v3.26.1
SEGMENT REPORTING (Tables)
6 Months Ended
Aug. 01, 2026
SEGMENT REPORTING  
Schedule of net revenues in accordance with ASC 606, significant segment expenses and segment adjusted operating income - reportable segment

THREE MONTHS ENDED

SIX MONTHS ENDED

AUGUST 1,

AUGUST 2,

AUGUST 1,

AUGUST 2,

  ​ ​ ​

2026

2025

  ​ ​ ​

2026

2025

RH SEGMENT

WATERWORKS

TOTAL(1)

RH SEGMENT

WATERWORKS

TOTAL(1)

RH SEGMENT

WATERWORKS

TOTAL(1)

RH SEGMENT

WATERWORKS

TOTAL(1)

(in thousands)

Net revenues

$

867,280

$

54,870

$

922,150

$

846,717

$

52,434

$

899,151

$

1,619,482

$

102,996

$

1,722,478

$

1,611,715

$

101,388

$

1,713,103

Cost of goods sold(2)

456,061

21,236

477,297

465,811

24,081

489,892

902,241

44,125

946,366

901,015

47,496

948,511

Advertising expense

34,546

1,215

35,761

14,365

1,003

15,368

85,727

2,153

87,880

63,088

1,658

64,746

Other segment expenses(3)

265,793

22,086

287,879

237,791

20,481

258,272

521,675

42,769

564,444

467,407

40,058

507,465

Segment adjusted operating income

$

110,880

$

10,333

$

121,213

$

128,750

$

6,869

$

135,619

$

109,839

$

13,949

$

123,788

$

180,205

$

12,176

$

192,381

Legal settlement—net

 

 

(31,668)

 

Variable interest entities restructuring

 

 

13,640

 

 

13,640

 

Asset impairments

 

 

 

 

3,597

 

 

 

3,597

Product recall

 

 

 

 

1,913

 

 

 

1,913

Reorganization related costs

 

 

1,233

 

1,233

Non-cash compensation

 

 

 

851

Operating income

 

 

 

107,573

 

128,876

 

 

141,816

 

184,787

Interest expense—net

 

 

 

50,993

 

57,358

 

 

103,656

 

113,961

Other income—net

 

(1,856)

 

(574)

(1,119)

 

(4,227)

Income before taxes and equity method investments

$

58,436

$

72,092

$

39,279

$

75,053

(1)All intercompany transactions are not material and have been eliminated.
(2)Includes $51 million and $3.7 million of IEEPA tariff refunds in both the three and six months ended August 1, 2026 for RH Segment and Waterworks, respectively.
(3)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

SIX MONTHS ENDED

AUGUST 1,

AUGUST 2,

AUGUST 1,

AUGUST 2,

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

(in thousands)

RH Segment

$

39,187

$

32,879

$

76,314

$

66,740

Waterworks

1,744

1,750

3,364

3,125

Real Estate(1)

Total depreciation and amortization

 

$

40,931

 

$

34,629

 

$

79,678

 

$

69,865

(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

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

August 1, 2026

RH Segment

$

144,205

$

63,161

$

$

4,829,247

Waterworks

17,000

4,912

200,884

Real Estate

64,231

100,969

Total

$

144,205

$

80,161

$

69,143

$

5,131,100

(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.
Schedule of retail locations and outlets outside the United States As of August 1, 2026, we operated the following number of retail locations and outlets outside the United States:

COUNT

Canada

6

United Kingdom

4

France

3

Germany

2

Belgium

1

Italy

1

Spain

1

Total(1)

18

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