<SEC-DOCUMENT>0001193125-17-360552.txt : 20180326
<SEC-HEADER>0001193125-17-360552.hdr.sgml : 20180326
<ACCEPTANCE-DATETIME>20171204214432
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-17-360552
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20171204

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RH
		CENTRAL INDEX KEY:			0001528849
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-FURNITURE STORES [5712]
		IRS NUMBER:				453052669
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		15 KOCH ROAD
		STREET 2:		SUITE K
		CITY:			CORTE MADERA
		STATE:			CA
		ZIP:			94925
		BUSINESS PHONE:		415-924-1005

	MAIL ADDRESS:	
		STREET 1:		15 KOCH ROAD
		STREET 2:		SUITE K
		CITY:			CORTE MADERA
		STATE:			CA
		ZIP:			94925

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Restoration Hardware Holdings Inc
		DATE OF NAME CHANGE:	20110830
</SEC-HEADER>
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<TYPE>CORRESP
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<TD VALIGN="bottom">15 Koch Road</TD></TR>


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<TD VALIGN="bottom">Corte Madera, California 94925</TD></TR>
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<TD VALIGN="bottom">T. 415.924.1005 F. 415.927.9133</TD></TR>
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
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<TD VALIGN="bottom">RestorationHardware.com</TD></TR>
</TABLE> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="margin-top:0pt;margin-bottom:0pt">


<IMG SRC="g509247img11.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>FOIA C<SMALL>ONFIDENTIAL</SMALL> T<SMALL>REATMENT</SMALL> R<SMALL>EQUESTED</SMALL>
P<SMALL>URSUANT</SMALL> <SMALL>TO</SMALL> 17 C.F.R. &#167; 200.83 </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December&nbsp;4, 2017 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>VIA EDGAR AND OVERNIGHT DELIVERY </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Accounting Branch Chief </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549-7010 </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:<I></I></TD>
<TD ALIGN="left" VALIGN="top"><I>RH</I> </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended
January&nbsp;28, 2017 </I></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the quarterly period ended April&nbsp;29, 2017 </I></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>Response Dated October&nbsp;13, 2017 </I></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-35720</FONT> </I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms. Thompson: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On behalf of RH (the &#147;Company&#148;),
this letter responds to your letter, dated November&nbsp;8, 2017 (the &#147;Comment Letter&#148;), regarding the above-referenced filings. Each of your comments is set forth below, followed by the corresponding response. For ease of reference, the
headings and numbered paragraphs below correspond to the headings and numbered comments in the Comment Letter. Each response of the Company is set forth in ordinary type beneath the corresponding comment of the Staff of the Division of Corporation
Finance (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;SEC&#148;) from the Comment Letter appearing in bold type. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.</B>
</TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year Ended January&nbsp;28, 2017
</U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Factors Affecting Our Results of Operations, page 38 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We have read your response to comment 1. Please address the following: </B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
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<TD ALIGN="left" VALIGN="top"><B>It appears from your response that there are three reasons why you believe the move to a membership model had a negative impact on the timing of your revenue recognition in fiscal 2016: you experienced a decline in
overall sales volumes; you experienced a lengthening of the time period between providing a quote for an item and the closing of the sale; and the membership fee revenue, which is intended to partially offset the higher discount received by members
as compared to the promotional discount offered in previous years, is recognized ratably over a one year period while the discount is recognized at the time of each sale. As all of these factors were not clear to us from the disclosures in your Form
<FONT STYLE="white-space:nowrap">10-K,</FONT> please revise your upcoming Form <FONT STYLE="white-space:nowrap">10-K</FONT> to address these factors more transparently when you analyze the decline in RH Segment net revenue from fiscal 2015 to fiscal
2016. </B></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The
Company acknowledges the Staff&#146;s comment and confirms that we will address the Staff&#146;s comment in&nbsp;our upcoming Form <FONT STYLE="white-space:nowrap">10-K,</FONT> as requested,&nbsp;in terms of providing more disclosure of the specific
factors affecting&nbsp;the decline in RH Segment net revenue from fiscal 2015 to fiscal 2016. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
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<TD ALIGN="left" VALIGN="top"><B>We note the longer selling cycle negatively impacted your revenues during the early period of adoption of the membership program. Tell us whether this longer selling cycle has continued to date and what impact it is
having on revenues. If applicable, explain how you considered disclosing this information to investors within your 2017 quarterly periodic reports and what efforts you are undertaking to remediate longer selling cycles under the new membership
model. </B></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We
