Corte Madera, Calif. – Restoration Hardware grew its net income an impressive 389% to $13 million from $2.7 million in the same period a year earlier. Net revenues for the third quarter of fiscal 2013 increased 39% to $395.8 million from $284.2 million, while same-store sales increased 29%.
Gary Friedman, chairman and co-CEO of Restoration Hardware, credited net revenue growth and advertising savings as factors driving the company’s net income increase. The strong quarterly financial performance exceeded Wall Street expectations.
“We are pleased to report another quarter of record financial results,” said Friedman. “Our exclusive products, dominant assortments, taste and style continue to resonate with consumers across all channels. We delivered 39% growth in total revenues driven by a 47% increase in direct revenues, and 29% same-store sales growth on top of 29% in the year ago quarter. 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.”
For the fourth quarter of fiscal 2013, Restoration Hardware expects net revenues in the range of $490 million to $500 million and adjusted net income in the range of $34.3 million to $35.5 million. For the full fiscal year 2013, the retailer expects net revenues in the range of $1.57 billion to $1.58 billion and adjusted net income in the range of $69.4 million to $70.6 million.