LEASES

12 Months Ended

Jan. 31, 2026

NOTE 10—LEASES

Lease costs—net consisted of the following:


		YEAR ENDED
		JANUARY 31,			FEBRUARY 1,			FEBRUARY 3,
		2026			2025			2024

		(in thousands)
Operating lease costs⁽¹⁾		$	149,796		$	132,377		$	116,553
Finance lease costs
Amortization of leased assets⁽¹⁾			62,875			52,725			54,596
Interest on lease liabilities⁽²⁾			40,093			31,896			33,822
Variable lease costs⁽³⁾			25,091			24,565			23,517
Sublease income⁽⁴⁾			(4,747)			(4,701)			(5,544)
Total lease costs—net		$	273,108		$	236,862		$	222,944

(1)	Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the consolidated statements of income based on our accounting policy. Refer to Note 3—Significant Accounting Policies.

(2)

Included in interest expense—net on the consolidated statements of income. Amounts include lease cost related to variable lease payments based on an index or rate that were not included in the measurement of the initial lease liability and right-of-use asset for finance leases, which were not material in any period presented.

(3)

Represents variable lease payments under operating and finance lease agreements, primarily associated with contingent rent based on a percentage of retail sales over contractual levels of $14 million in each of fiscal 2025, fiscal 2024 and fiscal 2023, as well as charges associated with common area maintenance of $11 million, $11 million and $9.1 million in fiscal 2025, fiscal 2024 and fiscal 2023, respectively. Other variable costs, which include single lease cost related to variable lease payments based on an index or rate that were not included in the measurement of the initial lease liability and right-of-use asset for operating leases, were not material in any fiscal period presented.

(4)	Included in selling, general and administrative expenses on the consolidated statements of income.

Lease right-of-use assets and lease liabilities consisted of the following:


			JANUARY 31,		FEBRUARY 1,
	BALANCE SHEET CLASSIFICATION		2026		2025

			(in thousands)
ASSETS
Operating leases	Operating lease right-of-use assets		$	795,352	$	617,103
Finance leases^(1)(2)(3)	Property and equipment—net			1,181,339		1,007,088
Total lease right-of-use assets			$	1,976,691	$	1,624,191
LIABILITIES
Current⁽⁴⁾
Operating leases	Operating lease liabilities		$	110,280	$	100,944
Finance leases	Other current liabilities			21,249		21,135
Total lease liabilities—current				131,529		122,079
Non-current
Operating leases	Non-current operating lease liabilities			705,084		573,468
Finance leases	Non-current finance lease liabilities			718,837		630,655
Total lease liabilities—non-current				1,423,921		1,204,123
Total lease liabilities			$	1,555,450	$	1,326,202

(1)	Includes capitalized amounts related to our completed construction activities to design and build leased assets, which are reclassified from other non-current assets upon lease commencement.

(2)	Recorded net of accumulated amortization of $384 million and $320 million as of January 31, 2026 and February 1, 2025, respectively.

(3)	Includes $33 million and $35 million as of January 31, 2026 and February 1, 2025, respectively, related to an RH Design Gallery lease with a landlord that is an affiliate of the managing member of the Aspen LLCs. Refer to Note 8—Variable Interest Entities.

(4)	Current portion of lease liabilities represents the reduction of the related lease liability over the next 12 months.

The maturities of lease liabilities were as follows as of January 31, 2026:


	OPERATING		FINANCE
FISCAL YEAR	LEASES		LEASES		TOTAL

	(in thousands)
2026	$	153,874	$	61,690	$	215,564
2027		144,684		63,344		208,028
2028		113,866		62,495		176,361
2029		101,958		62,191		164,149
2030		93,078		63,224		156,302
Thereafter		588,756		1,188,164		1,776,920
Total lease payments⁽¹⁾⁽²⁾		1,196,216		1,501,108		2,697,324
Less—imputed interest⁽³⁾		(380,852)		(761,022)		(1,141,874)
Present value of lease liabilities	$	815,364	$	740,086	$	1,555,450

(1)

Total lease payments include future obligations for renewal options that are reasonably certain to be exercised and are included in the measurement of the lease liability. Total lease payments exclude $645 million of legally binding payments under the non-cancellable term for leases signed but not yet commenced under our accounting policy as of January 31, 2026, of which $26 million, $34 million, $36 million, $39 million and $40 million are expected to be paid in fiscal 2026, fiscal 2027, fiscal 2028, fiscal 2029 and fiscal 2030, respectively, and $470 million will be paid subsequent to fiscal 2030.

(2)	Excludes an immaterial amount of future commitments under short-term lease agreements.

(3)	Calculated using the discount rate for each lease at lease commencement.

Supplemental information related to leases consisted of the following:


	YEAR ENDED
	JANUARY 31,			FEBRUARY 1,
	2026			2025
Weighted-average remaining lease term (years)
Operating leases		10.5		9.1
Finance leases		21.6		20.2
Weighted-average discount rate
Operating leases		6.5	%	5.8	%
Finance leases		6.5	%	5.8	%

Other information related to leases consisted of the following:


	YEAR ENDED
	JANUARY 31,			FEBRUARY 1,			FEBRUARY 3,
	2026			2025			2024

	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(147,525)		$	(121,128)		$	(122,220)
Operating cash flows from finance leases		(40,093)			(28,028)			(37,819)
Financing cash flows from finance leases—net⁽¹⁾		(13,036)			(20,752)			(13,972)
Total cash outflows from leases	$	(200,654)		$	(169,908)		$	(174,011)
Non-cash transactions
Lease right-of-use assets obtained in exchange for lease obligations—net of lease terminations
Operating leases⁽²⁾	$	235,534		$	102,387		$	170,542
Finance leases		106,832			85,116			1,648
Reclassification from other non-current assets to finance lease right-of-use assets		131,166			139,567			—
Reclassification from other non-current assets to operating lease right-of-use assets		35,845			—			—
Reclassification of finance lease right-of-use asset to property and equipment⁽³⁾		—			—			188,515
Reclassification of finance lease liability to property and equipment⁽³⁾		—			—			(71,612)

(1)	Presented net of tenant allowances received subsequent to lease commencement of $15 million, $4.8 million and $2.4 million in fiscal 2025, fiscal 2024 and fiscal 2023, respectively.

(2)	Right-of-use assets obtained in exchange for new operating lease liabilities exclude the impact from acquisitions of $4.3 million for fiscal 2025. Refer to Note 6—Business Combinations.

(3)

During fiscal 2023, we purchased the building and land of our RH Guesthouse New York location and terminated the lease associated with the property. As a result, we reclassified the right-of-use asset and lease liability to property and equipment—net on the consolidated balance sheets as of the purchase date.