SEGMENT REPORTING (Tables)

9 Months Ended

Nov. 02, 2024

SEGMENT REPORTING

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

	THREE MONTHS ENDED				NINE MONTHS ENDED
	NOVEMBER 2,		OCTOBER 28,		NOVEMBER 2,		OCTOBER 28,
	2024		2023		2024		2023
	(in thousands)
Operating income:
RH Segment	$	118,790	$	50,200	$	250,748	$	307,590
Waterworks		3,084		4,963		15,349		19,329
Total segment operating income		121,874		55,163		266,097		326,919
Asset impairments		(19,545)		(3,531)		(19,545)		(3,531)
Non-cash compensation		(861)		(1,972)		(3,669)		(7,527)
Legal settlements—net		—		—		9,375		(8,000)
Reorganization related costs		—		—		—		(7,621)
Recall accrual		—		1,576		—		1,576
Income from operations		101,468		51,236		252,258		301,816
Interest expense—net		57,590		54,640		173,624		138,878
Other expense—net		27		5,305		529		4,466
Income (loss) before income taxes and equity method investments	$	43,851	$	(8,709)	$	78,105	$	158,472

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

	THREE MONTHS ENDED
	NOVEMBER 2,						OCTOBER 28,
	2024						2023
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	768,063	$	43,669	$	811,732	$	705,061	$	46,164	$	751,225
Gross profit		338,942		22,398		361,340		315,980		24,470		340,450
Depreciation and amortization		31,428		1,570		32,998		27,533		921		28,454

	NINE MONTHS ENDED
	NOVEMBER 2,						OCTOBER 28,
	2024						2023
	RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	2,226,054	$	142,293	$	2,368,347	$	2,146,192	$	144,674	$	2,290,866
Gross profit		977,374		74,761		1,052,135		990,490		77,578		1,068,068
Depreciation and amortization		91,429		4,653		96,082		80,786		3,574		84,360

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

	NOVEMBER 2,								FEBRUARY 3,
	2024								2024
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	140,990	$	—	$	—	$	140,990	$	141,033	$	—	$	—	$	141,033
Tradenames, trademarks and other intangible assets(2)		59,473		17,000		—		76,473		58,927		17,000		—		75,927
Equity method investments(3)		—		3,383		126,178		129,561		—		3,609		125,059		128,668
Total assets		4,110,666		190,577		162,979		4,464,222		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				NINE MONTHS ENDED
	NOVEMBER 2,		OCTOBER 28,		NOVEMBER 2,		OCTOBER 28,
	2024		2023		2024		2023
	(in thousands)
Furniture	$	579,553	$	518,923	$	1,678,638	$	1,575,916
Non-furniture		232,179		232,302		689,709		714,950
Total net revenues	$	811,732	$	751,225	$	2,368,347	$	2,290,866