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SEGMENT REPORTING (Tables)

9 Months Ended

Nov. 01, 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																		NINE MONTHS ENDED
		NOVEMBER 1,									NOVEMBER 2,									NOVEMBER 1,									NOVEMBER 2,
		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		$	835,821		$	47,989		$	883,810		$	768,063		$	43,669		$	811,732		$	2,447,536		$	149,377		$	2,596,913		$	2,226,054		$	142,293		$	2,368,347
Cost of goods sold			472,171			21,903			494,074			429,121			21,271			450,392			1,373,186			69,399			1,442,585			1,248,680			67,532			1,316,212
Advertising expense			35,976			775			36,751			16,040			852			16,892			99,064			2,433			101,497			93,770			2,564			96,334
Other segment expenses⁽²⁾			230,525			19,905			250,430			204,112			18,462			222,574			697,932			59,963			757,895			632,856			56,848			689,704
Segment adjusted operating income⁽¹⁾			97,149			5,406			102,555			118,790			3,084			121,874			277,354			17,582			294,936			250,748			15,349			266,097
Asset impairments									—									19,545									3,597									19,545
Product recall									—									—									1,913									—
Reorganization related costs									—									—									1,233									—
Non-cash compensation									—									861									851									3,669
Contract termination settlement—net									(3,375)									—									(3,375)									—
Legal settlements—net									—									—									—									(9,375)
Operating income									105,930									101,468									290,717									252,258
Interest expense—net									57,152									57,590									171,113									173,624
Other (income) expense—net									694									27									(3,533)									529
Income before taxes and equity method investments								$	48,084								$	43,851								$	123,137								$	78,105

(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						NINE MONTHS ENDED
		NOVEMBER 1,			NOVEMBER 2,			NOVEMBER 1,			NOVEMBER 2,
		2025			2024			2025			2024

		(in thousands)
RH Segment		$	37,207		$	31,428		$	103,947		$	91,429
Waterworks			1,169			1,570			4,294			4,653
Real Estate⁽¹⁾			—			—			—			—
Total depreciation and amortization		$	38,376		$	32,998		$	108,241		$	96,082

(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


		NOVEMBER 1,												FEBRUARY 1,
		2025												2025
		RH SEGMENT			WATERWORKS			REAL ESTATE			TOTAL			RH SEGMENT			WATERWORKS			REAL ESTATE			TOTAL

		(in thousands)
Goodwill⁽¹⁾		$	143,755		$	—		$	—		$	143,755		$	140,943		$	—		$	—		$	140,943
Tradenames, trademarks and other intangible assets⁽²⁾			62,708			17,000			—			79,708			59,118			17,000			—			76,118
Equity method investments⁽³⁾			—			4,153			117,251			121,404			—			3,276			123,633			126,909
Total assets			4,472,820			166,900			154,021			4,793,741			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 November 1, 2025. We are not the primary beneficiary of either of these VIEs.

Schedule of retail locations and outlets outside the United States

As of November 1, 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
France		1
Spain		1
Total⁽¹⁾		13

(1)	Geographic revenues generated outside of the United States did not exceed 10% of total consolidated net revenues in either fiscal period presented.