Restoration Hardware Reports Loss

Shares of Restoration Hardware Inc. fell 8.3% on Thursday after the retailer reported a quarterly loss due to special charges and said it will restate results for seven previous quarters.

The Corte Madera, Calif.-based company postponed release of its results Wednesday by one day and announced plans to restate earlier results to reflect a change in the way it accounts for some revenue.

Its shares dropped as much as $1.80, or 15%, in early Nasdaq trading before recovering somewhat to close off 99 cents at $11.01.

Restoration Hardware said it now will record revenue from furniture and other large items shipped directly to customers when the delivery is received, rather than when the items leave the distribution center. Retailers have recorded revenue at shipment rather than delivery as a normal course of doing business for years.

The move is “not immaterial, but not a huge deal,” Chief Financial Officer Kevin Shahan said.

The restatement will not affect cash, receivables, accounts payable or debt, the company said.

The effect of the change in revenue from amounts previously reported should not exceed $5 million in any quarter or $3.5million for fiscal 2001, when the company generated sales of $367million.

For the fiscal fourth quarter ended Feb. 3, Restoration Hardware said it had a loss of $12.8 million, or 53 cents a share, after charges of $17.8 million for depreciation, write-downs of certain merchandise and tax allowance.