News Releases

Printer Friendly Version View printer-friendly version
<< Back
Restoration Hardware, Inc. Announces Headquarters Reorganization
CORTE MADERA, Calif., Aug 14, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Restoration Hardware, Inc. (Nasdaq: RSTO) today announced a reorganization that will result in approximately 100 positions being eliminated at its corporate headquarters in response to challenging market conditions in the home furnishings sector. The new structure is expected to yield approximately $3.5 million of cost savings after severance and outplacement charges for the balance of the year, and approximately $9.0 million of savings annually.

Gary Friedman, President and Chief Executive Officer, stated, "This is a difficult but necessary decision that will enable us to operate more efficiently in the current environment. We believe the cost cutting actions we have announced this year, combined with our strategic growth and supply chain initiatives, will drive improved sales and profitability in the second half of 2007 compared to a year ago."

Mr. Friedman added, "We remain committed to executing our strategies to drive future growth, including Restoration Hardware Bed & Bath, Restoration Hardware Baby & Child and Restoration Hardware Trade, to name a few. At the same time, we continue to make progress toward the transformation of our supply chain, which is well underway. Despite the challenging circumstances we're facing today, our team is focused and committed; we're positioning the business to achieve our long-term revenue and operating margin goals."

Restoration Hardware, Inc. is a specialty retailer of high quality home furnishings, bath fixtures and bathware, functional and decorative hardware, gifts and related merchandise that reflects the Company's classic and authentic American point of view. Restoration Hardware, Inc. sells its merchandise offering through its retail stores, catalog (800-762-1005) and on-line at http://www.restorationhardware.com. As of August 14, 2007, the Company operated 102 retail stores and eight outlet stores in 30 states, the District of Columbia and Canada.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements that involve known and unknown risks. Such forward-looking statements include, without limitation, statements relating to the expected benefits of the Company's cost savings and other operating initiatives on the Company's sales and profitability for the second half of fiscal year 2007, statements relating to the expected cost savings to the Company as a result of the Company's headquarters reorganization, statements related to the expected improvement in operations efficiency as a result of the reorganization, statements relating to the expected growth vehicles for the Company, and other statements containing words such as "expects" and words of similar import or statements of management's opinion. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, including financial results, market performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to, customer reactions to the Company's current and anticipated merchandising and marketing programs and strategies, timely introduction and customer acceptance of the Company's merchandise, positive customer reaction to the Company's catalog and Internet offerings, revised product mix, prototype stores and core businesses, timely and effective sourcing of the Company's merchandise from its foreign and domestic vendors and delivery of merchandise through its supply chain to its stores and customers, effective inventory and catalog management, actual achievement of cost savings and improvements to operating efficiencies, effective sales performance, in particular during the holiday selling season, the actual impact of key personnel of the Company on the development and execution of the Company's strategies, changes in investor perceptions of the Company, fluctuations in comparable store sales, limitations resulting from restrictive covenants in the Company's credit facility, changes in economic or business conditions in general, changes in political conditions in the United States and abroad in general, changes in product supply, changes in the competitive environment in which the Company operates, changes in the Company's management information needs, changes in customer needs and expectations, governmental actions and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its recent filings on Forms 10-K, 10-Q and 8-K, including, but not limited to, those described in the Company's Form 10-Q for the quarter ended May 5, 2007, in Part I, Item 2 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations"), in Part I, Item 4 thereof ("Controls and Procedures"), and in Part II, Item 1A thereof ("Risk Factors").

Contact: Chris Newman, SVP & CFO 415 945 3578

Christine Greany, The Consumer Group 858 523 1732

SOURCE Restoration Hardware, Inc.

Chris Newman, SVP & CFO of Restoration Hardware, Inc., +1-415-945-3578; or
Christine Greany of The Consumer Group, +1-858-523-1732, for Restoration Hardware,
Inc.
http://www.restorationhardware.com