Careful Before You Lounge Here

After the close Wednesday, Restoration Hardware (RH) reported third-quarter earnings of $0.07 per share on revenue of $284.2 million. Revenue rose 22.2% year over year, in line with previous estimates. Same-store sales grew 29% on top of a 36% comps figure last year. It earned $1.7 million in the quarter, compared with a loss of $4.8 million last year. Since Restoration's public offering Nov. 2, the stock has risen approximately 14%.

Restoration Hardware is no stranger to being a publically held company. The high-end furniture retailer had been public until mid-2008, when a pair of private-equity firms had acquired it. The company ran into trouble because it expanded too quickly and found lots of ways to lose tons of money. The timing here turned out to be fortunate, because the company ultimately avoided reporting all sorts of nasty financial results during great recession. For example, between 2008 and 2010, sales fell 13%. The last full year the company was public, it managed to lose $51.9 million on sales of $722.2 million....265 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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