| Schedule of net revenues in accordance with ASC 606, significant segment expenses and segment adjusted operating income - reportable segment |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | YEAR ENDED | | | JANUARY 31, | | FEBRUARY 1, | | FEBRUARY 3, | | | 2026 | | 2025 | | 2024 | | | RH SEGMENT | | WATERWORKS | | TOTAL(1) | | RH SEGMENT | | WATERWORKS | | TOTAL(1) | | RH SEGMENT | | WATERWORKS | | TOTAL(1) | | | | (in thousands) | Net revenues | | $ | 3,241,389 | | $ | 198,147 | | $ | 3,439,536 | | $ | 2,987,818 | | $ | 192,935 | | $ | 3,180,753 | | $ | 2,835,617 | | $ | 193,509 | | $ | 3,029,126 | Cost of goods sold | | | 1,830,472 | | | 93,307 | | | 1,923,779 | | | 1,674,644 | | | 91,177 | | | 1,765,821 | | | 1,549,510 | | | 90,597 | | | 1,640,107 | Advertising expense | | | 102,652 | | | 3,012 | | | 105,664 | | | 119,238 | | | 3,243 | | | 122,481 | | | 103,690 | | | 3,210 | | | 106,900 | Other segment expenses(2) | | | 938,714 | | | 79,892 | | | 1,018,606 | | | 857,742 | | | 76,471 | | | 934,213 | | | 812,959 | | | 75,373 | | | 888,332 | Segment adjusted operating income(1) | | $ | 369,551 | | $ | 21,936 | | $ | 391,487 | | $ | 336,194 | | $ | 22,044 | | $ | 358,238 | | $ | 369,458 | | $ | 24,329 | | $ | 393,787 | Asset impairments | | | | | | | | | 3,597 | | | | | | | | | 36,071 | | | | | | | | | 3,531 | Product recall | | | | | | | | | 1,913 | | | | | | | | | — | | | | | | | | | (1,576) | Reorganization related costs | | | | | | | | | 1,233 | | | | | | | | | 4,423 | | | | | | | | | 7,621 | Non-cash compensation | | | | | | | | | 851 | | | | | | | | | 4,532 | | | | | | | | | 9,640 | Contract termination settlement—net | | | | | | | | | (3,375) | | | | | | | | | — | | | | | | | | | — | Legal settlements—net | | | | | | | | | — | | | | | | | | | (9,375) | | | | | | | | | 8,500 | Operating income | | | | | | | | | 387,268 | | | | | | | | | 322,587 | | | | | | | | | 366,071 | Interest expense—net | | | | | | | | | 225,378 | | | | | | | | | 230,601 | | | | | | | | | 198,296 | Other (income) expense—net | | | | | | | | | (5,048) | | | | | | | | | 3,395 | | | | | | | | | 1,078 | Income before taxes and equity method investments | | | | | | | | $ | 166,938 | | | | | | | | $ | 88,591 | | | | | | | | $ | 166,697 |
| (1) | All intercompany transactions are not material 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. |
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| Schedule of balance sheet information for our segments |
| | | | | | | | | | | | | | | | | TRADENAMES, | | | | | | | | | | TRADEMARKS AND | | | | | | | | | | | OTHER INTANGIBLE | | EQUITY METHOD | | TOTAL | | | GOODWILL(1) | | ASSETS(2) | | INVESTMENTS | | ASSETS | | | | (in thousands) | February 1, 2025 | | | | | | | | | | | | | RH Segment | | $ | 140,943 | | $ | 59,118 | | $ | — | | $ | 4,228,829 | Waterworks | | | — | | | 17,000 | | | 3,276 | | | 165,442 | Real Estate | | | — | | | — | | | 123,633 | | | 160,418 | Total | | $ | 140,943 | | $ | 76,118 | | $ | 126,909 | | $ | 4,554,689 | January 31, 2026 | | | | | | | | | | | | | RH Segment | | $ | 144,239 | | $ | 62,777 | | $ | — | | $ | 4,499,349 | Waterworks | | | — | | | 17,000 | | | 4,363 | | | 184,203 | Real Estate | | | — | | | — | | | 115,391 | | | 152,158 | Total | | $ | 144,239 | | $ | 79,777 | | $ | 119,754 | | $ | 4,835,710 |
| (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. |
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