SEGMENT REPORTING (Tables)

3 Months Ended

May 04, 2024

SEGMENT REPORTING

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

	THREE MONTHS ENDED
	MAY 4,		APRIL 29,
	2024		2023
	(in thousands)
Operating income:
RH Segment	$	41,431	$	103,721
Waterworks		5,804		6,671
Total segment operating income		47,235		110,392
Legal settlements—net		9,375		—
Non-cash compensation		(1,947)		(3,531)
Reorganization related costs		—		(7,621)
Income from operations		54,663		99,240
Interest expense—net		56,772		39,816
Other (income) expense—net		1,165		(653)
Income (loss) before income taxes and equity method investments	$	(3,274)	$	60,077

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

	THREE MONTHS ENDED
	MAY 4,						APRIL 29,
	2024						2023
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	677,066	$	49,894	$	726,960	$	690,516	$	48,646	$	739,162
Gross profit		289,808		26,230		316,038		321,584		25,961		347,545
Depreciation and amortization		29,383		1,444		30,827		26,425		1,345		27,770

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

	MAY 4,								FEBRUARY 3,
	2024								2024
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	141,013	$	—	$	—	$	141,013	$	141,033	$	—	$	—	$	141,033
Tradenames, trademarks and other intangible assets(2)		59,053		17,000		—		76,053		58,927		17,000		—		75,927
Equity method investments(3)		—		4,008		124,900		128,908		—		3,609		125,059		128,668
Total assets		3,836,347		188,213		161,979		4,186,539		3,798,572		183,804		161,521		4,143,897

(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.

(3) The Waterworks segment balance represents membership interests in two European entities, whereby we hold a 50 percent membership interest in one entity and an approximately 25 percent membership interest in the other, and we are not the primary beneficiary of these VIEs.

Summary of net revenues

	THREE MONTHS ENDED
	MAY 4,		APRIL 29,
	2024		2023
	(in thousands)
Furniture	$	505,271	$	496,391
Non-furniture		221,689		242,771
Total net revenues	$	726,960	$	739,162