Restoration Hardware Q4 beat Street; two new concepts in works

Corte Madera, Calif. -- Restoration Hardware Holdings Inc. (RH) reported that its profit for the fourth quarter increased a better-than-expected 25% to $42.5 million from $34.0 million in the year-ago period. The upscale home furnishings company cited the West Coast port slowdown in providing first-quarter guidance that fell short of projections. But it remained upbeat about the long-term, and disclosed that it is working on two new concepts that will be revealed later this year.



“While we have been negatively impacted by the West Coast port disruption in the first quarter of this year, we believe at this point most of the revenue and earnings ... should shift forward and have a positive effect on the second quarter," said CEO Gary Friedman.



Restoration Hardware’s total sales in the fourth quarter grew 23.5% to $582.7 million.



For the year, the company reported profit of $91 million. Revenue was reported as $1.87 billion.



“RH continues to outperform the home furnishings industry by a wide margin,” said Friedman. “Fiscal 2014 marks RH’s fifth consecutive year of net revenue growth in excess of 20% -- averaging approximately 25% net revenue growth during that period. After four years of at least 25% comparable brand revenue growth, RH achieved 20% comparable brand revenue growth in fiscal 2014, a milestone unseen amongst our home furnishings peers.”



The company said it expects revenue in the range of $415 million to $420 million for the fiscal first quarter, less than what had been forecast.