Restoration Hardware keeps building; launching new businesses

Corte Madera, Calif. – Restoration Hardware Holdings Inc., which is set to launch two businesses in its third quarter, had generally rewarding second quarter of fiscal 2015.



Net income rose 9% to $29.93 million from $27.25 million the same period a year earlier, with costs and expenses not growing at the same rate as sales.



Net revenues grew 17% to $506.94 million, from $433.77 million. Store revenues increased 21% to $268.5 million, and direct revenues increased 13% to $238.5 million. Same-brand revenue rose 16%. Direct revenues represented 47% of total revenues.



Through September and November, the chain will launch its two new format, RH Modern and RH Teen, each with their own catalog, website, and retail presence.



During this same period, the company will open four of its namesake next-generation stores in Chicago, Denver, Tampa and Austin, along with a RH Modern store in Los Angeles, and RH Baby & Child locations in West Palm Beach, Florida, and Greenwich, Connecticut.



“We believe that the launch of RH Modern and RH Teen late in the third quarter, coupled with the new next generation Design Galleries opening in October and November, puts us on a clear path to accelerate our growth in the fourth quarter and into fiscal 2016,” said Gary Friedman, chairman and CEO.



Gary Friedman, president and CEO, commented on two new omnichannel businesses Restoration Hardware plans to launch in the current quarter.



Looking ahead, Restoration Hardware expects third quarter fiscal 2015 revenues in the range of $531 million to $541 million and adjusted net income in the range of $25.5 million to $27.5 million.



For the fourth quarter of fiscal 2015, the retailer expects net revenues in the range of $698 million to $708 million and adjusted net income in the range of $58.3 million to $60.4 million. For the full fiscal year, Restoration Hardware projects net revenues to increase in the range of $2.16 billion to $2.18 billion.