Design Within Reach Reports Return To Profitability

November 12, 2007  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on November 2007 Design Within Reach, San Francisco, returned to profitability in the company’s third quarter as sales increased 11.6 percent to $49 million.

Net income for the third quarter was $2.4 million after a net loss of $1.2 million in the third quarter of 2006.

“We are pleased to announce that the third quarter marked a return to profitability for Design Within Reach, and that our continued efforts to improve margins and manage expenses have begun to show a positive return,” said CEO Ray Brunner. “In a quarter characterized by challenging industry trends, our strong sales performance validates the market demand for well designed products.”

He said the company expects to broaden its audience with a new gift assortment at attractive price points. Brunner said he is “cautiously optimistic” about 2008 as the company continues to focus on growth strategies, expense control and margin control.

Sales in the company’s 65 stores, which it calls studios, increased 16 percent to $31.9 million. Direct Internet and phone sales decreased 3 percent to $11.8 million.

The company continues to expect full-year sales to reach about $190 million with break even earnings.