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Study: Improving economy helps some retail verticals
Consumers are being choosy about where they are spending extra money that is becoming available with the end of the recession.
According to a new study from Mintel, more than two in five (44%) Americans describe their financial situations as "healthy" in 2016, compared to 37% in 2015 and 33% in 2013, indicating that improvements in the economy are being felt at a household level. However, different retail categories are receiving the benefit more than others.
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Restoration Hardware misses Street in tough Q1
Specialty home furnishings retailer Restoration Hardware Holdings Inc. (RH) had what could be termed a messy start to the fiscal year.
RH swung to a net loss of $13.5 million in the first quarter of fiscal 2016, compared to net earnings of $7.2 million the prior year period, falling short of Wall Street expectations. Revenue grew 8% to $455.5 million from $422.4 million, but also missed projections. Increases in cost of goods sold and selling, general and administrative (S,G&A) expenses helped push the retailer into the red despite improving sales.