SEGMENT REPORTING (Tables)

6 Months Ended

Aug. 03, 2024

SEGMENT REPORTING

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

	THREE MONTHS ENDED				SIX MONTHS ENDED
	AUGUST 3,		JULY 29,		AUGUST 3,		JULY 29,
	2024		2023		2024		2023
	(in thousands)
Operating income:
RH Segment	$	90,527	$	153,369	$	131,958	$	257,090
Waterworks		6,461		7,995		12,265		14,666
Total segment operating income		96,988		161,364		144,223		271,756
Legal settlements—net		—		(8,000)		9,375		(8,000)
Non-cash compensation		(861)		(2,024)		(2,808)		(5,555)
Reorganization related costs		—		—		—		(7,621)
Income from operations		96,127		151,340		150,790		250,580
Interest expense—net		59,262		44,422		116,034		84,238
Other (income) expense—net		(663)		(186)		502		(839)
Income before taxes and equity method investments	$	37,528	$	107,104	$	34,254	$	167,181

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

	THREE MONTHS ENDED
	AUGUST 3,						JULY 29,
	2024						2023
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	780,925	$	48,730	$	829,655	$	753,550	$	46,929	$	800,479
Gross profit		348,624		26,133		374,757		354,425		25,648		380,073
Depreciation and amortization		30,618		1,639		32,257		26,828		1,308		28,136

	SIX MONTHS ENDED
	AUGUST 3,						JULY 29,
	2024						2023
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	1,457,991	$	98,624	$	1,556,615	$	1,444,066	$	95,575	$	1,539,641
Gross profit		638,432		52,363		690,795		676,009		51,609		727,618
Depreciation and amortization		60,001		3,083		63,084		53,253		2,653		55,906

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

The following table presents selected balance sheet metrics for our segments:

	AUGUST 3,								FEBRUARY 3,
	2024								2024
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	140,997	$	—	$	—	$	140,997	$	141,033	$	—	$	—	$	141,033
Tradenames, trademarks and other intangible assets(2)		59,243		17,000		—		76,243		58,927		17,000		—		75,927
Equity method investments(3)		—		3,011		127,779		130,790		—		3,609		125,059		128,668
Total assets		4,022,273		189,535		164,588		4,376,396		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.

Summary of net revenues

	THREE MONTHS ENDED				SIX MONTHS ENDED
	AUGUST 3,		JULY 29,		AUGUST 3,		JULY 29,
	2024		2023		2024		2023
	(in thousands)
Furniture	$	593,814	$	560,602	$	1,099,085	$	1,056,993
Non-furniture		235,841		239,877		457,530		482,648
Total net revenues	$	829,655	$	800,479	$	1,556,615	$	1,539,641