Dive Brief:
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Furnishings retailer Restoration Hardware said Friday that Q1 comparable brand revenue, which includes same-store and direct sales, increased 15%.
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The retailer also reported profit of $7.2 million, up from $1.8 million, and a 15% revenue increase to $422.4 million, and raised guidance for the year.
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The retailer also said that its RH Modern brand to be introduced this year will include its own stores in Los Angeles and New York and that it will be integrated with its RH Contemporary Art business. The company’s planned Kitchen and Tableware line, expected at the end of 2014, is yet to launch.
Dive Insight:
Restoration Hardware has bucked much current thinking in retail, sticking with brick-and-mortar stores and its massive print catalog. The retailer didn’t expect this kind of result for Q1, saying earlier that issues at West Coast ports among others could ding sales.
But the upscale home goods retailer is well positioned in the current steadier economy; its typical customer is not the one struggling with continued stagnant wage growth.