Restoration Hardware co-CEO says farewell
Restoration Hardware co-CEO Carlos Alberini has resigned his post, effective Jan. 31, 2014. He plans to continue serving as a member of the company’s board of directors and will remain a significant shareholder.
Alberini is heading to Los Angeles, where he will take the helm as chairman of the board and CEO of Lucky Brand, effective upon closing of the pending acquisition by Leonard Green & Partners.
“On behalf of myself, the board and the entire RH team, I want to express our deepest thanks to Carlos for the numerous contributions he has made as Co-CEO,” said Gary Friedman, chairman and co-CEO. “His leadership has been invaluable, and we are delighted with his continuing service as a member of our board of directors.”
“I have been presented with an opportunity to fulfill my lifelong dream to run and build a company. Leaving RH has been one of the most difficult decisions I have ever made in my career. Gary and I have built an extraordinary relationship, which I treasure and will miss,” said Alberini. “These past few years with Gary and the RH team have been extremely rewarding and fulfilling and I am so proud of our accomplishments. I am honored and thrilled that I will continue to have the opportunity to serve on the board, and plan to remain a significant shareholder in what I believe will be recognized as one of the greatest retail stories of all time.”
The company is already developing a transition plan and will initiate a search for Alberini’s replacement soon.
News of Alberini’s departure comes as Restoration Hardware delivered another quarter of record financial results. Based on its performance during the third quarter ended Nov. 2, the company is increasing its fiscal year 2013 guidance.
Net revenues for the quarter increased 39% to $395.8 million from $284.2 million for the third quarter last year. This is on top of a 22% increase in net revenues for the third quarter of fiscal 2012. Comparable-store sales increased 29% for the quarter, on top of an increase of 29% in comparable-store sales for the third quarter last year. Direct revenues increased 47% in the quarter, on top of the 24% increase in direct revenues for the third quarter last year.
“Our exclusive products, dominant assortments, taste and style continue to resonate with consumers across all channels,” said Friedman. “We believe that the significant growth in our direct and total business provides the initial data points demonstrating that the most recent evolution of our Source Book strategy was a highly profitable decision. The strong top-line growth coupled with advertising savings and operating leverage drove a 390 basis point increase in adjusted operating margins and 389% growth in adjusted net income during the quarter while we continued to invest in our infrastructure and new businesses to support our future growth.”
As of Nov. 2, the company operated a total of 70 retail stores, consisting of 62 galleries, 5 full-line design galleries and 3 baby and child galleries, as well as 17 outlet stores throughout the United States and Canada.
“The transformation of our real estate continues to be our highest priority and represents a tremendous opportunity to unlock the value of our dominant assortment,” added Alberini. “Our five full-line design galleries continue to exceed our expectations. We remain on track with our plan to open full-line design galleries in Greenwich, Los Angeles and Atlanta in 2014 and anticipate opening 10 or more locations per year beginning in 2015.”