Restoration Hardware lowers outlook
Restoration Hardware has lowered its fiscal 2007 earnings guidance, due to a challenging, competitive environment in the home furnishings market and weakness in the home-building sector.
The company says it now expects a loss-per-share of between $0.21 and $0.19, “reflecting below-plan revenues and a higher-than-anticipated mix of promotional selling.”
“The company has several new growth vehicles in place that we expect will drive revenue growth in the second half of the year, including the recent introduction of Restoration Hardware Trade [and] the continued rollout of the Restoration Hardware Bed & Bath Catalog,” said Gary Friedman, president and CEO.
The company also has announced a redesigned Web site that will launch in the fall.
Additionally, the company said it has signed a 15-year lease for a new distribution center in West Jefferson, Ohio. The company said construction would begin this fall on the 800,000-square-foot facility.
The facility will be used to stock the company’s East Coast retail stores and its non-furniture, direct-to-consumer business.
Toll Brothers’ revenues down in third quarter
Horsham, Pa.-based Toll Brothers, the largest U.S. builder of luxury homes, today reported a 21 percent decline in third-quarter revenue and said that mortgage market troubles may delay a recovery in the weak housing market.
Revenue came in at $1.21 billion for the quarter ended July 31, according to preliminary results, compared to $1.53 billion for the same period last year.
Backlog declined 34 percent to approximately $3.67 billion, while signed contracts dropped 31 percent to about $727.1 million. In addition, third-quarter cancellations increased 24 percent, from 19 percent the previous quarter.
“Hesitant customers remain on the sidelines, unsure of whether home prices have bottomed,” CEO Robert Toll said in a statement. “The pace of home sales could slow further until the credit markets settle down.”
Wolseley makes two more acquisitions
Wolseley, the United Kingdom-based parent of Stock Building Supply and Ferguson, has announced two recent acquisitions in North America and Europe.
The company’s Ferguson division acquired Fire Fab, a distributor and fabricator of fire safety and suppression systems. Fire Fab, based in Minneapolis, had revenue of $12.4 million last year.
“This acquisition expands Ferguson’s presence in the growing fire protection market,” the company said in a statement.
Additionally, Wolseley’s Nordic region subsidiary, DT Group, acquired Sweden-based Save Tra Forsaljnings, a builders’ merchant with two branches in Sweden. The company had revenue of $16.5 million last year.
“This is the eighth bolt-on acquisition since DT Group joined Wolseley Group and is consistent with the plan to expand DT’s heavy side building materials footprint in the Nordic region,” the company noted.