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v3.25.2

SEGMENT REPORTING (Tables) | 6 Months Ended
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Aug. 02, 2025
SEGMENT REPORTING |
Schedule of net revenues in accordance with ASC 606, significant segment expenses and segment adjusted operating income - reportable segment | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | THREE MONTHS ENDED | ​ | SIX MONTHS ENDED
​ | ​ | AUGUST 2, | ​ | AUGUST 3, | ​ | AUGUST 2, | ​ | AUGUST 3,
​ |  | 2025 | ​ | 2024 | ​ | 2025 | ​ | 2024
​ | ​ | RH SEGMENT | ​ | WATERWORKS | ​ | TOTAL(1) | ​ | RH SEGMENT | ​ | WATERWORKS | ​ | TOTAL(1) | ​ | RH SEGMENT | ​ | WATERWORKS | ​ | TOTAL(1) | ​ | RH SEGMENT | ​ | WATERWORKS | ​ | TOTAL(1)
​ | ​ | (in thousands)
Net revenues | ​ | $ | 846,717 | ​ | $ | 52,434 | ​ | $ | 899,151 | ​ | $ | 780,925 | ​ | $ | 48,730 | ​ | $ | 829,655 | ​ | $ | 1,611,715 | ​ | $ | 101,388 | ​ | $ | 1,713,103 | ​ | $ | 1,457,991 | ​ | $ | 98,624 | ​ | $ | 1,556,615
Cost of goods sold | ​ | ​ | 465,811 | ​ | ​ | 24,081 | ​ | ​ | 489,892 | ​ | ​ | 432,301 | ​ | ​ | 22,597 | ​ | ​ | 454,898 | ​ | ​ | 901,015 | ​ | ​ | 47,496 | ​ | ​ | 948,511 | ​ | ​ | 819,559 | ​ | ​ | 46,261 | ​ | ​ | 865,820
Advertising expense | ​ | ​ | 14,365 | ​ | ​ | 1,003 | ​ | ​ | 15,368 | ​ | ​ | 43,397 | ​ | ​ | 945 | ​ | ​ | 44,342 | ​ | ​ | 63,088 | ​ | ​ | 1,658 | ​ | ​ | 64,746 | ​ | ​ | 77,730 | ​ | ​ | 1,712 | ​ | ​ | 79,442
Other segment expenses(2) | ​ | ​ | 237,791 | ​ | ​ | 20,481 | ​ | ​ | 258,272 | ​ | ​ | 214,700 | ​ | ​ | 18,727 | ​ | ​ | 233,427 | ​ | ​ | 467,407 | ​ | ​ | 40,058 | ​ | ​ | 507,465 | ​ | ​ | 428,744 | ​ | ​ | 38,386 | ​ | ​ | 467,130
Segment adjusted operating income(1) | ​ | ​ | 128,750 | ​ | ​ | 6,869 | ​ | ​ | 135,619 | ​ | ​ | 90,527 | ​ | ​ | 6,461 | ​ | ​ | 96,988 | ​ | ​ | 180,205 | ​ | ​ | 12,176 | ​ | ​ | 192,381 | ​ | ​ | 131,958 | ​ | ​ | 12,265 | ​ | ​ | 144,223
Asset impairments | ​ |  | ​ | ​ |  | ​ | ​ |  | 3,597 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ |  | ​ | ​ | ​ | ​ | ​ |  | 3,597 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | —
Product recall | ​ |  | ​ | ​ |  | ​ | ​ |  | 1,913 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ |  | ​ | ​ | ​ | ​ | ​ |  | 1,913 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | —
Reorganization related costs | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | 1,233 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,233 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | —
Non-cash compensation | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | — | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 861 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 851 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 2,808
Legal settlements—net | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | — | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | — | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | (9,375)
Operating income | ​ |  | ​ | ​ |  | ​ | ​ |  | 128,876 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 96,127 | ​ |  | ​ | ​ | ​ | ​ | ​ |  | 184,787 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 150,790
Interest expense—net | ​ |  | ​ | ​ |  | ​ | ​ |  | 57,358 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 59,262 | ​ |  | ​ | ​ | ​ | ​ | ​ |  | 113,961 | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 116,034
Other (income) expense—net | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | (574) | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | (663) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (4,227) | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | 502
Income before taxes and equity method investments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 72,092 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 37,528 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 75,053 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 34,254
(1) | All intercompany transactions are immaterial and have been eliminated.
