This excerpt taken from the RSTO 8-K filed Nov 28, 2006.
Restoration Hardware, Inc. Reports Third Quarter 2006 Results
Tuesday, November 28, 2006, 4:00 pm ET
Corte Madera, Calif., November 28, 2006 Restoration Hardware, Inc. (NASDAQ: RSTO) today announced record financial results for the third quarter ended October 28, 2006. Results include the following:
Third Quarter ended October 28, 2006
Gary Friedman, the Companys President, Chief Executive Officer and Chairman stated, We are pleased to report another quarter of solid progress. Total revenues increased 22 percent, reflecting our ability to gain market share and improve profitability, despite a difficult home furnishings environment.
Mr. Friedman continued, During the quarter, comparable store sales increased 3.9%, and Direct-to Customer revenues increased a better than expected 58%, as we continue to execute our Direct-Centric Growth Strategy.
We launched two important growth initiatives during the quarter: First, we continued to extend our brand by introducing our second category extension, The Restoration Hardware Gift Catalog. In addition, we launched our new fashion home brand, Brocade Home. While still early, we are pleased with the response to both catalogs.
Mr. Friedman concluded, Looking forward, we are encouraged by the early Holiday trends in our business, and are guiding comparable store sales to be up in the high single digits, with direct-to-customer revenues increasing 50 to 60 percent in the fourth quarter. We expect operating earnings to increase significantly over the fourth quarter of last year.
Third Quarter Year-to-date ended October 28, 2006