Restoration Hardware reports Q2 net loss on charges; same-store sales surge 26%
Corte Madera, Calif. -- Restoration Hardware Holdings reported a net loss of $17.8 million for the second quarter, compared with net income of $17.6 million in the same quarter a year earlier, due to charges linked to stock awards given to chairman and co-CEO Gary Friedman.
Net revenues for the second quarter of fiscal 2013 increased 30% to $382.1 million from $292.9 million last year.
“We continued to take market share during the quarter, delivering 30% growth in net revenues driven by a same-store sales increase of 26% on top of 31% comp growth last year and 17% percent in 2011,” Friedman said. “We continued to invest in our infrastructure and new businesses to support our future growth.”
Restoration Hardware plans to open new full-line stores in Greenwich, Conn., Atlanta and Los Angeles in 2014 and is currently in negotiations for more than 30 locations in other markets.
“We continue to believe we can open more than 10 locations a year, beginning in 2015, said Carlos Alberini, co-CEO. “Our next generation Full Line Design Galleries will be larger and showcase our dominant assortment and new businesses, and they will provide opportunities for higher sales, increased earnings, lower capital investment and higher ROIC in each market.”
The company expects net revenues in the range of $385 million to $395 million for the third quarter of this fiscal year, in the range of $490 million to $500 million for the fourth quarter, and in the range of $1.56 billion to $1.58 billion for the full fiscal year.