RH SEC 10-Q Report

RH, a leading luxury home furnishings retailer, has released its latest Form 10-Q report, showcasing robust financial and operational performance for the recent quarter. The report highlights significant improvements in key financial metrics and outlines the company's strategic initiatives aimed at driving long-term growth and market expansion.

Financial Highlights

RH reported strong financial results for the quarter, reflecting its effective cost management and strategic growth initiatives:

• Net Revenues: $813.952 million, up from $726.960 million in the prior year period, driven by new product introductions and expanded market presence.
• Gross Profit: $355.333 million, with a gross margin of 43.7%, slightly up from 43.5% in the prior year period, indicating improved cost management.
• Operating Income: $55.911 million, a slight increase from $54.663 million in the prior year period, highlighting effective control over operating expenses.
• Net Income: $8.039 million, a significant improvement from a net loss of $3.625 million in the prior year period, attributed to higher revenues and better cost efficiency.
• Basic Net Income Per Share: $0.43, compared to a loss of $0.20 per share in the prior year period, reflecting the company's return to profitability.
• Diluted Net Income Per Share: $0.40, compared to a loss of $0.20 per share in the prior year period, indicating improved financial performance and shareholder value.

Business Highlights

RH's operational performance underscores its strategic focus on product and market expansion:

• Revenue Segments: The RH Segment generated $764.998 million in net revenues, while the Waterworks segment contributed $48.954 million, highlighting the company's diverse product offerings across different market segments.
• Geographical Performance: The company operates 64 RH retail locations in North America and 5 in Europe, indicating a strong presence in these regions. The recent openings in Europe, including RH England, RH Munich, RH Düsseldorf, RH Brussels, and RH Madrid, mark the beginning of the company's global expansion strategy.
• Sales Units: The company operates a total of 69 RH retail locations, 42 outlets, 1 Guesthouse, and 14 Waterworks Showrooms, showcasing its extensive retail footprint.
• New Product Launches: RH has introduced a substantial number of new furniture and upholstery collections across RH Interiors, RH Modern, RH Outdoor, RH Baby & Child, and RH TEEN, reflecting a significant expansion in its product offerings.
• Future Outlook: The company is focused on several strategic initiatives, including product elevation, gallery transformation, brand elevation, global expansion, and digital reimagination, which are expected to drive long-term growth and enhance its market position.

SEC Filing: RH [ RH ] - 10-Q - Jun. 12, 2025