Restoration Hardware (RSTO) Numbers Fall Apart, Pulls Guidance

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For the quarter ending November 3, Restoration Hardware (RSTO) announced net revenue increased 10.6 percent to $173.7 million compared to $157.1 million in the third quarter of 2006. Loss from operations for the third quarter of 2007 was $12.9 million, inclusive of $1.4 million related to costs associated with the Merger Agreement between the Company and certain affiliates of Catterton Partners. Loss from operations in the third quarter of 2006 was $3.7 million.

RSTO said due to uncertainty regarding the holiday outlook as well as the pending Merger Agreement and go shop process, prior guidance is withdrawn and the company will not be providing guidance regarding fourth quarter and full year 2007 financial results.

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Douglas A. McIntyre

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