LEASES

3 Months Ended

May 02, 2026

NOTE 7—LEASES

Lease costs—net consisted of the following:


			THREE MONTHS ENDED
			MAY 2,			MAY 3,
			2026			2025

			(in thousands)
Operating lease costs⁽¹⁾			$	40,174		$	35,446
Finance lease costs
Amortization of leased assets⁽¹⁾				17,206			14,673
Interest on lease liabilities⁽²⁾				11,278			8,945
Variable lease costs⁽³⁾				7,074			7,187
Sublease income⁽⁴⁾				(1,176)			(1,182)
Total lease costs—net			$	74,556		$	65,069

(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 condensed consolidated statements of income (loss) based on our accounting policy.

(2)

Included in interest expense—net on the condensed consolidated statements of income (loss). 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 either 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 $3.7 million and $4.1 million for the three months ended May 2, 2026 and May 3, 2025, respectively, as well as charges associated with common area maintenance of $3.4 million and $3.1 million for the three months ended May 2, 2026 and May 3, 2025, 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, were not material in either period presented.

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

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


			MAY 2,		JANUARY 31,
	BALANCE SHEET CLASSIFICATION		2026		2026

			(in thousands)
ASSETS
Operating leases⁽¹⁾	Operating lease right-of-use assets		$	835,074	$	795,352
Finance leases^(2)(3)(4)	Property and equipment—net			1,228,467		1,181,339
Total lease right-of-use assets			$	2,063,541	$	1,976,691
LIABILITIES
Current⁽⁵⁾
Operating leases	Operating lease liabilities		$	110,255	$	110,280
Finance leases	Other current liabilities			21,943		21,249
Total lease liabilities—current				132,198		131,529
Non-current
Operating leases	Non-current operating lease liabilities			733,340		705,084
Finance leases	Non-current finance lease liabilities			734,159		718,837
Total lease liabilities—non-current				1,467,499		1,423,921
Total lease liabilities			$	1,599,697	$	1,555,450

(1)	Includes $41 million as of both May 2, 2026 and January 31, 2026 related to a future RH Design Gallery lease where the landlord is one of the Aspen LLCs. Refer to Note 5—Variable Interest Entities.

(2)	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.

(3)	Recorded net of accumulated amortization of $401 million and $384 million as of May 2, 2026 and January 31, 2026, respectively.

(4)	Includes $32 million and $33 million as of May 2, 2026 and January 31, 2026, 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 5—Variable Interest Entities.

(5)	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 May 2, 2026:


	OPERATING		FINANCE
FISCAL YEAR	LEASES		LEASES		TOTAL

	(in thousands)
Remainder of fiscal 2026	$	126,011	$	47,850	$	173,861
2027		149,854		64,939		214,793
2028		118,963		64,090		183,053
2029		107,145		63,786		170,931
2030		98,390		64,819		163,209
2031		79,923		61,877		141,800
Thereafter		595,362		1,170,881		1,766,243
Total lease payments⁽¹⁾⁽²⁾		1,275,648		1,538,242		2,813,890
Less—imputed interest⁽³⁾		(432,053)		(782,140)		(1,214,193)
Present value of lease liabilities	$	843,595	$	756,102	$	1,599,697

(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 $578 million of legally binding payments under the non-cancellable term for leases signed but not yet commenced under our accounting policy as of May 2, 2026, of which $17 million, $29 million, $32 million, $34 million, $35 million and $35 million will be paid in the remainder of fiscal 2026, fiscal 2027, fiscal 2028, fiscal 2029, fiscal 2030 and fiscal 2031, respectively, and $396 million will be paid subsequent to fiscal 2031.

(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:


	THREE MONTHS ENDED
	MAY 2,			MAY 3,
	2026			2025
Weighted-average remaining lease term (years)
Operating leases		11.4		9.4
Finance leases		21.7		20.0
Weighted-average discount rate
Operating leases		6.6	%	6.0	%
Finance leases		6.5	%	5.8	%

Other information related to leases consisted of the following:


	THREE MONTHS ENDED
	MAY 2,		MAY 3,
	2026		2025

	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(40,990)	$	(45,409)
Operating cash flows from finance leases		(11,278)		(13,477)
Financing cash flows from finance leases—net⁽¹⁾		(6,971)		(6,464)
Total cash outflows from leases	$	(59,239)	$	(65,350)
Non-cash transactions
Lease right-of-use assets obtained in exchange for lease obligations—net of lease terminations
Operating leases	$	57,667	$	60,755
Finance leases		20,606		—
Reclassification from other non-current assets to finance lease right-of-use assets		47,099		—
Reclassification from other non-current assets to operating lease right-of-use assets		11,979		—

(1)	Presented net of tenant allowances received subsequent to lease commencement of $1.4 million in the three months ended May 3, 2025. No such amounts were received from landlords in the three months ended May 2, 2026.