Restoration Hardware 1Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$RH Earnings Call Notes

“we delivered industry leading sales growth with a net revenue increase of 38%…an outstanding 41% comparable store sales increase, which was on top of a 26% comp increase in the year-ago quarter.”

“We are receiving overwhelming support and interest from the landlord community, with offers to become an anchor tenant in several of the most prestigious shopping centers in North America.”

“Our growth has been driven by a combination of new products, new categories, new businesses and the reconceptualization of both our retail and direct platform.”

“producing industry leading sales per square foot in our galleries and with continued innovation and refinement will also result in what we believe will be one of the most compelling and productive multi-channel experiences in retail.”

“Richard Harvey has joined us as Chief Merchandising Officer for RH Kitchen and Tableware. As you know Richard’s had a distinguished career at Williams-Sonoma, most recently as the President of the $1 billion Williams-Sonoma brand”

“We also operated fewer stores overall with 70 galleries open at the end of the first quarter versus the 74 we had open last year.”

“Gross profit in the first quarter increased 35% and reached a 101.9 million. Gross margin decreased to 33.8% from 34.5%”

” the number one room that’s remodeled in homes is the kitchen. And that’s where the significant spending is and we believe we can be a dominant player there in have a real platform.”

“we have not disclosed margins by product categories, what we have said in the past is that we have marked the furniture business does carry a lower margin structure, especially when you consider shipping cost, that are significantly higher than the rest of the business and those trends are ongoing.”

“You should not be surprised to see that we could open anywhere north of 10 to 15 units in any particular year.”