respectfully advise the Staff that we continue to believe that the change to a membership model has increased the selling cycle for many of our customers. We believe that under our prior promotional model, customer decisions were often made in haste
and transactions closed more quickly due to a sense of urgency related to deadlines for discount and promotional programs which typically had an expiration date. </P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Although we believe that this shift to a longer selling cycle had a negative impact on sales
in the first year of adoption of the membership program in comparison to the old model in prior periods, we do not expect the impact to continue in future comparable time periods. In addition, we believe that the shift to a membership model has
positively impacted the financial results of our business. Specifically, we believe some of the other benefits include: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><U>Customer
experience has improved</U>. Our interior design professionals can now work with customers based on their timeline and project deadlines, as opposed to our prior promotional calendar. This may lead to larger overall sales transactions for individual
customer design projects. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><U>Lower cancellations and returns</U>. We believe the shift to a membership model has also resulted in
positive trends, including lower rates of cancelled orders and returns. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><U>Improved operational costs</U>. The volume of sales, orders
and shipments in our business under the prior promotional model was characterized by large spikes in customer orders based upon promotional events followed by lower orders and sales after the end of an event. This buying pattern also affected
numerous other aspects of our business including staffing and costs. We required enhanced staffing to service the increased number of customers during peak sales events. Likewise, significant fluctuations in sales had downstream implications for our
supply chain related to merchandise orders, manufacturing and production, shipment to our distribution centers and final delivery to our customers. All of these aspects of our operations are experiencing improved efficiencies as a result of the
membership model whereby sales are more evenly distributed throughout the year as opposed to the peaks and valleys of orders and sales under the prior model. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Finally, now that we have calendared the first full year operating under our membership model, some of the initial impacts of
the membership model to our business and results of operations will be different going forward. In some respects, we believe there was a <FONT STYLE="white-space:nowrap">one-time</FONT> shift in customer orders based on shifting from promotional
sales to membership-based sales. Once that shift occurred, a steady cadence of buying patterns has developed and, as a result, there is much less of an interim change in sales results in the second year of the membership program since the prior-year
and the current-year sales are both now membership-driven. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Because we are now in the second year of the membership
program, we do not believe that the longer selling cycle has resulted in any negative sales trends in the current year compared to the previous year. However, we will include additional disclosure in future filings to the extent that any sales
trends resulting from the membership program have a meaningful impact on our business. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
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<TD ALIGN="left" VALIGN="top"><B>We note you track the percentage of revenue that is generated from sales to RH Members. Please tell us the percentage of revenue generated from sales to RH Members and the percentage of revenue from sales to <FONT
STYLE="white-space:nowrap">non-members</FONT> during each of fiscal 2016 and the interim period ended July&nbsp;29, 2017. To the extent that you are experiencing different trends in revenue or gross profit from members and <FONT
STYLE="white-space:nowrap">non-</FONT> members, please tell us how you considered discussing and quantifying these trends in MD&amp;A. We remind you that your MD&amp;A disclosure should include a robust discussion of known trends or uncertainties
that you reasonably expect have had, or will have, a material impact on your sales.</B> </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully advise the Staff that we have been tracking the percentage of revenue that is generated from sales to RH Members since the
inception of the program. The RH Members program, including the discount rate and $100 annual fee, was designed to maximize potential enrollment based on prior customer behavior and transaction data. Specifically, we sought to ensure that the fee
was low enough relative to our average order values that almost all of our sales would fall under this program. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Sales to RH Members now
represent approximately 95% of our core RH business. Our core RH business does not include sales generated via Outlet, Contract or Waterworks, and does not include shipping income. Our core RH business represented approximately 65% of total net
revenues for the first half of fiscal 2017. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD></TD>
<TD></TD>
<TD></TD></TR>
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<TD VALIGN="bottom" COLSPAN="4" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Core RH Business - % of Membership
Revenue</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; width:49.90pt; font-size:8pt; font-family:Times New Roman"><B>Fiscal Quarter</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"><B>Percentage</B></TD>
<TD VALIGN="bottom">&nbsp;</TD></TR>


