Corte Madera, CA-based gifts and home furnishings cataloger/retailer Restoration Hardware (Nasdaq: RSTO) reported that its net revenue increased 6% to $95.8 million for the third quarter ended Nov. 1, compared with $90.8 million last year. Direct sales increased 46% to $16.0 million.
Comparable store sales for the third quarter increased 2.9%. But the gains weren’t enough to wipe away Restoration Hardware’s net loss, which widened to $2.9 million compared to $2.4 million net loss last year.
While the quarter’s total revenue and comparable store sales were lower than anticipated, demand from orders not yet delivered increased $8.8 million in the quarter primarily thanks to fall sales events, and the launch of its special order upholstery program. The company had anticipated recording the revenue from those events during the third quarter at the time of the sale. Rather, the revenue will be recognized once the goods are delivered to the customer.