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CORTE MADERA, CA-Restoration Hardware posted its first profit outside of the fourth quarter during its second quarter, which ended on July 29. Income from operations came in at $2.1 million compared to a loss of $3.2 million during the same year-ago period.

The profit was boosted by a jump in sales. Year over year, same-store sales increased 4.3%, on top of a net revenue increase of 24%, to $179.3 million. Product margin increases and a strong customer response to products were given credit by management for the increases.

Additionally, Restoration Hardware is launching a new brand called Brocade Home, which will sell home furnishings geared toward women. The concept will eventually be launched on a “multi-channel retail platform,” says Gary Friedman, the company’s president, chief executive officer and chairman. He did not give details during a Q2 conference call on any store rollout plans but said that the brand’s Website is up and running. Lisa Versacio, a former Williams-Sonoma executive who launched that company’s West Elm chain, is heading the effort.

During the quarter the company opened one store, in Wisconsin, and now operates a total of 103 units.

For both the third quarter and the remainder of the year, executives are forecasting a mid-single-digit same-store sales increase. A loss of between $3 million and $5.5 million is predicted for the third quarter.

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