<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Q2 2016</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">86.5</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Q3 2016</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">91.4</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Q4 2016</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">90.3</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Q1 2017</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">94.2</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
<TR BGCOLOR="#cceeff" STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Q2 2017</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="right">95.4</TD>
<TD NOWRAP VALIGN="bottom">%&nbsp;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully advise the Staff that because the percentage of sales to RH Members is the vast majority of
our core RH business and is performing as expected, we do not spend time analyzing the 5% that represents sales to <FONT STYLE="white-space:nowrap">non-members.</FONT> We also do not track the overall profitability of sales broken out by members and
<FONT STYLE="white-space:nowrap">non-members.</FONT> </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">However, we do analyze and assess the performance of our product categories. Some of our
smaller ticket businesses, such as textiles and d&eacute;cor items, have not performed as well as other larger ticket product categories under the RH Members program. We believe this is due to the fact that the $100 annual fee is too high relative
to the ticket value of these smaller items when making a single product purchase. Accordingly, we have begun to test certain promotions for specific categories to learn how the performance may be improved under our new model. While these smaller
promotional events or offers have provided an opportunity for management to learn more about how we might complement the RH Members program with other activities in the future, they are not material to our overall Company performance. As a result,
we do not believe that the performance in such product categories is at this time a known trend or uncertainty that we reasonably expect has had, or will have, a material impact on our sales. Nevertheless, in the event we do experience known trends
or uncertainties in our business related to the membership model in future periods that have a material impact on sales, we will include a discussion of such matters in connection with Item 303 disclosure pursuant to Regulation <FONT
STYLE="white-space:nowrap">S-K.</FONT> </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"><B>Please tell us why management separately tracks revenue generated from sales to RH Members and why this information would not be useful to an investor. It appears that the difference in discounts received by members
and <FONT STYLE="white-space:nowrap">non-members</FONT> could drive differences in sales volumes for these two types of customers, and that if different groups of customers are experiencing differing trends in prices paid or quantities purchased
this could be material to an investor&#146;s understanding of changes in your revenue. Refer to Item 303(a)(3)(ii) and (a)(3)(iii) of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> and SEC Release
<FONT STYLE="white-space:nowrap">No.&nbsp;33-8350.</FONT></B> </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">As discussed above, we have been tracking the percentage of revenue that is generated from sales to RH Members since the inception of the
program in order to gauge the success of our program design. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully advise the Staff that because the percentage of sales to RH
Members is now the vast majority of our core RH business and is performing as expected, we do not spend time analyzing the 5% of the business that represents sales to <FONT STYLE="white-space:nowrap">non-members.</FONT> We also do not track the
overall profitability of sales broken out by members and <FONT STYLE="white-space:nowrap">non-members.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">However, we do believe that
the percentage of revenue generated by RH Members could be a meaningful metric for investors to better understand the composition of our sales to members and <FONT STYLE="white-space:nowrap">non-members.</FONT> Accordingly, we will include the
following disclosure in our Report on Form <FONT STYLE="white-space:nowrap">10-Q</FONT> to be filed for the quarterly period ended October&nbsp;28, 2017: &#147;As of October&nbsp;28, 2017 we had approximately 380,000 members which drove
approximately 95% of sales of our core RH business during the three months ended October&nbsp;28, 2017.&#148; </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>The comments made by management on the fiscal 2017 second quarter earnings call appear to indicate that you have <FONT STYLE="white-space:nowrap">re-implemented</FONT> the traditional promotional model for at least
part of your business where <FONT STYLE="white-space:nowrap">non-members</FONT> making smaller purchases may be reducing their purchases rather than buying a membership. It appears this was done to address a decline in
<FONT STYLE="white-space:nowrap">non-member</FONT> sales volume as you did not want to lose those sales. Please explain to us in more detail what necessitated this change and how you considered disclosing this information to your investors as part
of your analysis of results. As part of your response, tell us whether the decline in <FONT STYLE="white-space:nowrap">non-member</FONT> sales volume had a significant impact on your revenue and whether reinstituting promotions had a significant
impact on your revenue.</B> </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully advise the Staff that we are pleased with the performance of the RH Members program and that our goal is to maximize sales from
