RHHIGH SIGNALFINANCIAL10-K

RH dramatically reduced share buyback activity from $1.3B to $12.0M while expanding hospitality operations and launching new product collections.

The 99% reduction in share buybacks represents a fundamental shift in capital allocation strategy, suggesting management is prioritizing operational investments over returning cash to shareholders. The removal of language about material weaknesses in internal controls indicates improved financial reporting capabilities, while expansion of hospitality locations from 21 to 25 signals continued growth investment.

Comparing 2026-04-01 vs 2025-04-02View on EDGAR →
FINANCIAL ANALYSIS

RH delivered solid operational performance with revenue growing 24.5% to $1.2B and substantially higher net income reaching $124.8M. Operating income expanded 20.1% to $387.3M, demonstrating effective operational leverage. However, the dramatic pullback in share buybacks from $1.3B to just $12.0M represents a major capital allocation shift that will significantly impact shareholder returns going forward.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-99%
$1.3B$12.0M

Buyback activity reduced 99% — capital being redeployed elsewhere or cash conservation underway.

Net Income
P&L
+72.3%
$72.4M$124.8M

Net income grew 72.3% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
+35.4%
$30.4M$41.2M

Cash position surged 35.4% — strong cash generation or capital raise providing significant financial cushion.

Revenue
P&L
+24.5%
$958.1M$1.2B

Revenue growing 24.5% — solid top-line momentum, watch margins for quality of growth.

Operating Income
P&L
+20.1%
$322.6M$387.3M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Current Assets
Balance Sheet
-14.2%
$1.3B$1.1B

Current assets declined 14.2% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-04-01
PRIOR — 2025-04-02
ADDED
As of March 27, 2026, 18,834,576 shares of the registrant s common stock were outstanding.
Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant s fiscal year ended January 31, 2026.
We may be adversely affected by any disruptions in our ability to obtain quality merchandise in sufficient quantities at competitive prices, including products that are produced by artisans and specialty vendors.
We are subject to risks related to our reliance upon independent third-party transportation providers for the majority of our product shipments.
We operate our retail locations throughout the United States, Canada and Europe, and we have an integrated RH Hospitality experience in 25 of our Design Gallery locations, which includes restaurants and wine bars.
Beginning with the mailing of our RH Interiors Sourcebook in the fall of 2023 and with additional Sourcebook mailings throughout 2024 and 2025, we have introduced the most prolific collection of new products in our history, which will continue with the spring 2026 launch of RH Estates, featuring RH Bespoke furniture and RH Couture upholstery.
We believe our strategy to open new Design Galleries in every major market in the United States and Canada will unlock the value of our vast assortment, generating an expected total annual revenue opportunity of $5 to $6 billion.
In June 2023, we opened RH England, The Gallery at the Historic Aynho Park, a 400-year-old landmark estate representing one of the most inspiring and immersive physical expressions of the brand.
In September 2025, we opened RH Paris, The Gallery on the Champs- lys es, located just off the Avenue Montaigne, which stands at the global epicenter of fashion and luxury.
We believe the opening of RH Paris marks a major step forward in the European expansion of our business.
REMOVED
As of March 28, 2025, 18,728,456 shares of the registrant s common stock were outstanding.
Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant s fiscal year ended February 1, 2025.
We previously identified a material weakness in our internal control over financial reporting and related weakness in our disclosure controls and procedures and there can be no assurance that our reporting infrastructure and personnel involved in financial reporting and disclosure controls and procedures have in the past complied, or will continue in the future to comply, with all of our applicable reporting obligations.
We are subject to risks associated with our dependence on foreign manufacturing and imports.
We are subject to risks related to our reliance upon independent third-party transportation providers for our product shipments.
We operate our retail locations throughout the United States and Canada as well as in the United Kingdom, Germany, Belgium and Spain and we have an integrated RH Hospitality experience in 21 of our Design Gallery locations, which includes restaurants and wine bars.
Beginning with the mailing of our RH Interiors Sourcebook in the fall of 2023 and with additional Sourcebook mailings throughout 2024, we have introduced the most prolific collection of new products in our history.
In addition, over the next few years, we plan to introduce RH Couture, RH Bespoke and RH Color.
We believe our strategy to open new Design Galleries in every major market in North America will unlock the value of our vast assortment, generating an expected annual revenue opportunity for our business of $5 to $6 billion.
In June 2023, we opened RH England, The Gallery at the Historic Aynho Park, a 400-year-old landmark estate representing the most inspiring and immersive physical expression of the brand to date.
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