Restoration Hardware to Restate Results
The Corte Madera, CA, company gave the SEC information showing the effects of the recognition of furniture revenue at the time of shipment as opposed to the time of delivery to the customer. It had been recognizing furniture revenue at the time of shipment, but the company determined that the proper way to account for these sales is at the time of delivery.
After completion of the restatement analysis, amounts for the current quarter are not expected to vary by more than $800,000 for sales and $250,000 for net income, while totals for the current year are not expected to vary by more than $3.5 million for sales and $700,000 for net income.
Net sales were $144.3 million in the 13-week fourth quarter of fiscal 2001 compared with $144.5 million in the 14-week fourth quarter of 2000. Direct-to-customer sales -- including catalog and Internet -- skyrocketed 46.9 percent to $14.1 million from $9.6 million.
Net sales in the 52-week fiscal year 2001 totaled $365.8 million compared with $367.3 million for the 53-week 2000 fiscal year. Direct-to-customer sales rose 50 percent to $33.9 million from $22.6 million.
For the 13 weeks ended Feb. 2, the company incurred a net loss to common shareholders of $12.8 million, down from net income of $9.5 million the previous year. For the 52 weeks ended Feb. 2, the company incurred a net loss to common shareholders of $36.9 million, compared with a net loss of $3.4 million.