XML 41 R22.htm IDEA: XBRL DOCUMENT
v3.25.2

SEGMENT REPORTING | 6 Months Ended
--- | ---
Aug. 02, 2025
SEGMENT REPORTING |
SEGMENT REPORTING | NOTE 15—SEGMENT REPORTING We define reportable and operating segments on the same basis that we use to evaluate our performance internally by the chief operating decision maker (“CODM”), which we have determined is our Chief Executive Officer. We have three operating segments: RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks operating segments (the “retail operating segments”) include all sales channels accessed by our customers, including sales through retail locations and outlets, including hospitality, websites, Sourcebooks, and the Trade and Contract channels. The Real Estate segment represents operations associated with certain of our equity method investments and consolidated VIEs that have operations, which are not directly related to the activities of the retail operating segments. The retail operating segments are strategic business units that offer products for the home furnishings customer. While RH Segment and Waterworks have a shared senior leadership team and customer base, we have determined that their results cannot be aggregated as they do not share similar economic characteristics, as well as due to other quantitative factors. Segment Information The CODM uses segment adjusted operating income to evaluate segment profitability for the retail operating segments and to allocate resources and analyze variances of actual performance to our forecasts when making decisions. Operating income is defined as net income before interest expense—net, other (income) expense—net, income tax expense and our share of equity method investments (income) loss—net. Segment adjusted operating income excludes (i) certain asset impairments, (ii) product recall, (iii) severance costs associated with a reorganization, (iv) non-cash compensation amortization related to an option grant made to Mr. Friedman in October 2020 and (v) legal settlements. These items are excluded from segment adjusted operating income in order to provide better transparency of segment operating results. Accordingly, these items are not presented by segment because they are excluded from the segment profitability measure that the CODM and our senior leadership team review. Segment net revenues, which represent our disaggregated net revenues in accordance with Accounting Standards Codification 606, significant segment expenses and segment adjusted operating income, by reportable segment, were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 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.
In the three months ended August 2, 2025 and August 3, 2024, the Real Estate segment share of equity method investments loss, which is the measure of segment profitability reviewed by the CODM to evaluate performance internally for the Real Estate segment, was $1.7 million and $3.9 million, respectively. In the six months ended August 2, 2025 and August 3, 2024, the Real Estate segment share of equity method investment operations was income of $6.5 million and loss of $6.7 million, respectively. The share of loss from equity method investments for the Waterworks segment was immaterial in all fiscal periods presented. Depreciation and amortization for our segments was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 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.
Balance sheet information for our segments consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 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.
We are domiciled in the United States and primarily operate our retail locations and outlets in 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration