Gifts Title Coming From Restoration Hardware

Aug 31, 2006 8:06 PM  By

Home decor and furniture merchant Restoration Hardware is keeping the spin-offs coming. The Corte Madera, CA-based company, which in March introduced an outdoor catalog, and in mid-September is scheduled to drop a 64-page Brocade Home title for its new brand of more feminine furnishings, has announced it will launch a gifts catalog in time for the holiday season.

The company in a statement said that the new concept would be “supported by a unique assortment and fresh merchandising approach,” which may mean that Restoration Hardware is revisiting its roots as a quirky gifts merchant. Its initial catalog, founded in 1998, sold an eclectic mix of merchandise ranging from retro toys, tools, and food to cleaning products and leather sofas. Restoration Hardware shifted its focus to more to furniture, lighting, and linens in 2001, after CEO Gary Friedman joined the company from Williams-Sonoma. Calls to the company were not returned by press time.

In reporting its second-quarter results on Aug. 28, Restoration Hardware announced that for the first time in its history, the company was profitable outside of the fourth quarter. For the quarter ended July 29, net revenue increased 24% to $179.3 million, compared to $144.8 million for period last year. Direct-to-customer revenue increased 58% to $67.9 million, compared to a 50% increase for the second quarter last year. Comparable store sales increased 4.3% for the quarter over a 5.6% increase last year. Net income for the second quarter was $0.2 million, compared to a net loss of $2.5 million for the period last year.