Restoration Hardware beats Street with large Q3 profit

Corte Madera, Calif. – Restoraton Hardware Holdings Inc. (RH) beat Wall Street forecasts with net income of $19.4 million in the third quarter of fiscal 2014, more than double net income of $9.5 million in the same period a year earlier.



Net revenue grew 22% to $484.7 million from $395.8 million. Same-store sales, including direct revenue, rose 22%. Direct revenue increased 31% to $241.2 million. Restoration Hardware is focusing on building larger stores, including galleries featuring garden courtyards and loggias, reflecting pools and trickling fountains, conservatories and rooftop parks.



Along with an expanded product offer and continued enhancement of its multi-channel platform and operating infrastructure, RH sees potential for an eventual $4 billion - $5 billion annual North American sales. The company expects increases in revenue for the fourth quarter and full fiscal year 2014.



“Our ability to curate and integrate new products, categories and businesses, then test and rapidly scale them across our multi-channel platform, is at the core of our ability to gain significant share and outperform our peers in the home furnishings marketplace,” said Gary Friedman, chairman and CEO.