the shares' initial price might be.


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