Reorg for Restoration Hardware

Aug 16, 2007 1:22 AM  By

Home décor, furniture, and gifts cataloger/retailer Restoration Hardware is reorganizing. As a result, the merchant announced on Aug. 14 that it will eliminate about 100 positions at its corporate headquarters.

President/CEO Gary Friedman said in a statement that the job cuts are being made because of “challenging market conditions in the home furnishings sector.” The new structure is expected to save the company about $9 million annually.

Calls to Restoration Hardware’s Corte Madera, CA, offices were not returned by press time. But Friedman said the two catalogs the company rolled out in 2007–Restoration Hardware Bed & Bath and Restoration Hardware Baby & Child—as well as the recently launched Restoration Hardware Trade division, are still parts of Restoration’s growth strategies.

Last week, Restoration Hardware announced it anticipated lower-than-expected revenue for the quarter ended Aug. 4. Friedman said in a statement it expected revenue of $183 million to $185 million for the quarter, down from its prior view of $195 million to $199 million. The company had revenue of $179 million in the same quarter last year.