Restoration Hardware records losses in Q2
Specialty home decor and decorative hardware retailer Restoration Hardware has announced second quarter losses of $5.5 million, swinging from $2.1 million in profit last year.
Sales rose 2.2 percent to $183.8 million compared with $179.3 million in last year’s second quarter.
“Our second quarter results reflect the challenging home furnishings environment and weakness in the home building sector,” said Gary Friedman, president and CEO of Restoration Hardware.
The company has implemented growth initiatives, including expanded catalog offerings, which it expects to contribute to a revenue increase of 7 to 9 percent in the second half of the year. However, the company still expects a loss of between $1.2 million to a gain of $800,000 in third quarter profit.
"Our supply chain initiatives remain on track," Friedman noted. "In the first half of the year we retrofitted our Furniture Distribution Centers and consolidated our small package direct-to-customer operations.”
Restoration Hardware operates 102 retail stores and eight outlet stores in 30 states, Washington D.C. and Canada.