This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Restoration Hardware Plunges as Co-CEO Departs

NEW YORK (TheStreet) - Shares of Restoration Hardware (RH - Get Report) plunged more than 12% in after-hours trading after the high-end home furnishings retailer announced the surprise departure of co-CEO Carlos Alberini as third-quarter comp sales missed expectations.

Alberini, 58, who has been in Restoration Hardware's C-suite since 2010, has accepted an offer to become chairman and CEO of Lucky Brand, which has been acquired by Leonard Green & Partners from Fifth & Pacific (FNP). The deal is expected to close next year.

Alberini will remain on at Restoration Hardware until Jan. 31, continuing to serve as a member of the board of directors and remain a significant shareholder in the company. Alberini currently holds a 3.2% stake in Restoration Hardware, according to Bloomberg data.

"On behalf of myself, the board and the entire RH team, I want to express our deepest thanks to Carlos for the numerous contributions he has made as Co-Chief Executive Officer," Gary Friedman, chairman and co-CEO said in a statement. "His leadership has been invaluable, and we are delighted with his continuing service as a member of our Board of Directors."

Must Read: November Retail Sales Top Expectations, No Thanks to Black Friday (Update 1)

"We are developing a transition plan and will initiate a search for Carlos' replacement shortly," Friedman added.

Shares were dropping 12.4% to $57.20 in post-markets trading, despite the Corte Madera, Calif.-based company exceeding expectations for its third quarter results and raising guidance for its fiscal year.

Restoration Hardware said adjusted profit rose 389% to $13 million, or 32 cents a share. The company reported GAAP net income of $9.5 million, or 23 cents a share, for the period. Analysts, according to Thomson Reuters, were expecting earnings of 28 cents a share.

Revenue rose 39% to $395.8 million, beating expectations of $391 million. Comparable store sales rose 29% in the quarter, below the mid-30's expectations from Wall Street.

The company expects full year adjusted earnings per share to be in the range of $1.71 to $1.74. Analysts had expected $1.71 a share.

Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
RH $42.87 -2.70%
AAPL $93.43 -1.50%
FB $116.35 -0.33%
GOOG $692.77 0.25%
TSLA $239.45 -3.30%


Chart of I:DJI
DOW 17,714.61 -116.15 -0.65%
S&P 500 2,060.71 -15.10 -0.73%
NASDAQ 4,767.4390 -37.8520 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs