Segment Reporting (Tables)

9 Months Ended

Oct. 28, 2023

Segment Reporting

Schedule of Segment Operating Income and Income Before Income Taxes and Equity Method Investments

	THREE MONTHS ENDED				NINE MONTHS ENDED
	OCTOBER 28,		OCTOBER 29,		OCTOBER 28,		OCTOBER 29,
	2023		2022		2023		2022
	(in thousands)
Operating income:
RH Segment	$	50,200	$	173,162	$	307,590	$	639,219
Waterworks		4,963		7,187		19,329		22,394
Total segment operating income		55,163		180,349		326,919		661,613
Legal settlements		—		4,188		(8,000)		4,188
Reorganization related costs		—		—		(7,621)		—
Non-cash compensation		(1,972)		(4,136)		(7,527)		(14,315)
Asset impairments		(3,531)		(10,926)		(3,531)		(19,080)
Recall accrual		1,576		—		1,576		(560)
Employer payroll taxes on option exercise		—		—		—		(11,717)
Professional fees		—		—		—		(7,469)
Compensation settlements		—		—		—		(3,483)
Gain on sale of building and land		—		775		—		775
Income from operations		51,236		170,250		301,816		609,952
Interest expense—net		54,640		31,417		138,878		78,536
Loss on extinguishment of debt		—		—		—		169,578
Other expense—net		5,305		1,989		4,466		4,841
Income (loss) before income taxes and equity method investments	$	(8,709)	$	136,844	$	158,472	$	356,997

Summary of Statements of Income Metrics Reviewed by CODM to Evaluate Performance Internally or As required under ASC 280 - Segment Reporting

	THREE MONTHS ENDED
	OCTOBER 28,						OCTOBER 29,
	2023						2022
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	705,061	$	46,164	$	751,225	$	821,260	$	47,806	$	869,066
Gross profit		315,980		24,470		340,450		394,947		25,831		420,778
Depreciation and amortization		27,533		921		28,454		26,785		1,247		28,032

	NINE MONTHS ENDED
	OCTOBER 28,						OCTOBER 29,
	2023						2022
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	2,146,192	$	144,674	$	2,290,866	$	2,670,390	$	147,588	$	2,817,978
Gross profit		990,490		77,578		1,068,068		1,362,843		79,736		1,442,579
Depreciation and amortization		80,786		3,574		84,360		75,980		3,780		79,760

Summary of Balance Sheet Metrics as Required Under ASC 280 - Segment Reporting

The following table presents the financial position metrics as required under ASC 280—Segment Reporting:

	OCTOBER 28,								JANUARY 28,
	2023								2023
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	140,997	$	—	$	—	$	140,997	$	141,048	$	—	$	—	$	141,048
Tradenames, trademarks and other intangible assets(2)		58,746		17,000		—		75,746		57,633		17,000		—		74,633
Equity method investments		—		858		127,254		128,112		—		623		100,845		101,468
Total assets		3,833,341		243,351		163,927		4,240,619		4,953,610		217,228		138,451		5,309,289

(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.

Summary of net revenues

	THREE MONTHS ENDED				NINE MONTHS ENDED
	OCTOBER 28,		OCTOBER 29,		OCTOBER 28,		OCTOBER 29,
	2023		2022		2023		2022
	(in thousands)
Furniture	$	518,923	$	597,520	$	1,575,916	$	1,959,760
Non-furniture		232,302		271,546		714,950		858,218
Total net revenues	$	751,225	$	869,066	$	2,290,866	$	2,817,978