Restoration Hardware Reports November - December Holiday Sales
08 Enero 2004 - 5:00AM
PR Newswire (US)
Restoration Hardware Reports November - December Holiday Sales
CORTE MADERA, Calif., Jan. 8 /PRNewswire-FirstCall/ -- Restoration
Hardware, Inc. today announced net revenue for the nine weeks ended
January 3, 2004 of $128.8 million, compared to net revenue of
$127.4 million reported for the same period last year. Comparable
store sales declined 3.5% from the prior year. Net sales in the
Direct-to-Customer division, which includes catalog and Internet
sales, increased 40% versus a year ago. At the end of the third
quarter, the Company experienced increased demand from orders not
yet delivered in the amount of $8.8 million. As expected, a
significant amount of those orders (which include deliveries
in-transit, backorders and special orders) were delivered and are
reflected in the Company's November-December Holiday sales results.
However, the high level of new customer demand created during the
Holiday selling period resulted in a further increase in the amount
of outstanding orders not yet delivered and more than offset the
positive effect from the undelivered demand at the end of the third
quarter. Therefore, the Company expects this backlog of orders not
yet delivered to have a positive effect on revenue as undelivered
demand normalizes over the next several months. Mr. Friedman, the
Company's President and Chief Executive Officer, commented, "Our
results for the November-December Holiday period were
disappointing. Sales in key Holiday gift categories performed well
below our plan. Clearly, as we repositioned the brand and built
dominant year-round core businesses, we did not spend adequate time
on developing the gift component of our business in our retail
stores. On a positive note, our Direct-to-Customer sales increased
40%, demonstrating strong customer demand and improved catalog
response rates." Mr. Friedman continued, "While disappointed with
our Holiday results, we remain confident that our long term
strategy to position Restoration Hardware as the premium lifestyle
brand built on a foundation of strong core businesses is correct.
We expect our business to rebound quickly in January with the
launch of our Annual Bathware Event, and build on the positive
customer reaction to our strategy that we have seen in prior
quarters. The Company will finish 2003 with improved results,
positive cash flow, lower debt and a stronger balance sheet than a
year ago." The Company also updated guidance for the fourth quarter
of fiscal 2003. The Company now expects to report total net revenue
in the range of approximately $160-$164 million, an increase of 3%
to 6% over the prior year's fourth quarter. The Company forecasts
comparable store sales to be flat for the fourth quarter, compared
to a 3% increase in the prior period a year ago. Net income for the
fourth quarter is expected to be in the range of approximately $7
to $9 million, with diluted earnings per share in the range of
approximately $0.20 to $0.24 versus earnings of $9.7 million, or
$0.26 diluted earnings per share in the prior year. About
Restoration Hardware, Inc. Restoration Hardware, Inc. is a
specialty retailer of home furnishings, functional and decorative
hardware and related merchandise that reflects the Company's
classic and authentic American point of view. Restoration Hardware,
Inc. sells its merchandise offering through its retail stores,
catalog (800- 762-1005) and on-line at
http://www.restorationhardware.com/. As of January 8, 2004 the
Company operated 103 retail stores in 31 states, the District of
Columbia and Canada. Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: This release contains
forward-looking statements that involve known and unknown risks.
Such forward-looking statements include, without limitation,
statements concerning or relating to implications of the Company's
revenues and financial results for the fourth quarter ending
January 31, 2004, statements concerning financial and earnings
guidance for the fourth quarter of 2003, statements relating to
expectations in connection with deliveries of firm orders and
corresponding revenue recognition in the fourth quarter and beyond,
statements relating to expected revenue from the Company's Annual
Bathware Event, statements concerning customers' responses to
merchandising and marketing programs of the Company and
implications of such responses on the Company, statements implying
the Company's product offerings, statements regarding holiday
trends, and other statements containing words such as "believes,"
"expects," and words of similar import or statements of
management's opinion. These forward-looking statements involve
known and unknown risks, uncertainties and other factors that may
cause the actual results, including financial results, market
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause such
differences include, but are not limited to, timing of delivery of
orders not yet delivered and customer acceptance of such
deliveries, actual recognition of revenues from orders not yet
delivered, customer reactions to the Company's Annual Bathware
Event, customer's reactions to the current and anticipated
merchandising and marketing programs and strategies, timely
introduction and customer acceptance of the Company's merchandise,
continued positive customer reaction to the Company's catalog and
Internet offerings, revised product mix and prototype stores,
further customer acceptance of the Company's private label credit
card, timely and effective sourcing of the Company's merchandise
from its foreign and domestic vendors and delivery of merchandise
through its supply chain to its stores and customers, effective
inventory and catalog management, changes in investor perceptions
of the Company, fluctuations in comparable store sales, limitations
resulting from restrictive covenants in the Company's credit
facility, changes in economic or business conditions in general,
changes in political conditions in the United States and abroad in
general, changes in product supply, changes in the competitive
environment in which the Company operates, changes in the Company's
management information needs, changes in customer needs and
expectations, governmental actions and other factors detailed in
the Company's filings with the Securities and Exchange Commission,
including its recent filings on Forms 10-K, 10-Q and 8-K,
including, but not limited to, those described in the Company's
Form 10-Q for the fiscal quarter ended November 1, 2003 in Part I,
Item 2 thereof ("Management's Discussion and Analysis of Financial
Condition and Results of Operations") under the captions "Liquidity
and Capital Resources," "Critical Accounting Policies," and
"Factors that May Affect our Future Operating Results" and in Part
I, Item 4 thereof ("Controls and Procedures"). Guidance offered by
the Company represents a point-in-time estimate made by management
of the Company. The Company undertakes no obligation to update any
guidance or any other forward- looking statements in order to
reflect events or circumstances that may arise after the date of
this release. http://www.newscom.com/cgi-bin/prnh/19990902/RSTOLOGO
http://photoarchive.ap.org/ DATASOURCE: Restoration Hardware, Inc.
CONTACT: Patricia McKay, Chief Financial Officer of Restoration
Hardware, Inc., +1-415-924-1005, or fax, +1-415-945-4679 Web site:
http://www.restorationhardware.com/
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