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Restoration Hardware Inc. has reported that a significant share of its revenues have shifted from retail to direct marketing sales.

The company reported direct marketing sales for the third quarter that ended Nov. 3 were $97.2 million, an increase of $16.6 million compared to the same quarter last year.

Restoration Hardware generated 56% of total revenues from its catalog in the third quarter this year, compared to 36% during third quarter of 2006.

The Corte Madera, CA-based firm attributed the shift to greater direct sales to increased catalog circulation and adding more pages to catalogs.

It reported $76.5 million in revenues for its stores in the third quarter.