Restoration Hardware Posts Q4, Fiscal 2013 Gains

Restoration Hardware Holdings, Inc. posted net gains for both Q4 and fiscal 2013, and announced the appointment of Doug Diemoz as chief development officer . Net revenues for the quarter advanced 18% to $471.7 million, bouncing back from a loss in both the quarter and year in 2012. Excluding the effect of an extra week in the previous-year quarter, revenues rose 26%.

Restoration Hardware’s comparable brand revenue growth, including direct revenues, rose 24%, compared to 29% last year. Further, comparable store sales (comps) for the quarter rose 17%, compared to 26% last year. The company’s direct revenues came in at $228.9 million at the end of the fourth quarter, up 22% year over year.

 Adjusted earnings before interest, taxes, depreciation and amortization (:EBITDA) was $66 million, 35% above the prior-year figure, according to the company.

For full-year 2013, net revenues increased 30% to $1.6 billion, coming in line with the Zacks Consensus Estimate. However, excluding the impact of the extra week in fiscal 2012, revenues scaled up 33% year over year.  Comparable brand revenue growth, including direct revenues, climbed 31%, as against a 28% increase last year. Comps for the fiscal year increased 27%, following a 28% rise last year. Finally, direct revenues of the company advanced 33% to $732.6 million.

 Adjusted EBITDA for the year was $148.6 million, up 25% year on year.

By the end of fiscal 2013, the company operated 70 retail outlets, including 62 galleries, three baby and child galleries, five full-line design galleries and 17 outlet stores across the U.S. and Canada.

In the newly created position of chief development officer, Diemoz will be responsible for the development and management of emerging new business, the company said. He will report to Restoration Hardware chairman and CEO Gary Friedman.

 “On behalf of the entire RH team, I am thrilled that Doug will be joining RH,” Friedman said. “I’ve known and admired Doug for years and believe his high energy, drive, and collaborative nature is an excellent fit for our culture. His finance, operations, and international experience will be invaluable as we execute our long term growth strategy.”

Diemoz served most recently served as CEO of MEXX, an Amsterdam-based, international fashion brand in over 46 countries Prior to his tenure at MEXX, from 2011 to 2013, Diemoz spent more than nine years at Williams-Sonoma, Inc. in various senior finance roles.