UPDATE 1-Restoration Hardware's sales, profit estimates disappoint
(Adds details; updates shares)
Feb 24 (Reuters) - Luxury home furnishings retailer Restoration Hardware Holdings Inc estimated fourth-quarter revenue and profit well below analysts' estimates, hurt by shipping delays, weak demand in certain regions and higher discounting.
The company's shares were down 19 percent at $42 after the bell, their lowest since May 10, 2013.
Rival Williams-Sonoma Inc's shares fell 7.1 percent to $53.85 in extended trading on Wednesday.
Restoration Hardware said increased volatility in the U.S. stock markets, especially in January, resulted in lower sales to its high-end customers, despite more promotions.
The Corte Madera, California-based company, which sells furniture, textiles, bathware and decor, said weak demand in markets under pressure from low oil prices, such as Texas and Canada, also hit revenue.
Shipping delays of its new product line, RH Modern, due to production issues at certain vendors also dragged down revenue, the company said, adding the vendors are not expected to catch up until at least the third quarter.
Restoration Hardware said it expects net income to decline to $33.8 million, or 80 cents per share, in the three months ended Jan. 30, from $42.5 million, or $1.02 per share, a year earlier.
Excluding items, the company estimated earnings of 99 cents per share. Continued...