Restoration Hardware Sales Rise, Loss Grows

Restoration Hardware Inc. said its fiscal third-quarter loss widened by more than 35% even as revenue grew nearly 9%.

The upscale home furnishings retailer, based in Corte Madera, Calif., said it lost $4.2 million, or 11 cents a share. That compared with a net loss of $3.1 million, or 9 cents, a year earlier.

Revenue for the quarter ended Oct. 29 was $128.4 million, up from $118.2 million a year earlier. Sales at stores open at least a year fell 2.1%.

Analysts polled by Thomson Financial expected the company, on average, to lose 11 cents a share on sales of $128.7 million.

“While we were disappointed with our sales for the quarter, primarily due to the sales from our fall lighting sale, our fundamental business model continues to improve,” Chief Executive Gary Friedman said.

The retailer said it expected fourth-quarter same-store sales to be down by a percentage in the low single digits, a reversal from a 5.7% increase last year.

The company projected earnings of 29 cents to 33 cents a share, trailing the average analyst estimate of 35 cents.

Restoration Hardware shares fell 6.5% to $5 after hours. The stock had risen 7 cents to $5.35 in regular trading.