Furnishings chain swings to a loss
Restoration Hardware Inc., a home-improvement and furnishings retailer, said it swung to a loss in the fiscal second quarter, hurt by weak sales and more promotional selling as housing market problems persist.
For the quarter that ended Aug. 4, the company lost $7.9 million, or 20 cents a share, versus a year-ago profit of $236,000, or a penny a share. Revenue rose nearly 3% to $183.8 million.
This month the company lowered its guidance to a loss of 19 cents to 21 cents a share and said it expected revenue between $183 million and $185 million.
Analysts polled by Thomson Financial expected a loss of 20 cents a share on revenue of $183.9 million.
The company said results were hurt by weakness in the home building sector and the “challenging†home-furnishings environment.
Restoration Hardware said it expected the difficult retail environment to persist and forecast a loss for the fiscal third quarter.
Shares of the Corte Madera, Calif.-based company were unchanged at $3.50.
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