SEGMENT REPORTING (Tables)
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3 Months Ended |
May 02, 2026 |
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| SEGMENT REPORTING |
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| Schedule of net revenues in accordance with ASC 606, significant segment expenses and segment adjusted operating income - reportable segment |
| | | | | | | | | | | | | | | | | | | | | THREE MONTHS ENDED | | | MAY 2, | | MAY 3, | | | 2026 | | 2025 | | | RH SEGMENT | | WATERWORKS | | TOTAL(1) | | RH SEGMENT | | WATERWORKS | | TOTAL(1) | | | | (in thousands) | Net revenues | | $ | 752,202 | | $ | 48,126 | | $ | 800,328 | | $ | 764,998 | | $ | 48,954 | | $ | 813,952 | Cost of goods sold | | | 446,180 | | | 22,889 | | | 469,069 | | | 435,204 | | | 23,415 | | | 458,619 | Advertising expense | | | 51,181 | | | 938 | | | 52,119 | | | 48,723 | | | 655 | | | 49,378 | Other segment expenses(2) | | | 255,882 | | | 20,683 | | | 276,565 | | | 229,616 | | | 19,577 | | | 249,193 | Segment adjusted operating income (loss) | | $ | (1,041) | | $ | 3,616 | | $ | 2,575 | | $ | 51,455 | | $ | 5,307 | | $ | 56,762 | Legal settlement—net | | | | | | | | | (31,668) | | | | | | | | | — | Non-cash compensation | | | | | | | | | — | | | | | | | | | 851 | Operating income | | | | | | | | | 34,243 | | | | | | | | | 55,911 | Interest expense—net | | | | | | | | | 52,663 | | | | | | | | | 56,603 | Other (income) expense—net | | | | | | | | | 737 | | | | | | | | | (3,653) | Income (loss) before income taxes and equity method investments | | | | | | | | $ | (19,157) | | | | | | | | $ | 2,961 |
| (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 depreciation and amortization for our segments |
| | | | | | | | | THREE MONTHS ENDED | | | MAY 2, | | MAY 3, | | | 2026 | | 2025 | | | | (in thousands) | RH Segment | | $ | 37,127 | | $ | 33,861 | Waterworks | | | 1,620 | | | 1,375 | Real Estate(1) | | | — | | | — | Total depreciation and amortization | | $ | 38,747 | | $ | 35,236 |
| (1) | There is no depreciation and amortization for the Real Estate segment since all assets represent construction in progress. |
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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) | 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 | May 2, 2026 | | | | | | | | | | | | | RH Segment | | $ | 144,242 | | $ | 62,972 | | $ | — | | $ | 4,604,750 | Waterworks | | | — | | | 17,000 | | | 4,538 | | | 191,329 | Real Estate | | | — | | | — | | | 114,773 | | | 151,598 | Total | | $ | 144,242 | | $ | 79,972 | | $ | 119,311 | | $ | 4,947,677 |
| (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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| Schedule of retail locations and outlets outside the United States |
As of May 2, 2026, we operated the following number of retail locations and outlets outside the United States: | | | | | COUNT | Canada | | 6 | United Kingdom | | 3 | Germany | | 2 | Belgium | | 1 | France | | 1 | Italy | | 1 | Spain | | 1 | Total(1) | | 15 |
| (1) | Geographic revenues generated outside of the United States did not exceed 10% of total consolidated net revenues in either fiscal period presented. |
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