SEGMENT REPORTING (Tables)

12 Months Ended

Feb. 01, 2025

SEGMENT REPORTING

Schedule of net revenues in accordance with ASC 606, significant segment expenses and segment adjusted operating income - reportable segment

	YEAR ENDED
	FEBRUARY 1,						FEBRUARY 3,						JANUARY 28,
	2025						2024						2023
	RH SEGMENT		WATERWORKS		TOTAL(1)		RH SEGMENT		WATERWORKS		TOTAL		RH SEGMENT		WATERWORKS		TOTAL
	(in thousands)
Net revenues	$	2,987,818		192,935		3,180,753	$	2,835,617		193,509		3,029,126	$	3,398,638		191,839		3,590,477
Cost of goods sold		1,674,644		91,177		1,765,821		1,549,510		90,597		1,640,107		1,690,194		88,298		1,778,492
Advertising expense		119,238		3,243		122,481		103,690		3,210		106,900		68,143		2,860		71,003
Other segment expenses(2)		857,742		76,471		934,213		812,959		75,373		888,332		878,757		72,399		951,156
Segment adjusted operating income(1)		336,194		22,044		358,238		369,458		24,329		393,787		761,544		28,282		789,826
Asset impairments						36,071						3,531						24,186
Non-cash compensation						4,532						9,640						18,072
Reorganization related costs						4,423						7,621						—
Legal settlements—net						(9,375)						8,500						(4,188)
Recall accrual						—						(1,576)						560
Employer payroll taxes on option exercises						—						—						14,392
Professional fees						—						—						7,469
Non-cash compensation related to consolidated VIEs						—						—						4,470
Compensation settlements						—						—						3,483
Gain on sale of building and land						—						—						(775)
Income from operations						322,587						366,071						722,157
Interest expense—net						230,601						198,296						113,210
Loss on extinguishment of debt						—						—						169,578
Other expense—net						3,395						1,078						30
Income before taxes and equity method investments					$	88,591					$	166,697					$	439,339

(1) All intercompany transactions are immaterial and have been eliminated.

(2) Other segment expenses primarily include compensation and occupancy costs classified as selling, general and administrative expenses, and other general and administrative expenses.

Schedule of depreciation and amortization for our segments

	YEAR ENDED
	FEBRUARY 1,		FEBRUARY 3,		JANUARY 28,
	2025		2024		2023
	(in thousands)
RH Segment	$	124,156	$	113,695	$	103,221
Waterworks		6,035		5,294		5,367
Real Estate(1)		—		—		—
Total depreciation and amortization	$	130,191	$	118,989	$	108,588

(1) There is no expense for the Real Estate segment since all assets represent construction in progress.

Schedule of balance sheet information for our segments

	FEBRUARY 1,								FEBRUARY 3,
	2025								2024
	RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL		RH SEGMENT		WATERWORKS		REAL ESTATE		TOTAL
	(in thousands)
Goodwill(1)	$	140,943	$	—	$	—	$	140,943	$	141,033	$	—	$	—	$	141,033
Tradenames, trademarks and other intangible assets(2)		59,118		17,000		—		76,118		58,927		17,000		—		75,927
Equity method investments(3)		—		3,276		123,633		126,909		—		3,609		125,059		128,668
Total assets		4,228,829		165,442		160,418		4,554,689		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. Refer to Note 7—Variable Interest Entities related to the Real Estate segment equity method investments.

Schedule of retail locations and outlets outside the United States

	COUNT
Canada	4
United Kingdom	3
Germany	2
Belgium	1
Spain	1
Total(1)	11

(1) Geographic revenues generated outside of the United States did not exceed 10% of total consolidated net revenues in any fiscal period presented.

Schedule of long-lived assets by geography information

	FEBRUARY 1,		FEBRUARY 3,
	2025		2024
	(in thousands)
North America	$	2,514,275	$	2,359,839
All other countries		365,678		313,134
Total long-lived assets	$	2,879,953	$	2,672,973