Restoration Loss Widens

By Staff -- Home Textiles Today, 6/9/2008 12:00:00 AM

Corte Madera, Calif. —

Specialty retailer Restoration Hardware reported a first quarter net loss of $19.6 million on a 1.8% sales uptick to $144.8 million.

Last year's first-quarter net loss was $13.0 million, RH said.

Store revenue was down 30% to $58.7 million from $83.5 million in the same period one year ago, and the store division dipped from an operating profit of $5.3 million to a loss of $3.6 million in this year's first quarter. The number of stores was essentially the same year-to-year; RH now operates 101 locations.

In the direct-to-consumer segment, revenue of $86.0 million was up 47% from year-ago volume of $58.6 million, the company said — with operating income jumping 23.5% to $20.2 million. About half of the gain, RH said, was realized by consolidating small package shipments into a single distribution center.