Furniture Business News

Restoration Hardware cuts about 100 jobs

August 16th, 2007

— Furniture Today,
Company says move should save $9 million a year

CORTE MADERA, Calif. — Restoration Hardware said it is cutting about 100 jobs at its corporate headquarters here, a response to tough times in the home furnishings sector.


The retailer said the reorganization should save the company $3.5 million for the rest of this year and about $9 million annually.

“This is a difficult but necessary decision that will enable us to operate more efficiently in the current environment,” said Gary Friedman, Restoration president and CEO.

“We believe the cost cutting actions we have announced this year, combined with our strategic growth and supply chain initiatives, will drive improved sales and profitability in the second half of 2007 compared to a year ago,” he said.

He added that the company remains committed to executing it strategies to its growth strategies, which include its Restoration Hardware Bed & Bath, Restoration Hardware Baby & Child and Restoration Hardware Trade initiatives. The company’s team is “positioning the business to achieve our long-term revenue and operating margin goals,” he said.

Restoration Hardware operates 102 full-line stores and eight outlet stores in 30 states, the District of Columbia and Canada. It also sells online and through its catalog.

The company is ranked No. 22 on Furniture/Today’s Top 100 with estimated furniture, bedding and accessories sales of $405 million in its fiscal year ended Feb. 3, up nearly 21% from the previous year.

Earlier this month, the company revised its second-quarter outlook, saying it was projecting a net loss per share of 19 to 21 cents, compared to the loss of 6 to 12 cents per share it had projected in the spring. It revised its expected revenue for the quarter down to $183 million to $185 million, from the earlier forecast of $195 million to $199 million.

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