Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 4, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35720 (Exact name of registrant as specified in its charter) Delaware 45-3052669 (State or other jurisdiction of ...

Net Revenues of $727M, GAAP Operating Margin of 7.5%, Adjusted Operating Margin of 6.5% Please see the tables below for reconciliations of all GAAP to non-GAAP measures referenced in this press release. There are no adjustments to GAAP net revenues or GAAP gross margin presented in this press release. TO OUR PEOPLE, PARTNERS AND SHAREHOLDERS, FIRST QUARTER 2024 FINANCIAL RESULTS AND SHAREHOLDER LETTER Exhibit 99.2 A LETTER FROM OUR CHAIRMAN AND CEO RH REPORTS FIRST QUARTER RESULTS FIRST QUARTER 2024 HIGHLIG ...

getty Earnings Preview Click on the chart to join MarketSurge The company is expected to report a loss of ($0.08)/share on $724.67 million in revenue. Meanwhile, the socalled Whisper number is a loss of ($0.01)/share. The Whisper number is the Street's unofficial view on earnings. Looking back the company earned 19.90 in 2023 and $26.12 in 2022. In 2024, the company is expected to earning $6.82/share which is a big drop from the last few years. In 2025, earnings are expected to grow to $8.75/share and then ...

In the last reported quarter, this leading luxury home furnishings retailer's earnings and revenues lagged the Zacks Consensus Estimate by 57.9% and 5%, respectively. Also, the earnings and revenues decreased 75% and 4.4%, respectively, from the year-ago level. The company beat earnings expectations in 22 of the last 26 quarters, missed on three occasions, and met once. For the quarter to be reported, the Zacks Consensus Estimate has narrowed to a loss of 8 cents per share from 11 cents over the last seven ...

Analysts on Wall Street project that RH (RH) will announce quarterly loss of $0.08 per share in its forthcoming report, representing a decline of 103.6% year over year. Revenues are projected to reach $724.67 million, declining 2% from the same quarter last year. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently ...

Analysts and investors alike will be keeping a close eye on the performance of RH in its upcoming earnings disclosure. The company's earnings report is set to go public on June 13, 2024. It is anticipated that the company will report an EPS of -$0.11, marking a 104.98% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $724.67 million, indicating a 1.96% downward movement from the same quarter last year. Empirical research indicat ...

The market expects RH (RH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the sto ...

