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Restoration Hardware


came under pressure after reporting a wider-than-expected third-quarter loss because of advertising and distribution expenses.

The company lost $3.1 million, or 9 cents a share, compared with a loss of $2.9 million, or 9 cents a share, last year. Revenue rose 23% from a year ago to $118.2 million, reflecting an 8.7% rise in same-store sales. Analysts had been expecting a loss of 5 cents a share in the latest quarter.

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"Although pleased with our overall sales performance and product margin expansion in the third quarter, we experienced higher-than-anticipated advertising, distribution and Sarbanes-Oxley Section 404 compliance costs, which resulted in flat earnings per share for the quarter compared to last year," Restoration Hardware said. Those expenses widened the loss by 5 cents to 6 cents a share, it added.

The stock fell as much as 14% after hours Thursday from its 4 p.m. EST close of $6.31, which was up 10% from Wednesday.