Restoration Hardware Posts 1st Quarter Loss

May 25, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 2006 Restoration Hardware reported a first quarter net loss of $4.9 million for the quarter ended April 29, compared to a net loss of $3.1 million posted in the same period last year.

The retailer’s sales jumped 14 percent to $133.4 million compared to net sales of $117.5 million for the same quarter last year.

The loss included a $900,000 non-cash charge associated with the expensing of stock options, and the results did not include income tax benefit as a result of the company’s establishment of a valuation allowance against a net deferred tax asset. The loss for the first quarter of last year included a $2.1 million tax benefit.

“Our business continues to be healthy as sales trends accelerate in the second quarter” said Gary Friedman, president, chief executive officer and chairman. “We expect retail comparable store sales to increase in the mid single-digits versus a 5.6 percent increase last year and direct to customer sales to increase 35 to 40 percent against a 50 percent increase last year.”

For the second quarter, the company expects revenue growth of 17 percent to 20 percent over last year’s second quarter.