More bad news for a company that, around this time last year, had stock that was making a steady, healthy rise, only to unexpectedly take a nose-dive, and hasn’t been able to recover anything since, Design Within Reach just released the news that their CFO, Ken La Honta, is leaving the company. This writer doesn’t know a ton about the market, or money for that matter, but it’s been interesting following the company, particularly after leafing through their catalog when it arrives. Whenever we’d get it, we’d wonder, “Their stuff is nice, but who is paying $1,000 for a deck that’s basically just a handful of two-by-fours?” But we always suspected that we were the only ones questioning it, because, in 2004, the company was on fire, constantly raking in the money, impressing the heck out of their investors. And in 2005, just weeks before they started tanking, there was this on SmartMoney.com:
Analysts expect the company to boost its profits by a whopping 30% annually over the next five years…Design Within Reach won’t supplant your neighborhood Ikea anytime soon. But unlike Ikea, it looks plenty likely to furnish stock profits for awhile.
Yet, about two weeks later, they’ve started a trend of losing millions every quarter and floundering about in utter despair. Maybe the irony of their name finally caught up to them — if they’d been more “reachable” maybe they wouldn’t be in all this trouble.