Financial Reports: Restoration Hardware, Delia’s

Restoration Hardware Enjoys Huge Gains in Direct Sales
Fourth-quarter direct sales at home furnishings cataloger/retailer Restoration Hardware rose a whopping 59%, to $76.3 million for the three months ended Feb. 3. That’s up from $48.2 million for the fourth quarter of fiscal 2005. Total revenue for the quarter increased 27%, to $243.0 million from $191.0 million. Same-store sales increased 9%. Net income was $13.6 million, compared with the previous year’s fourth-quarter net loss of $19.5 million.

The Corte Madera, CA-based company saw direct sales for the year climb 52%, to $243.6 million from $160 million in fiscal 2005. Total revenue increased 23%, to $712.8 million from $581.7 million. Same-store sales rose nearly 6%. Net income was $3.3 million, compared with the previous year’s net loss of $29.3 million.

During fiscal 2006 Restoration Hardware launched a new brand, Brocade Home, aimed at a younger, female audience, and two spin-off catalogs, Restoration Hardware Outdoor and Restoration Hardware Gifts. This month it is mailing its first Restoration Hardware Bed & Bath catalog. The company also expects to introduce a Restoration Hardware Kids catalog and Website next spring.

Direct Sales Up at Delia’s for Quarter, Year
Fourth-quarter sales at New York-based cataloger/retailer Delia’s increased 14%, to $89.4 million for the three months ended Feb. 3, Net income shot up 41%, to $6.8 million from $4.9 million the previous fourth quarter. Sales for the direct segment–the catalogs and Websites of teen girls’ apparel brands Delia’s and Alloy and extreme-sports gear merchant CCS—rose 5%, to $60.8 million from $57.8 million. Same-store sales increased 5%. Total retail sales increased 39%, to $28.5 million.

For the fiscal year, total sales increased 14%, to $257.6 million from $226.7 million for 2005. Net income was $5.8 million, an appreciable turnaround from the previous year’s net loss of $10.3 million. Direct sales for the year rose 10%, to $173.5 million from $158.0 million. Same-store sales for the retail segment fell 2%, but overall retail sales increased 22%, to $84.1 million.

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