Product Development and Expansion - The company plans to introduce new product lines including RH Couture, RH Bespoke, and RH Color over the next few years[29] - The company’s product development platform is designed to reduce product costs while introducing more new products with each collection[37] - The company opened RH England, The Gallery at the Historic Aynho Park, in June 2023, marking the beginning of its global expansion beyond North America[31] - The company plans to open RH Brussels, The Gallery on Boulevard de Waterloo, in March 2024[33] - The company plans to open additional Bespoke Design Galleries in top metropolitan markets, including RH New Jersey, The Gallery at the Historic Alnwick Hall, and RH Paris, The Gallery on the Champs-Élysées, following the successful opening of RH England in June 2023[46] - The company has secured a new Design Studio location in Palm Desert, California, with plans to open in the second half of 2024, following the success of existing locations generating annual revenues of $5 to $20 million in 2,000 to 5,000 square feet[49] - The company opened RH Brussels in March 2024 and plans to open RH Madrid in fiscal 2024, with ongoing construction in London, Paris, and Milan, and local approvals for RH Sydney in Double Bay[51] - RH plans to build a projected $20 to $25 billion global brand through international expansion, with new locations in the UK, Europe, and Australia, including RH Munich, RH Düsseldorf, and RH Brussels[267] Revenue and Financial Performance - The company expects to generate $5 to $6 billion in annual revenue by opening new Design Galleries in major North American markets[30] - RH's net revenues for fiscal 2023 were $3,029,126 thousand, with a gross profit of $1,389,019 thousand (45.9% of net revenues)[295] - RH's selling, general, and administrative expenses increased to $1,022,948 thousand (33.8% of net revenues) in fiscal 2023, up from $928,230 thousand (24.7%) in fiscal 2022[295] - RH's net income for fiscal 2023 was $127,561 thousand (4.2% of net revenues), a significant decrease from $528,642 thousand (14.7%) in fiscal 2022[295] - RH's cost of goods sold increased to $1,640,107 thousand (54.1% of net revenues) in fiscal 2023, compared to $1,778,492 thousand (49.5%) in fiscal 2022[295] - RH's interest expense—net rose to $198,296 thousand (6.6% of net revenues) in fiscal 2023, up from $113,210 thousand (3.2%) in fiscal 2022[295] - RH's income tax expense (benefit) for fiscal 2023 was $28,261 thousand (0.9% of net revenues), compared to a benefit of $91,358 thousand (-2.6%) in fiscal 2022[295] - Adjusted operating income for the year ended February 3, 2024 was $393.8 million, compared to $789.8 million in 2023 and $962.6 million in 2022[300] - Net income for the year ended February 3, 2024 was $127.6 million, a significant decrease from $528.6 million in 2023 and $688.5 million in 2022[300] - Adjusted net income for the year ended February 3, 2024 was $147.4 million, compared to $528.5 million in 2023 and $766.5 million in 2022[305] - Consolidated net revenues decreased by $561 million (15.6%) to $3,029 million in fiscal 2023 compared to $3,590 million in fiscal 2022[320] - RH Segment net revenues decreased by $563 million (16.6%) to $2,836 million in fiscal 2023 compared to $3,399 million in fiscal 2022[321] - Waterworks net revenues increased by $1.7 million (0.9%) to $194 million in fiscal 2023 compared to $192 million in fiscal 2022[323] - Adjusted EBITDA for fiscal 2023 was $550.9 million, compared to $930.5 million in fiscal 2022 and $1,087.3 million in fiscal 2021[312] - Outlet sales decreased by $15 million to $245 million in fiscal 2023 compared to $260 million in fiscal 2022[322] Retail and Distribution Operations - The company operates 31 Design Galleries with an average leased selling square footage of 33,400 square feet as of February 3, 2024[39] - The company has integrated RH Hospitality experiences in 16 Design Galleries and one RH Guesthouse[40] - The company’s retail locations include 70 Galleries and 14 Waterworks Showrooms, totaling 84 retail locations as of February 3, 2024[39] - The company operates 42 outlet stores as of February 3, 2024, including one in the United Kingdom, serving as a key part of its reverse logistics platform[66] - The company manages distribution through three furniture fulfillment centers and one small-parcel fulfillment center in the U.S., with one third-party distribution center in Europe[72] - The company's total leased selling square footage increased to 1,378 thousand square feet as of February 3, 2024, up from 1,286 thousand square feet at the end of the previous year[52] Membership and Customer Engagement - The RH Members Program drove approximately 97% of sales in the core RH business during fiscal 2023, with approximately 281,000 members at year-end[70] - The company launched The World of RH, an online portal, in spring 2022 to enhance the digital customer experience[34] Capital Expenditures and Financing - Capital expenditures for fiscal 2023 were $269.4 million, compared to $173.6 million in fiscal 2022 and $185.4 million in fiscal 2021[322] - The company incurred $198.3 million in net interest expense in fiscal 2023, compared to $113.2 million in fiscal 2022 and $64.9 million in fiscal 2021[312] - The company received $2.4 million in landlord tenant allowances under finance leases in fiscal 2023, compared to $4.7 million in fiscal 2022[317] - The company has $42 million in aggregate principal amount of convertible notes outstanding as of February 3, 2024[154] - The company completed a $2.5 billion term loan financing with a maturity date of October 20, 2028[155] - The company's adjusted capital expenditures for fiscal 2023 were $295 million, net of $2.5 million in landlord tenant allowances[158] - The company raised $2.5 billion in Term Debt and may incur additional debt in the future, which could increase financial risks[159] - The company faces significant capital requirements for business operations, real estate strategy, international expansion, and new business development[158] Cybersecurity and Data Privacy - The company's information systems are vulnerable to cybersecurity threats, with increasing human and financial capital required to address these risks[168] - The company is subject to payment card industry data security standards and could face fines, higher