Restoration Hardware Holdings announced record financial results for the second quarter ended August 1, 2015. Net revenues increased 17% to $506.9 million from $433.8 million in Q2 2014.
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Comparable brand revenue growth, which includes direct, was 16% in the second quarter of fiscal 2015 on top of 13% for the same period last year.
Stores revenues increased 21% to $268.5 million in the second quarter of fiscal 2015. This growth is on top of a 9% increase in stores revenues in the second quarter of fiscal 2014. Direct revenues increased 13% to $238.5 million in the second quarter of fiscal 2015.
This growth is on top of a 19% increase in direct revenues in the second quarter of fiscal 2014. Direct revenues during the second quarter of fiscal 2015 represented 47% of total net revenues.
As of August 1, 2015, the company operated a total of 67 retail galleries, consisting of 57 legacy Galleries, 6 larger format Design Galleries, 1 next generation Design Gallery, and 3 Baby & Child Galleries, as well as 15 outlet stores, throughout the United States and Canada.
This compares to a total of 68 retail galleries, consisting of 59 legacy Galleries, 6 larger format Design Galleries and 3 Baby & Child Galleries, as well as 17 outlet stores, as of August 2, 2014.
Adjusted operating income in the second quarter of fiscal 2015 increased 26% to $61.9 million compared to $48.9 million in the second quarter of fiscal 2014. Adjusted operating margin in the second quarter of fiscal 2015 increased 90 basis points to 12.2% from 11.3% for the same period last year.
Including the impact of non-recurring and other items in the second quarter of fiscal 2015, GAAP operating income was $56.4 million compared to $48.9 million for the same period last year and GAAP operating margin was 11.1% compared to 11.3% for the same period last year.
Adjusted net income in the second quarter of fiscal 2015 increased 30% to $36.0 million from $27.7 million in the second quarter of fiscal 2014. Including the impact of non-recurring and other items, GAAP net income for the second quarter of fiscal 2015 was $29.9 million compared to $27.3 million for the same period last year.
Adjusted diluted EPS for the second quarter of fiscal 2015 increased 27% to $0.85 from $0.67 for the same period last year. Including the impact of non-recurring and other items, GAAP diluted EPS for the second quarter of fiscal 2015 was $0.71 compared to $0.66 for the same period last year. ■