Restoration Hardware Posts Loss Despite Strong Sales Growth
NEW YORK (TheStreet) - Restoration Hardware
Restoration Hardware reported a net loss of $17.8 million, or 46 cents a share, as a result of stock-based compensation charges and expenses related follow-on offerings. Meanwhile adjusted net income rose 62% to $19.8 million, or earnings of 49 cents a share, from the same period last year.
Meanwhile, the Corte Madera, Calif.-based company said that revenue jumped 30% in the quarter to $382.1 million, while comparable store sales increased 26%.
Analysts, according to Thomson Reuters, expected the company to earn 43 cents a share on revenue of $378 million.
The company has been undergoing a transformation from high-end furniture and domestics store to adding product lines including kitchen and tableware, as well as apparel and accessories. Restoration Hardware went public in November.
Gross profit fell to 36.4% of net revenue compared to 39% in the year-earlier period. Selling, general and administrative expenses jumped 77% to $167 million.
Restoration Hardware upped its EPS guidance for 2013. It now expects to report adjusted diluted earnings of $1.65 to $1.70 a share for the year, up from $1.41 to $1.47 a share.
For the third quarter, it expects revenue between $385 million and $395 million and adjusted diluted earnings of 27 cents to 29 cents a share. Analysts, according to Thomson Reuters, estimated third-quarter earnings of 16 cents a share.
Shares were falling 2.2% to $74.40.
-- Written by Laurie Kulikowski in New York.
To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com.
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