Restoration Hardware co-CEO resigns
(Associated Press Via Acquire Media NewsEdge) Restoration Hardware Holdings Inc. said Thursday that its co-CEO Carlos Alberini is resigning to take over as CEO and chairman at clothing company Lucky Brand.
The luxury furniture and housewares company said that Alberni will step down Jan. 31. He will continue to serve as a member of the board and remain a significant shareholder in the company.
Alberni has served as a director of the Corte Madera, Calif.-based company since 2010. He was appointed CEO in 2012 and became co-CEO with Gary Friedman in July of 2013. He holds nearly 1.3 million shares, a roughly 3 percent stake, according to FactSet.
Alberini said the move will fulfill his lifelong dream to run and build a company. He will take over at Lucky Brand pending its acquisition by Leonard Green & Partners L.P.
Restoration Hardware said it will initiate a search for Alberni's replacement soon.
Its shares fell nearly 12 percent to $57.56 in after-hours trading following the announcement
The company, which went public of November of 2012, announced the management change as it reported a sharp jump in its fiscal third-quarter profit and raised its full-year forecast.
Restoration Hardware earned $9.5 million, or 23 cents per share, for the quarter that ended Nov. 2. That is compared net income of $1.7 million last year for its quarter that ended Oct. 27. On an adjusted basis, it earned 32 cents per share this year versus 7 cents per share last year.
Revenue jumped 39 percent to $395.8 million.
The quarter's results beat market expectations. Analysts polled by FactSet were anticipating earnings of 28 cents per share on revenue of $389.7 million.
The company said it expects adjusted earnings of 82 to 85 cents per share for its fourth quarter on revenue of $490 million to $500 million. Analysts had forecast earnings of 84 cents per share on revenue of $496.1 million.
For the full year, Restoration Hardware said it expects adjusted earnings between $1.71 and $1.74 on revenue between $1.57 billion and $1.58 billion. That exceeds market expectations of earnings of $1.69 per share on revenue of $1.57 billion.
Restoration Hardware had 70 retail stores as of the end of the quarter.
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