Restoration Hardware Inc., an upscale home furnishings retailer, Thursday posted lower quarterly net income in line with prior guidance, saying sales slowed more than expected as it slashed prices to clear holiday merchandise.
Fiscal fourth-quarter net income slipped to $7.9 million, or 21 cents a share, from $9.7 million, or 26 cents, a year earlier. Revenue in the quarter ended Jan. 31 rose to $165 million from $155.2 million a year earlier, the Corte Madera, Calif.-based company said.
Comparable-store sales increased 0.7% from the year-earlier quarter.
Analysts on average had expected the company to post earnings per share of 22 cents and revenue of $165 million.
For its fiscal first quarter, the company said it expected a net loss per share of 13 cents to 16 cents and a percentage increase in comparable-store sales in the mid- to high single digits.
For fiscal 2004, the company said comparable-store sales were expected to increase in the low to mid-single digits.
Shares of Restoration Hardware dropped 5 cents to $4.88 on Nasdaq before the company's earnings were announced.
They dropped an additional 18 cents to $4.70 in after-hours trading.