Restoration Hardware Tumbles After Cutting Sales ForecastLindsey Rupp
Restoration Hardware Holdings Inc., a seller of high-end home furnishings, fell 5 percent in late trading after cutting its annual revenue forecast.
Sales will be $1.85 billion to $1.87 billion in the fiscal year ending Jan. 31, the Corte Madera, California-based company said yesterday in a statement. Restoration Hardware had previously predicted as much as $1.89 billion.
The company mailed out its source books -- massive catalogs of its furniture and housewares -- seven weeks later than last year, hurting sales in the second quarter, Chief Executive Officer Gary Friedman said in the statement. Still, the company has seen business accelerate during the second half, he said.
“Being in the retail business is like being at war -- you need to have a solid strategy that is constantly evolving,” Friedman said on a conference call. “No matter what your plan or forecast is, it is some degree of wrong and what matters is how quickly you improvise, adapt and overcome. That is what I believe we are very good at.”
Restoration Hardware shares fell to $77.91 in extended trading after the results were released. The stock had climbed 22 percent to $82.05 this year through yesterday’s New York close.