Restoration Hardware sees losses in the third quarter
On the heels of a takeover bid by Sears Holdings, Restoration Hardware released third quarter results today showing revenue rose 10.6 percent to $173.7 million, compared with $157.1 million in the same period last year. The company reported a net loss of $15.2 million, deeper than the $5.7 million in losses the retailer recorded last year.
Of those losses, $1.4 million came from costs associated with a merger agreement between Restoration Hardware and affiliates of investment company Catterton Partners, a plan that the retailer announced on Nov. 8. That merger agreement was challenged later in November by Sears Holdings, which offered to acquire Restoration Hardware for a slightly higher per-share price than Catterton.
Afurther $400,000 in losses was related to headcount reductions at the company’s Corta Madera, Calif.-based headquarters.
“Weakening consumer spending and traffic levels continued to affect our business in the third quarter, particularly higher ticket durable categories,” said Gary Friedman, president and CEO of Restoration Hardware. “While we are encouraged by some of the early holiday trends in our business, we remain cautious due to the macro economic environment, which has proven highly challenging for the home furnishings sector this year.”
Restoration Hardware opted not to hold a third quarter conference call because of “pending merger agreement activities.” The company said it would update investors through press releases and filings with the Securities and Exchange Commission.
Restoration Hardware sells high-end home furnishings, decorative hardware, fashion plumbing fixtures and bathware through more than 100 stores nationwide.
Canfor to close another sawmill
Canfor Corp., one of North America’s largest lumber producers, is closing another West Coast sawmill, in Chetwynd, B.C., which will result in 188 employees being laid off.
Vancouver-based Canfor attributed the closure to poor lumber markets and the impact of a high Canadian dollar. Additionally, Canfor cited those same problems in laying off 300 workers at four sawmills in British Columbia for an indefinite period late last month.
The Chetwynd sawmill has a capacity of 244 million board feet of production annually. It will close after log supplies are used up and finished products shipped, the company said, by late January or early February.
Canfor CEO Jim Shepard said the closure “is in keeping with the company’s decision to restructure its production schedules to reflect the demands of the marketplace.”
Toro acquires lawn technology business
Bloomington, Minn.-based Toro announced it has acquired Turf Guard, the wireless lawn monitoring technology business of JLH Labs.
Terms of the deal were not disclosed.
Toro said the wireless technology is used to measure moisture in soil, salinity and temperature through buried sensors that transmit data to a Web-based system.
The company said that the purchase will add to its irrigation products and will continue to be sold under the Turf Guard name.
JLH Labs chief executive Jason Hill will become part of Toro’s irrigation team.
Toro is a worldwide manufacturer of outdoor maintenance and beautification products for home, recreation and commercial landscapes.