Restoration Hardware Shakes Off the Rust

Nowadays you'd expect investors to head for the exits after a multiquarter earnings restatement. But Restoration Hardware(RSTO Quote) bulls were saying Thursday that the upscale home decor chain's turnaround story is stronger than ever.

Shares were off just 3% Thursday afternoon after the company laid out plans to restate earnings for 2000 and the first three quarters of 2001. The company said the restatement came after a Securities and Exchange Commission review of how the company booked revenue from the sale of furniture. Restoration will now book sales at the time of delivery rather than at the time of shipment.

But everyone from the company on down seemed prepared to essentially ignore the news of the SEC-inspired accounting change. On a conference call, executives focused on solid sales from the company's new private-label linens business and noted that Restoration wasn't forced to resort to aggressive markdowns in January, as it did a year ago. ...