Quarterly Loss Projected At Restoration Hardware

August 8, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2007 Restoration Hardware, Corta Madera, Calif., announced Wednesday that its second-quarter earnings are likely to reflect a loss. Citing weakness in the home sector, the company said it expects to see a loss per diluted share of 21 cents to 19 cents due to below-plan revenues and higher costs. The company will report earnings on Aug. 30.

Net revenues are likely to be in the range of $183 million to $185 million—versus $179 million in the same period of 2006—for the quarter that ended August 4. In May, the company said it expected second-quarter revenues to top $195 million.

Gary Friedman, president and CEO of the 110-store chain, said he expects improvement later in the year. “The growth and infrastructure investments we made in the first half of 2007 should provide a catalyst for earnings improvement in the third and fourth quarters of the year. In addition, as previously announced, we have significant cost savings initiatives that will be realized in the second half of 2007 and into 2008, including lower catalog production costs versus last year.”

He said the company will provide additional information on its outlook for the third and fourth quarters when it reports its second-quarter results. At the close of its first quarter in May, the company projected that annual revenues would increase by 9 percent to 11 percent over fiscal 2006 to reach $780 million to $793 million.