Restoration Hardware Holdings has announced the appointment of former Williams-Sonoma brand president Richard Harvey to the position of chief merchandising officer, RH Kitchen and Tableware. At the same time, it posted a GAAP net loss of $200,000 in the first quarter versus a GAAP net loss of $3.7 million for the same period last year but an adjusted net income increase to $2.3 million from a net loss of $1.3 million in last-year’s quarter.
Harvey spent 30 years at Williams-Sonoma, most recently as Williams-Sonoma Brand president. In his role as chief merchandising officer, RH Kitchen and Tableware, Harvey will develop a curated collection of kitchen furniture, appliances, lighting, cookware, tools and food.
According to the company, RH Kitchen and Tableware will have meaningful representation in the company’s next generation Full Line Design Galleries and will be presented in a unique and distinctive catalog as well as featured online at rh.com. Restoration Hardware expects RH Kitchen and Tableware to launch in late 2014.
“Kitchen and Tableware represent a $25 billion market and a significant growth opportunity for our company,” said Carlos Alberini, Restoration Hardware CEO. “We are honored that Richard, arguably the most experienced and talented leader in this industry, has joined our team.”
Gary Friedman, chairman emeritus, creator and curator, and another Sonoma alum, said, “I am thrilled to once again work with Richard to reimagine and reinvent this important part of the home. We believe the kitchen represents a tremendous opportunity for us to express our creativity and design point of view.”
Harvey commented, “I am delighted to join Gary, Carlos and this innovative organization and am excited to have the opportunity to conceptualize a new and original expression of this business.”
Restoration Hardware comparable store sales increased 41% in the first quarter, the company asserted, while direct revenues increased 38% from the period last year. Adjusted operating income advanced to $4.6 million from an operating loss of $600,000 for the same period last year.
Net revenues increased 38% to $301.3 million.
In a statement on the financial results, Alberini pointed to “a significant improvement in profitability as we continued to invest in our infrastructure and new businesses to support our growth. We are receiving overwhelming support and interest from the landlord community, with offers for leases with more favorable terms that are typically available only to anchor tenants in several of the most prestigious shopping centers in North America. We believe that over time, these new deals will enable us to deliver higher sales and increased earnings, reduce our capital investment, and achieve higher ROIC. We now see opportunities to have Full Line Design Galleries in more than the approximately 50 markets we previously identified and are currently in lease discussions for over 30 locations in North America including New York, Chicago, Miami, Denver, Nashville, New Orleans and San Diego, among many others.”
Friedman asserted, “Our continued industry leading performance is a reflection of our demonstrated ability to innovate, curate and integrate new products, businesses and experiences. Our spring collection, inclusive of our new catalogs, RH Tableware and RH Objects of Curiosity, is performing ahead of our plans. This fall, we plan to launch two new catalogs, RH Leather and RH Rugs. The new catalogs will include expanded and dominant collections presented in a dramatic and innovative context. As previously announced, this fall we will also launch RH Contemporary Art.”
He added that the new RH Kitchen and Tableware, and RH Antiquities businesses would provide “another logical opportunity for growth as we expand beyond our initial tableware offering and create a curated collection of kitchen furniture, appliances, lighting, cookware, tools and food. RH Antiquities will provide an opportunity to fill current customer demand with a curated collection of antiques as we enter this $25 billion highly fragmented market. These new businesses will further enhance our brand position and provide meaningful long-term growth opportunities.”