(2) | Other segment expenses primarily include compensation and occupancy costs classified as selling, general and administrative expenses, and other general and administrative expenses.
Schedule of depreciation and amortization for our segments | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | THREE MONTHS ENDED | ​ | SIX MONTHS ENDED
​ | ​ | AUGUST 2, | ​ | AUGUST 3, | ​ | AUGUST 2, | ​ | AUGUST 3,
​ |  | 2025 |  | 2024 |  | 2025 |  | 2024
​ | ​ | (in thousands)
RH Segment | ​ | $ | 32,879 | ​ | $ | 30,618 | ​ | $ | 66,740 | ​ | $ | 60,001
Waterworks | ​ | ​ | 1,750 | ​ | ​ | 1,639 | ​ | ​ | 3,125 | ​ | ​ | 3,083
Real Estate(1) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Total depreciation and amortization |  | $ | 34,629 |  | $ | 32,257 |  | $ | 69,865 |  | $ | 63,084
(1) | There is no depreciation and amortization for the Real Estate segment since all assets represent construction in progress.
Schedule of balance sheet information for our segments | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | AUGUST 2, | ​ | FEBRUARY 1,
​ | ​ | 2025 | ​ | 2025
​ |  | RH SEGMENT |  | WATERWORKS |  | REAL ESTATE |  | TOTAL |  | RH SEGMENT |  | WATERWORKS |  | REAL ESTATE |  | TOTAL
​ | ​ | (in thousands)
Goodwill(1) | ​ | $ | 143,774 | ​ | $ | — | ​ | $ | — | ​ | $ | 143,774 | ​ | $ | 140,943 | ​ | $ | — | ​ | $ | — | ​ | $ | 140,943
Tradenames, trademarks and other intangible assets(2) | ​ |  | 62,656 | ​ |  | 17,000 | ​ |  | — | ​ |  | 79,656 | ​ |  | 59,118 | ​ |  | 17,000 | ​ |  | — | ​ |  | 76,118
Equity method investments(3) | ​ | ​ | — | ​ | ​ | 3,995 | ​ | ​ | 117,604 | ​ | ​ | 121,599 | ​ | ​ | — | ​ | ​ | 3,276 | ​ | ​ | 123,633 | ​ | ​ | 126,909
Total assets | ​ |  | 4,379,846 | ​ | ​ | 162,800 | ​ | ​ | 154,375 | ​ |  | 4,697,021 | ​ |  | 4,228,829 | ​ |  | 165,442 | ​ |  | 160,418 | ​ |  | 4,554,689
(1) | The Waterworks reporting unit goodwill of $51 million recognized upon acquisition in fiscal 2016 was fully impaired as of fiscal 2018.
(2) | The Waterworks reporting unit tradename is presented net of an impairment charge of $35 million recognized in prior fiscal years.
(3) | The Waterworks segment balance represents membership interests in two European entities, one entity in which we hold a 50 percent membership interest and another entity in which we increased our membership interest from approximately 25 percent as of February 1, 2025 to approximately 28 percent as of August 2, 2025. We are not the primary beneficiary of either of these VIEs.
Schedule of retail locations and outlets outside the United States | As of August 2, 2025, we operated the following number of retail locations and outlets outside the United States: ​
​ | ​ | ​
​ | ​ | COUNT
Canada | ​ | 5
United Kingdom | ​ | 3
Germany | ​ | 2
Belgium | ​ | 1
Spain | ​ | 1
Total(1) | ​ | 12
(1) | Geographic revenues generated outside of the United States did not exceed 10% of total consolidated net revenues in either fiscal period presented.

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