RH Members. However, as discussed above, some of our smaller ticket businesses, such as textiles and d&eacute;cor items, have not performed as well as other larger ticket product categories under the RH Members program. We believe this is due to the
fact that the $100 annual fee is too high relative to the ticket value of these smaller items when making a single product purchase. Accordingly, we have begun to implement certain more traditional promotions for these limited categories to ensure
that we are priced competitively during certain periods relative to other retailers. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">These smaller promotional events and offers have not
been significant to our overall Company performance. However, we will continue to monitor the impact of these promotional offers and other such test activities, and we will include additional disclosure and discussion in our future filings if they
become meaningful factors that we believe are significantly influencing our sales trends. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Fiscal 2016 Compared to Fiscal 2015 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Gross profit, page 44 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>2.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We have read your response to comment 2. For those factors that materially impacted your gross margin, please consider revising your future disclosure to indicate the relative significance of each material item by
quantifying its impact. Quantifying the impact of material factor(s) will also mitigate the risk of disclosing an inaccurate contribution order of factors. Alternatively, please consider disclosing to your investors in an appropriate location that
when you list several factors as contributing to a change in your results, those factors are listed in the order of magnitude, or otherwise providing more transparent qualitative indicators of the relative impact of each factor that you list.
</B></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company acknowledges the Staff&#146;s comment and confirms to the Staff that it will address the Staff&#146;s comment within the Management
Discussion and Analysis section in future filings. In particular, we expect to take one or more of the actions you suggest to make our future disclosures more transparent, including (i)&nbsp;by indicating the relative significance of each material
item by quantifying its impact to the extent that the Company is able to isolate the quantitative impact of distinct material factors that contribute to a change in gross margin, (ii)&nbsp;by disclosing in an appropriate location that when we list
several factors as contributing to a change in our results, those factors are listed in the order of magnitude, and/or (iii)&nbsp;by otherwise providing more transparent qualitative indicators of the relative impact of each factor that we list. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Impairment of Goodwill and Long-Lived Assets, page 58 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>3.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We note that your response to comment 5 addresses the level of information regularly reviewed by your CODM. As indicated in ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">350-20-35-34,</FONT></FONT></FONT> a reporting unit is determined by the level of discrete financial information that is available and regularly reviewed by segment management, as that term is defined in ASC <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">280-10-50-7.</FONT></FONT></FONT> Please provide us with your analysis under ASC 280 of whether your CODM also is the segment manager for each of your
operating segments or whether each operating segment has a segment manager who is directly accountable to and maintains regular contact with the CODM to discuss operating activities, financial results, forecasts, or plans for the segment. As part of
your response, please tell us the title and describe the role of each of the individuals who report to your CODM. </B></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:<B> </B>
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Our analysis included a review of the Company&#146;s internal documentation, discussions and review of the annual budgeting process, and
discussions with senior management. Through our analysis we concluded that it is the Company&#146;s Chairman and Chief Executive Officer (&#147;CEO&#148;) who is responsible for management of the Company and reports directly to the Board. The CEO is
responsible for all decisions regarding allocation of resources and assessment of the performance of the operating segments of the Company. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In May 2016, we formed the Office of the President and appointed the following three
individuals to serve as <FONT STYLE="white-space:nowrap">Co-Presidents,</FONT> each of whom reports directly to the CODM: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Karen Boone &#150; <FONT STYLE="white-space:nowrap">Co-President,</FONT> Chief Financial and Administrative Officer <I>
</I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:12%; font-size:10pt; font-family:Times New Roman"><I>Leads all financial and administrative functions for the Company, including strategic and financial planning, compliance,
accounting, treasury, tax, internal audit, human resources, investor relations, legal and facilities. Responsibilities also include the review of financial results for all areas of the company.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">Eri Chaya &#150; <FONT STYLE="white-space:nowrap">Co-President,</FONT> Chief Creative and Merchandise Officer and Director </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:12%; font-size:10pt; font-family:Times New Roman"><I>Leads all creative and merchandising functions for the Company, including product development, merchandising, sourcing, inventory planning,
