Restoration Hardware Inc. (Corte Madera, Calif.) has reported a 19 percent increase in net revenue for its first quarter ended April 30, 2005.
Same-store sales increased 5 percent.
“We are pleased with our overall performance in the first quarter. Our results were substantially improved with sales in all channels showing continued solid gains,” said chairman, president and ceo Gary Friedman. “Our comparable store sales in the first quarter of 2005 increased 5 percent on top of a 9 percent increase in the first quarter last year and an 11.9 percent increase in the first quarter of 2003. That, coupled with a 50 percent increase in our direct- to-customer division revenue in the first quarter of 2005 on top of a 94 percent increase in the prior year’s first quarter, reflects our customers’ continued positive response to our strategy, and the growing strength of our brand.”
Friedman said, “Our current plans . . . include the remodeling of a majority of our stores in the second quarter. This will enable us to expand the merchandise offerings in certain core businesses and present those offerings with more clarity and focus. The remodeling program is expected to require an investment of $15 million and will be substantially completed in advance of the fall season. This will also require the removal of some existing store fixtures.”
The company also announced today that it is exploring the launch of a new brand that is expected to be tested with the introduction of a new catalog in the fall of 2006 or the spring of 2007. Lisa Versacio has joined the company as senior vp, new business development, to head this effort. Versacio previously worked for five years at Williams-Sonoma Inc. (San Francisco), where she developed and launched the West Elm concept.