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Restoration Hardware Cuts Earnings Forecast

California

January 01, 2003|From Reuters

Restoration Hardware Inc., an upscale home furnishings retailer, on Tuesday sharply cut its fourth-quarter profit forecast, as holiday sales at stores open at least a year were more sluggish than expected.

The Corte Madera, Calif.-based chain of 105 stores said it now expects earnings of 25 cents to 30 cents a share, down from its forecast in November of 41 cents to 42 cents a share. It posted a loss of $1.53 a share in the year-earlier fourth quarter.

Restoration said it sees growth in same-store sales, a key gauge of retail performance, at 1% to 2% for the nine-week holiday shopping period, compared with its prior outlook for a percentage rise in the mid-to-high single digits.

It said it expects fourth-quarter same-store sales to climb 2% to 4%, down from its earlier growth target in the high-single to low-double digits on a percentage basis.

Shares of the company gained 26 cents, or 5.5%, to close at $5.01 on the Nasdaq stock market on Tuesday ahead of the announcement.

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