plus the creative development and presentation of the Company&#146;s Galleries, Source Books, websites, and marketing strategies. Responsibilities also include the financial forecast and financial results for all product categories, which includes
demand, sales and <FONT STYLE="white-space:nowrap">non-GAAP</FONT> merchandise margins.</I> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; text-indent:4%; font-size:10pt; font-family:Times New Roman">DeMonty Price &#150; <FONT
STYLE="white-space:nowrap">Co-President,</FONT> Chief Operating, Service and Values Officer </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:12%; font-size:10pt; font-family:Times New Roman"><I>Leads service and operations across the
Company&#146;s Galleries, Outlets, distribution centers, customer care centers, and home delivery network, as well as ensure a deep commitment to our values and beliefs throughout the organization. Responsibilities also include the review of
historical <FONT STYLE="white-space:nowrap">4-wall</FONT> financial contribution for stores, including outlets, and our Contract business.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">As part of its fiscal 2016 analysis, the Company considered the following questions in order to determine if the
<FONT STYLE="white-space:nowrap">Co-President</FONT> structure had an impact on the Company&#146;s identification of the CODM: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Did the mere existence of a management committee result in that management committee being the CODM? </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Was the management committee used as a mechanism to provide input to the CEO?<I> </I> </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Did the management committee share in the decision making authority in the Company? </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="13%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Was the CEO still responsible for assessing performance and making the key operating decisions?<I> </I> </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The three <FONT STYLE="white-space:nowrap">Co-Presidents</FONT> have had varying access to the financial results for the operating segments and
have participated in discussions regarding the operating activities, financial results, forecasts, and plans for the segments. However the three <FONT STYLE="white-space:nowrap">Co-Presidents</FONT> were not directly accountable for the financial
results, forecasts and plans of the operating segments. Such accountability has been maintained by the CEO. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company concluded that even though it has established a management committee made up of
the <FONT STYLE="white-space:nowrap">Co-Presidents,</FONT> such committee is used as a mechanism to provide input to the CEO and it is the CEO who ultimately assesses performance and makes the key operating decisions. With consideration to the above
and based on the relationship and interaction between the Presidents and the CEO, the Company confirmed its determination that its CEO is the CODM. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The following are other individuals who reported directly to the CODM at the time of the fiscal 2016 analysis: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">David Stanchak &#150; Chief Real Estate&nbsp;&amp; Development Officer </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>Leads the transformation of the Company&#146;s legacy galleries into its next generation Design Galleries and oversees real estate and
store development efforts.</I> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Brendan Sodikoff &#150; Founder&nbsp;&amp; President of RH Hospitality </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>Oversees the growth and implementation of the RH Hospitality business.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">In addition, Peter Sallick, Waterworks&#146; CEO and the Waterworks segment manager, reports directly to the Company&#146;s CEO. As part of the
Company&#146;s segment analysis, management determined that Waterworks was a separate operating and reporting segment. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>4.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We have read your response to comment 7 and remain uncertain how you concluded your RH and Waterworks operating segments are the lowest level of identifiable cash flows. Please address the following:
</B></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Please explain to us whether or how you analyzed the amount of revenue generated from customers who shop in a RH Gallery and work with a Gallery associate to purchase merchandise either from the websites or Source
Books. In other words, tell us how you concluded there was significant revenue or cash flow interdependency among the RH Galley, the websites, and your Source Books to support your multi-channel strategy. If applicable, please provide a similar
analysis for your Waterworks boutiques and showrooms. </B></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The process of analyzing the amount of revenue generated from customers who shop in a RH Gallery and work with a Gallery associate to purchase
merchandise either from the websites or Source Books is not possible due to the interdependency between the RH Gallery, the websites and the Source Books. Such an analysis, even if possible to prepare, would not be meaningful as the Company does not
manage its business based on a customer&#146;s order method preference. Such interdependency is due to the following examples of how orders could be placed by customers: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 1</B>: A customer receives a Source Book at their home and identifies a couch that they might like to purchase. The customer orders
