Restoration Hardware announces follow-on offering

Associated Press

CORTE MADERA, Calif. (AP) -- A limited number of shareholders at Restoration Hardware will participate in a follow-on offering of 7.5 million shares of its common stock.

The home products retailer will not be selling any shares in the offering and won't receive any proceeds from it.

The selling stockholders are giving the underwriters the option to buy up to an additional 1.1 million shares.

Restoration Hardware raised its fiscal first-quarter adjusted earnings and revenue forecasts Friday thanks to lean inventory levels and popular items.

The Corte Madera, Calif., company is several years into a turnaround. Restoration Hardware was losing money when it was bought by a private equity firm in in 2008. It has since redesigned stores, revamped its product line and focused on a higher-end market.

Restoration Hardware Holdings Inc. last month reported a fourth-quarter loss due to costs related to its initial public offering. Adjusted results beat analyst expectations.