Luxury home furnishing chain
warned that its fourth-quarter financial results will fall well below plan, citing weaker-than-expected holiday sales.
The Corte Madera, Calif.-based retailer said it expects to post a net profit of 25 cents to 30 cents a share, down from previous guidance of 41 cents to 42 cents. Wall Street analysts were expecting the company to earn 40 cents a share, according to Thomson Financial/First Call. In the year-ago period, the company recorded a loss of $1.56 a share.
Restoration is projecting sales at stores open at least a year to grow a more modest 2% to 4% in the fourth quarter, compared with its initial target of high single digit to low double digit percentage growth. Same-store sales for the holiday shopping season are expected to rise 1% to 2%, as opposed to the initial forecast of mid- to high single digit growth. Back in December, the company delayed the filing of its quarterly report in order to correct accounting irregularities. The errors will have no effect on earnings for the current fiscal year, the company said.
The company's shares were down $1.20, or 24%, at $3.80 in recent trading on