the couch using their personal computer at home. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a direct order and the sale is not
&#147;allocated&#148; to the RH Gallery in the market. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 2</B>: A customer receives a Source Book at their home and identifies a
couch that they might like to purchase. The customer visits their local RH Gallery to ask the retail sales person questions about the couch they might like to purchase (i.e. size, fabric, etc.). After having their questions answered, the customer
returns home and places their order using their personal computer at home. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a direct order and the
sale is not &#147;allocated&#148; to the RH Gallery in the market, <I>even though</I> the customer visited the RH Gallery and obtained assistance from the retail sales person. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 3</B>: A customer receives a Source Book at their home and identifies a couch that they might like to purchase. The customer visits
their local RH Gallery to ask the retail sales person questions about the couch they might like to purchase (i.e. size, fabric, etc.). After having their questions answered, the customer places an order with the retail sales person at the RH
Gallery. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a store sale for the RH Gallery, since the order was placed within the store location
via the retail sales person. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 4</B>: A customer does not receive a Source Book. The customer visits an RH Gallery and
identifies a couch they might like to purchase. The customer returns home and places their order using their personal computer at home. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a direct order and the sale is not &#147;allocated&#148; to the RH Gallery in the market, <I>even
though</I> the customer never received a Source Book, as we have no way of knowing if that customer actually visited an RH Gallery or not. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 5</B>: A customer does not receive a Source Book. The customer visits an RH Gallery and identifies a couch they might like to
purchase. The customer places an order with the retail sales person at the RH Gallery. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a store
sale for the RH Gallery, since the order was placed within the store location via the retail sales person. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 6</B>: A customer visits the RH website and identifies a couch that they might
like to purchase. The customer orders the couch using their personal computer at home. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a direct
order and the sale is not &#147;allocated&#148; to the RH Gallery in the market. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 7</B>: A customer visits the RH website and
identifies a couch that they might like to purchase. The customer visits their local RH Gallery to ask the retail sales person questions about the couch they might like to purchase (i.e. size, fabric, etc.). After having their questions answered,
the customer returns home and places their order using their personal computer at home. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a direct
order and the sale is not &#147;allocated&#148; to the RH Gallery in the market, <I>even though</I> the customer visited the RH Gallery and obtained assistance from the retail sales person. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Example 8</B>: A customer visits the RH website and identifies a couch that they might like to purchase. The customer visits their local RH
Gallery to ask the retail sales person questions about the couch they might like to purchase (i.e. size, fabric, etc.). After having their questions answered, the customer places an order with the retail sales person at the RH Gallery. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">In this example, the sale is treated as a store sale for the RH Gallery, since the order was placed within the store location via the retail
sales person. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">As evidenced by the examples above, if an order is not placed in the retail store, the Company does not have the ability to
&#147;allocate&#148; it to a specific retail location. Customers who have or who have not received a Source Book can place orders in the retail store. Conversely, customers who have or who have not received a Source Book can also place orders via
the website. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company believes that the examples outlined above are in fact illustrative of the purchasing patterns of many of its
customers. As a result, the Company has concluded that the revenue recognized and the cash flow received from the retail stores, the websites, and the Source Books are interdependent and support the multi-channel strategy. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">As Waterworks also has a multi-channel strategy (including showrooms, boutiques, sales representatives and, to a lesser extent, online), the
Company&#146;s conclusions are consistent for the Waterworks segment due to the disparate purchasing patterns that prevail in that business as well. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>Summarize for us how you analyze and forecast cash flows for business planning purposes. Further, tell us whether management forecasts cash flows at the individual store level (i.e., RH Gallery or the Waterworks
showrooms) separately from the websites and Source Books. Also tell us whether store level or regional managers are given sales goals for their individual stores or regions, and if so, how revenue from websites and Source Books are allocated to
