Restoration Hardware lowers outlook
Restoration Hardware has lowered its fiscal 2007 earnings guidance, due to a challenging, competitive environment in the home furnishings market and weakness in the home-building sector.
The company says it now expects a loss-per-share of between $0.21 and $0.19, “reflecting below-plan revenues and a higher-than-anticipated mix of promotional selling.”
"The company has several new growth vehicles in place that we expect will drive revenue growth in the second half of the year, including the recent introduction of Restoration Hardware Trade [and] the continued rollout of the Restoration Hardware Bed & Bath Catalog,” said Gary Friedman, president and CEO.
The company also has announced a redesigned Web site that will launch in the fall.
Additionally, the company said it has signed a 15-year lease for a new distribution center in West Jefferson, Ohio. The company said construction would begin this fall on the 800,000-square-foot facility.
The facility will be used to stock the company’s East Coast retail stores and its non-furniture, direct-to-consumer business.