Restoration Hardware Restored

Shares surge 12% after a strong forecast.
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Restoration Hardware (RSTO) shares jumped 12% on strong third-quarter sales and upward guidance.

The Corte Madera, Calif., home décor retailer posted a net loss of 15 cents a share for the quarter ended Oct. 28. That compares with an 11-cent loss in the year-ago period. Analysts were looking for a loss of 16 cents.

Total sales for the quarter were $157 million, compared with $128.4 million last year. Analysts had expected $151 million in revenue. So-called same store sales increased 3.9%.

"We are pleased to report another quarter of solid progress," CEO Gary Friedman said in a press release Tuesday. "Total revenues increased 22%, reflecting our ability to gain market share and improve profitability, despite a difficult home furnishings environment," he continued in the statement

With an extra week in the fourth-quarter books, Restoration Hardware sees sales growing about 26% over the 13-week quarter a year ago. That guidance calls for sales of about $241 million for the quarter ending in January. Analysts were looking for sales of $229 million.

Restoration Hardware shares rose 98 cents to $9.20 in post-close trading Tuesday.