individual stores or regions for purposes of determining whether such sales goals have been met. </B></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company forecasts and analyzes cash flows for RH at a consolidated level based on product categories. Our multi-channel forecast is
prepared as follows: </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B><I>Recurring Forecast Process</I></B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Revenue is forecasted at the consolidated level using a <FONT STYLE="white-space:nowrap">top-down</FONT> approach by product category for the
core RH business in total across the three primary channels: retail stores, web and catalog. Revenue is not forecasted for each channel, nor are channel forecasts implied or interpolated from historical data. The Company&#146;s assessment of
performance versus forecast for the core RH business does not look at which channels the revenue may have come from. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Expense forecasts
are prepared by our Financial Planning team with varying levels of input from other management personnel that are involved in the specific cost centers across the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">Store-level revenue targets are generated by using historical trends and are independent of revenue forecasts prepared at the product category
level. The store-level revenue targets are generally only used to create stretch incentive goals for the teams, which are based on store sales and payroll. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B><I>Approvals&nbsp;&amp; Monitoring</I></B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">The Chief Real Estate and Development Officer and his team also prepare forecasts for the new Design Gallery approvals by the Board of
Directors, which take into account expected cash flows, capital expenditures net of tenant allowances, and associated return on investment metrics, namely payback period. Cash flow forecasts are primarily driven by the assessment of the expected
sales lift a new Design Gallery will have relative to the store(s) it replaces as well as the new store occupancy costs. While a sales lift may occur in the direct channels in the surrounding market area around a new Design Gallery, the analysis
does not factor these potential incremental sales into the forecasts for the approval. Following the opening of new Design Galleries, the Company tracks the actual sales performance of the Gallery, operating results versus expectations and prior
periods based on historical store level financial results that are published monthly. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The channel-agnostic view of managing the business was a major shift in thinking that was led
by the CEO years prior to our 2012 initial public offering. Prior to the multi-channel approach, the retail business was planned separately from the direct business (which is the structure of many traditional retailers). The Company&#146;s view of
the business is more product-centric than channel focused. When the Company stopped focusing on the individual channels and instead redirected its full attention to the product, management was able to eliminate channel conflicts leaving the Company
indifferent to where the order is placed. Via the multi-channel approach, it has become easier to plan inventory purchases and drive the business at the top level, rather than in a channel-specific manner. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Full financial results for a retail store or region are not provided to the store level and regional leaders. Store level and regional leaders
are only provided with &#147;demand&#148; and &#147;net sales&#148; metrics for orders that are placed in the store, as well as payroll data and targets, which are the metrics used for the retail store stretch incentive goals. Revenue from websites
and Source Books are not allocated to individual stores. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Waterworks management forecasts and analyzes cash flows at the individual
Showroom and boutique level. Waterworks store and boutique level and regional managers are given sales goals for their individual locations or regions, however such sales goals do not include an allocation of revenue from the consumer (online)
business. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><B>&#149;</B></TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"><B>It appears you sometimes evaluate individual Galleries or other assets for circumstances that negatively impact such Gallery&#146;s or asset&#146;s ability to contribute to the asset group. Please tell us in further
detail what circumstances would necessitate such evaluation and how you address these situations in your impairment analysis and testing procedures. </B></TD></TR></TABLE>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Due to the very strong financial
performance of the Company&#146;s product centric strategy, there have been relatively few instances of the Company being required to record impairment charges in connection with specific store locations. The need to record impairment charges is
typically event driven based upon an anticipated change in store configuration in a particular market. The Company evaluates results at the individual retail location level in the event the Company has opened or plans to open a new Gallery in the
same market or when macro-economic matters negatively impact a specific market. Upon the Company&#146;s review, if it is determined that there are unique circumstances associated with an individual retail location that negatively impact its ability
to contribute to the asset group, management would determine if the Company should exit the leased property in advance of lease terms. Under these circumstances, management would separately assess whether a charge should be recorded for the
remaining lease payments, leasehold improvements and other assets of the retail location. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the Quarterly Period Ended April&nbsp;29, 2017
