Restoration Hardware Shares Tank After Surprise Quarterly Loss

Shares of Restoration Hardware Holdings Inc. fell more than 14% late Wednesday after the retailer unexpectedly swung to a first-quarter loss and lowered its outlook for 2016, casting doubts about the luxury-goods market and citing potential product delays, among other issues. Restoration Hardware said it lost $2.1 million, or 5 cents a share, in the first quarter, versus a net income of $9.8 million, or 23 cents a share, in the year-ago period. Sales rose to $455.5 million in the quarter, from $422.4 million a year ago. Analysts polled by FactSet had expected the retailer to report earnings of 5 cents a share in the quarter on sales of $452 million. Restoration Hardware expects adjusted earnings between $1.60 a share and $1.80 a share for the year, a reduction of 90 cents to $1 a share, due to what it called "short-term" difficulties. For the second quarter, it forecast earnings between 28 cents and 33 cents a share on revenue in the range of $505 million to $520 million. The analysts surveyed by FactSet had expected adjusted earnings of 79 cents a share on sales of $532 million for current quarter. Restoration Hardware shares ended Wednesday up 2%.