LEASES (Tables)

6 Months Ended

Aug. 02, 2025

LEASES

Summary of lease costs-net

	THREE MONTHS ENDED				SIX MONTHS ENDED
	AUGUST 2,		AUGUST 3,		AUGUST 2,		AUGUST 3,
	2025		2024		2025		2024
	(in thousands)
Operating lease costs(1)	$	36,447	$	33,357	$	71,893	$	66,238
Finance lease costs
Amortization of leased assets(1)		14,875		12,913		29,548		25,318
Interest on lease liabilities(2)		9,248		7,922		18,193		15,329
Variable lease costs(3)		6,442		6,478		13,629		13,121
Sublease income(4)		(1,189)		(1,179)		(2,371)		(2,333)
Total lease costs—net	$	65,823	$	59,491	$	130,892	$	117,673

(1) Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the condensed consolidated statements of income based on our accounting policy.

(2) Included in interest expense—net on the condensed consolidated statements of income. Amounts include lease cost related to variable lease payments based on an index or rate that were not included in the measurement of the initial lease liability and right-of-use asset for finance leases, which were not material in either period presented.

(3) Represents variable lease payments under operating and finance lease agreements, primarily associated with contingent rent based on a percentage of retail sales over contractual levels of $4.0 million and $3.6 million for the three months ended August 2, 2025 and August 3, 2024, respectively, and $8.1 million and $7.5 million for the six months ended August 2, 2025 and August 3, 2024, respectively, as well as charges associated with common area maintenance of $2.4 million and $2.9 million for the three months ended August 2, 2025 and August 3, 2024, respectively, and $5.5 million and $5.6 million for the six months ended August 2, 2025 and August 3, 2024, respectively. Other variable costs, which include single lease cost related to variable lease payments based on an index or rate that were not included in the measurement of the initial lease liability and right-of-use asset, were not material in any period presented.

(4) Included in selling, general and administrative expenses on the condensed consolidated statements of income.

Summary of lease right-of-use assets and lease liabilities

		AUGUST 2,		FEBRUARY 1,
		2025		2025
		(in thousands)
	Balance Sheet Classification
Assets
Operating leases	Operating lease right-of-use assets	$	638,085	$	617,103
Finance leases(1)(2)(3)	Property and equipment—net		1,052,080		1,007,088
Total lease right-of-use assets		$	1,690,165	$	1,624,191
Liabilities
Current(4)
Operating leases	Operating lease liabilities	$	105,866	$	100,944
Finance leases	Other current liabilities		22,337		21,135
Total lease liabilities—current			128,203		122,079
Non-current
Operating leases	Non-current operating lease liabilities		588,083		573,468
Finance leases	Non-current finance lease liabilities		657,784		630,655
Total lease liabilities—non-current			1,245,867		1,204,123
Total lease liabilities		$	1,374,070	$	1,326,202

(1) Includes capitalized amounts related to our completed construction activities to design and build leased assets, which are reclassified from other non-current assets upon lease commencement.

(2) Recorded net of accumulated amortization of $350 million and $320 million as of August 2, 2025 and February 1, 2025, respectively.

(3) Includes $34 million and $35 million as of August 2, 2025 and February 1, 2025, respectively, related to an RH Design Gallery lease with a landlord that is an affiliate of the managing member of the Aspen LLCs. Refer to Note 6—Variable Interest Entities.

(4) Current portion of lease liabilities represents the reduction of the related lease liability over the next 12 months.

Summary of maturities of lease liabilities

The maturities of lease liabilities were as follows as of August 2, 2025:

	OPERATING		FINANCE
FISCAL YEAR	LEASES		LEASES		TOTAL
	(in thousands)
Remainder of fiscal 2025	$	70,844	$	29,088	$	99,932
2026		138,786		58,932		197,718
2027		126,657		59,740		186,397
2028		90,052		58,902		148,954
2029		77,840		58,605		136,445
2030		68,812		59,654		128,466
Thereafter		392,532		903,937		1,296,469
Total lease payments(1)(2)		965,523		1,228,858		2,194,381
Less—imputed interest(3)		(271,574)		(548,737)		(820,311)
Present value of lease liabilities	$	693,949	$	680,121	$	1,374,070

(1) Total lease payments include future obligations for renewal options that are reasonably certain to be exercised and are included in the measurement of the lease liability. Total lease payments exclude $789 million of legally binding payments under the non-cancellable term for leases signed but not yet commenced under our accounting policy as of August 2, 2025, of which $15 million, $35 million, $44 million, $46 million, $48 million and $49 million will be paid in the remainder of fiscal 2025, fiscal 2026, fiscal 2027, fiscal 2028, fiscal 2029 and fiscal 2030, respectively, and $552 million will be paid subsequent to fiscal 2030.

(2) Excludes an immaterial amount of future commitments under short-term lease agreements.

(3) Calculated using the discount rate for each lease at lease commencement.

Summary of supplemental information related to leases

	SIX MONTHS ENDED
	AUGUST 2,			AUGUST 3,
	2025			2024
Weighted-average remaining lease term (years)
Operating leases		9.2		8.9
Finance leases		20.0		19.7
Weighted-average discount rate
Operating leases		6.1	%	5.5	%
Finance leases		5.9	%	5.3	%

Summary of other information related to leases

	SIX MONTHS ENDED
	AUGUST 2,		AUGUST 3,
	2025		2024
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(70,984)	$	(64,645)
Operating cash flows from finance leases		(18,193)		(15,329)
Financing cash flows from finance leases—net(1)		(8,031)		(11,957)
Total cash outflows from leases	$	(97,208)	$	(91,931)
Non-cash transactions
Lease right-of-use assets obtained in exchange for lease obligations—net of lease terminations
Operating leases(2)	$	61,737	$	45,747
Finance leases		37,947		28,278
Reclassification from other non-current assets to finance lease right-of-use assets		37,502		38,182

(1) Presented net of tenant allowances received subsequent to lease commencement of $6.2 million in the six months ended August 2, 2025. No such payments were received in the six months ended August 3, 2024.

(2) Right-of-use assets obtained in exchange for new operating lease liabilities exclude the impact from acquisitions of $4.3 million for the six months ended August 2, 2025. Refer to Note 3—Business Combinations.