</U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Item&nbsp;2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Basis of Presentation and Results of Operations page 27 </U></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>5.</B></TD>
<TD ALIGN="left" VALIGN="top"><B>We have read your response to comment 17. Further, we note that revenue from the RH Members Program membership fee has not been material in relation to your overall revenue. Additionally, we note your disclosures in
your Form <FONT STYLE="white-space:nowrap">10-Q</FONT> filing for the quarterly period ended July&nbsp;29, 2017 indicate that revenue increased in part due to an increase in membership revenue and that you expect to recognize increased membership
revenue in the second half of fiscal 2017. In order to provide balanced and transparent disclosure about the impact of such increased membership revenue, we believe you should clarify for your investors that membership fee revenue is immaterial as
the meaning of your reference to membership revenue may be unclear. You also should more transparently convey why membership revenue increased in the historical period or is expected to increase in the future and how such increase impacts your
consolidated revenue; or if such increases are immaterial, clearly state as such. For example, if revenue from goods sold to members increases because more customers become members, that would appear to be offset by a decline in revenue from <FONT
STYLE="white-space:nowrap">non-members</FONT> and not necessarily impact your total revenue. </B></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Response:<B> </B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We respectfully confirm to the Staff that our RH Members Program membership fee has been immaterial relative to our overall revenue. We are
required to defer the membership fees collected over the one year membership period. Based on this deferral of membership fee revenue, we experienced a one year &#147;on ramp&#148; period for membership fee revenue during the first year of
operations after we introduced the membership program. This is a simple byproduct of deferring revenue for new memberships over the 12 month revenue recognition period. As a result the deferred revenue balance was building throughout the first year
of the program. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>


<p Style='page-break-before:always'>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms. Jennifer Thompson </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 4, 2017 </P>
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 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">After the one year anniversary of the launch of the membership program, we effectively lapped
the first 12 month revenue recognition periods from our initial membership sales such that each month we are recognizing a portion of membership revenue from membership sales over a trailing twelve month time period. Accordingly, following the
anniversary of the membership program launch, we began recognizing a larger percentage of membership fees each period relative to the prior period during the first year of the membership program. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Specifically, in our second fiscal quarter of 2017, membership fee revenue represented only [*&nbsp;&nbsp;&nbsp;&nbsp;*] million, or
[*&nbsp;&nbsp;&nbsp;&nbsp;*], of our total net revenue. However, membership fee revenue increased by [*&nbsp;&nbsp;&nbsp;&nbsp;*] million versus the prior year second quarter, which represented one point of aggregated net revenue growth in the
second quarter of fiscal 2017 versus the prior period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">We will include additional disclosure in our future filings to better describe and
quantify the specific impact, if any, that the membership revenue is having on our overall sales growth. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;* </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Company hereby acknowledges that: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the Company is responsible for the adequacy and accuracy of the disclosure in the filings; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Staff comments or changes to disclosure in response to Staff comments do not foreclose the SEC from taking any action with respect to the filings; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the Company may not assert Staff comments as a defense in any proceeding initiated by the SEC or any person under the federal securities laws of the United States. </TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">If you require additional information or have any questions about this letter, please call me at (415)
<FONT STYLE="white-space:nowrap">945-4573.</FONT> </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>
<TD WIDTH="100%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4.00em; font-size:10pt; font-family:Times New Roman">Very truly yours,</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4.00em; font-size:10pt; font-family:Times New Roman">/s/ Karen Boone</P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:1pt">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:4.00em; font-size:10pt; font-family:Times New Roman">Karen Boone</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:4.00em; font-size:10pt; font-family:Times New Roman">President, Chief Financial and Administrative Officer</P></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><B>*</B></TD>
<TD ALIGN="left" VALIGN="top"><B>Confidential Treatment Requested by RH. The text indicated within brackets [*&nbsp;&nbsp;*] has been omitted and provided separately to the SEC pursuant to a request for confidential treatment under Rule 83.
</B></TD></TR></TABLE>

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