transaction fees, or loss of payment processing capabilities if systems are breached[176] - The company's operations are dependent on third-party information technology systems, which could be compromised by cybersecurity attacks[169] - The company is subject to evolving privacy and data security regulations, such as the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act[171] - Compliance with GDPR and similar regulations increases operational costs and risks of fines, litigation, and reputational damage if data protection requirements are not met[175] - Potential cybersecurity breaches could lead to data loss, fines, litigation, and operational disruptions, negatively impacting the company's reputation and business[175] Legal and Regulatory Risks - The company faces ongoing legal proceedings, including class action lawsuits and regulatory investigations, which could result in unexpected expenses and liability[185] - Intellectual property claims, particularly in new markets, could be costly and time-consuming to defend, potentially harming the company's competitive position[186] - Changes in tax laws, including the implementation of Pillar II's global minimum tax rate of 15%, could increase the company's tax obligations and affect cash flows[190] - Regulatory changes in labor, environmental, and consumer protection laws could increase compliance costs and impact business operations[188] - The company's products are subject to recalls and regulatory actions, with potential reputational harm and financial losses if recalls occur[178] Workforce and Leadership - The company's total team members decreased to 5,960 as of February 3, 2024, from 6,180 in the previous year, with retail and outlet team members increasing to 2,210 from 2,090[81] - The company's business depends on retaining key personnel, including the Chairman and CEO, Gary Friedman, and faces risks from leadership changes[161] - Labor organizing activities could lead to work stoppages, increased labor costs, and disruptions in operations[216] Market and Economic Conditions - The company has experienced a slowdown in demand due to macroeconomic conditions, including higher interest rates and inflation, but expects these factors to moderate in the coming quarters[262] - The company's stock price is subject to volatility due to external factors such as consumer spending, market conditions, and global economic changes[196] - Future issuances of common stock for financings or acquisitions could result in dilution and negatively impact the stock price[197] - Stock market volatility and potential securities class action litigation could result in substantial costs and divert senior leadership attention[198] - Anti-takeover provisions in the company's charter documents and Delaware law may discourage or delay acquisition attempts[199] - ESG considerations may impose additional costs and expose the company to new risks, particularly as it expands into new geographic markets[215] - The COVID-19 pandemic has impacted the company's supply chain and business climate, with potential future crises posing similar risks[220] - Facility disruptions or shutdowns could result in inventory shortages, higher costs, and delays in order processing and shipping[221] - Fluctuations in tax obligations and effective tax rate may result in volatility of the company's results of operations[217] Asset Management and Impairments - Asset impairments in fiscal 2023 included $2.2 million related to Design Galleries refresh and $1.3 million for a loan receivable[302] - Impairment charges on intangible assets, goodwill, and long-lived assets could adversely affect the company's financial results[194] - Total assets include intangible assets, goodwill, trademarks, patents, and substantial property and equipment, subject to annual impairment evaluations[195] Share Repurchases and Financial Adjustments - The company repurchased 3.9 million shares of common stock in fiscal 2023 at an average price of $321 per share, totaling approximately $1.3 billion[210] - Legal settlements in fiscal 2023 resulted in an $8.5 million adjustment to operating income[300] - Reorganization related costs in fiscal 2023 amounted to $7.6 million, primarily for severance and payroll taxes[300] - The company's share repurchase program had $201 million remaining and available at the end of fiscal 2023[210] - Non-cash compensation adjustments in fiscal 2023 totaled $9.6 million, down from $18.1 million in 2022[300] - Recall accrual adjustments decreased selling, general and administrative expenses by $1.6 million in fiscal 2023[302] Strategic Initiatives and Hospitality Expansion - RH's strategy includes expanding into the $200 billion North American hotel industry with RH Guesthouses, starting with the New York location in September 2022 and a second in Aspen under construction[266] - RH England, The Gallery at the Historic Aynho Park, opened in June 2023, marking the beginning of RH's global expansion beyond North America[266] Supply Chain and Sourcing - In fiscal 2023, 66% of RH's products were sourced from Asia, with 30% from Vietnam, 22% from China, and the remainder from India, Indonesia, and other regions[275] Acquisitions and Growth Risks - Acquisitions may not yield expected benefits, and failure to identify suitable targets could hinder growth[192]

RH (NYSE:RH) Q4 2023 Earnings Conference Call March 27, 2024 5:00 PM ET Corporate Participants Allison Malkin - ICR Gary Friedman - Chairman and Chief Executive Officer Jack Preston - Chief Financial Officer Jarrett Stuhl - Chief Real Estate & Development Office Conference Call Participants Simeon Guttman - Morgan Stanley Steven Forbes - Guggenheim Securities Curtis Nagle - Bank of America Christopher Horvers - JPMorgan Max Rakhlenko - TD Cowen Seth Basham - Wedbush Securities Jonathan Matuszewski - Jefferi ...

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D investment increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 95% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 10% increase in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a company-wide recycling program, diverting 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Implemented a new whistleblower policy to ensure ethical practices across the organization [17]. - Conducted annual audits, resulting in a clean financial report with no material misstatements [18].