Restoration Hardware reports record Q1 results
Corte Madera, Calif. — Restoration Hardware reported record financial results during the first quarter of fiscal 2013, including a net income of $2.3 million compared to a net loss of $1.3 million in the first quarter of the prior year. The company also named Richard Harvey, who spent 30 years as an executive at Williams-Sonoma, most recently as president of Williams-Sonoma brand, as chief merchandising officer of its RH Kitchen and Tableware line.
Net revenues for the first quarter of fiscal 2013 increased 38% to $301.3 million from $217.9 million for the first quarter of fiscal 2012. This was on top of an 18% increase in net revenues for the first quarter of fiscal 2012. Same-store sales grew 41%, on top a 26% increase in the first quarter of 2012.
Restoration Hardware officials cited favorable landlord agreements and strong performance of its spring collection as drivers of first quarter results, and said the retailer is currently in lease discussions in locations including New York, Chicago, Miami, Denver, Nashville, New Orleans and San Diego.
"Our continued industry leading performance is a reflection of our demonstrated ability to innovate, curate and integrate new products, businesses and experiences,” said Gary Friedman, chairman emeritus. “Our spring collection, inclusive of our new catalogs, RH Tableware and RH Objects of Curiosity, is performing ahead of our plans. This fall, we plan to launch two new catalogs, RH Leather and RH Rugs. The new catalogs will include expanded and dominant collections presented in a dramatic and innovative context.”
In addition, Restoration Hardware has launched two new businesses, RH Kitchen and Tableware and RH Antiquities. RH Kitchen will offer a curated collection of kitchen furniture, appliances, lighting, cookware, tools, and food, while RH Antiqiuites will feature a curated collection of antiques.
Macy’s enlists Empire State Building in July 4 celebration
NEW YORK — New York City’s own Empire State Building is joining the 37th annual Macy’s 4th of July Fireworks festivities. The building will be the site of a choreographed LED tower lights show designed to mirror the explosive finale of the nation’s largest pyrotechnic display.
“We are extraordinarily proud to partner with an iconic New York institution like the Empire State Building for our annual Independence Day spectacular,” said Amy Kule, executive producer of Macy’s 4th of July Fireworks. “The finale of Macy’s Fireworks is always a defining moment that perfectly caps off an incredible and always awe-inspiring 25-minute show, and a full day of celebration. Adding the Empire State Building to the already dynamic show will further ignite the New York City skyline and will be the patriotic pinnacle of a nationwide celebration of freedom.”
“We are delighted to join with Macy’s in giving a gift to the city of New York, the people of America, and viewers around the world. Partnering the world’s most famous building with the world’s most famous fireworks spectacular can only happen in New York City,” said Anthony E. Malkin of the Empire State Building. “As the iconic feature of the New York City skyline, we are honored to have this opportunity to add our unmatchable LED lights to the celebration.”
This year, Macy’s 4th of July Fireworks feature music and design elements curated and inspired by eight-time Grammy Award-winner Usher. The finale of the show entitled, “It Begins with a Spark,” will consist of a musical mash-up.
“I’m really excited that the Empire State Building will add its bright lights to the incredible show we’ve got planned for the nation. It’s going to be an epic moment when Frank Sinatra’s classic ‘New York, New York’ and the Jay-Z and Alicia Keys anthem ‘Empire State of Mind’ close out the show.”
The light show, created by Marc Brickman, will be designed and choreographed to the music, and will also mirror the effects exploding high over the Hudson River, during Macy’s famed “rumble to remember” finale moment.
ESB’s new LED tower lights debuted in Nov. 2012. Its lights allow customized light capabilities from a palette of more than 16 million colors in limitless combinations along with effects previously not possible such as ripples, cross-fades, sparkles, chasers, sweeps, strobes and bursts.
Macy’s 4th of July Fireworks will feature more than 40,000 effects exploding during the 25-minute synchronized pyrotechnic show. Fired from four barges positioned approximately between 24th and 40th Streets on the Hudson River, the display is scheduled to begin at approximately 9:25 p.m. EST. The fireworks, produced by Macy’s, are designed in conjunction with SOUSA Fireworks of Rialto, Calif.
Growth accelerating at Restoration Hardware
An astonishing 41% first quarter same store sales increase at Restoration Hardware propelled the company to significantly improved profitability and made the specialty retailer an increasingly desirable tenant.
Sales increased 38% to $301 million from $218 million for the first quarter of fiscal 2012 and that allowed the company to reverse a prior year loss. Operating income adjusted to exclude certain non-recurring expenses, was $4.6 million during the first quarter versus a prior year loss of $600,000. Net income on an adjusted basis was $2.3 million compared to a prior year loss of $1.3 million.
Restoration Hardware CEO Carlos Alberini said he was extremely pleased with the performance and that the company was receiving overwhelming support and interest from the landlord community with offers for leases with more favorable terms that are typically available only to anchor tenants in several of the most prestigious shopping centers in North America.
"We believe that over time, these new deals will enable us to deliver higher sales and increased earnings, reduce our capital investment, and achieve higher ROIC," Alberini said. "We now see opportunities to have Full Line Design Galleries in more than the approximately 50 markets we previously identified and are currently in lease discussions for over 30 locations in North America, including New York, Chicago, Miami, Denver, Nashville, New Orleans and San Diego, among many others."
As of May 4, the Company operated a total of 70 retail stores, consisting of 62 Galleries, 5 Full Line Design Galleries and 3 Baby & Child Galleries, as well as 14 outlet stores throughout the United States and Canada.
Later this year, the company plans to launch two new catalogs, RH Leather and RH Rugs that will include expanded and dominant collections presented in a dramatic and innovative context, according to the company. Those catalogs are in addition to a previously announced Contemporary Art catalog. The company is also announced the launch of two new businesses called RH Kitchen and Tableware and RH Antiquities.
"RH Kitchen and Tableware provides another logical opportunity for growth as we expand beyond our initial tableware offering and create a curated collection of kitchen furniture, appliances, lighting, cookware, tools, and food," said Gary Friedman, the company’s chairman Emeritus, creator and curator. "RH Antiquities will provide an opportunity to fill current customer demand with a curated collection of antiques as we enter this $25 billion highly fragmented market. These new businesses will further enhance our brand position and provide meaningful long-term growth opportunities."
The company’s optimistic outlook prompted it to increase its full year sales forecast to a range of $1.47 billion to $1.51 billion and adjusted net income in the range of $55.8 million to $58.2 million.