2023 Q1 Form 10-K Financial Statement

#000155837023004942 Filed on March 29, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2023
Revenue $772.5M $3.590B
YoY Change -14.43% -4.48%
Cost Of Revenue $403.1M $1.778B
YoY Change -9.87% -6.56%
Gross Profit $369.4M $1.812B
YoY Change -18.9% -2.34%
Gross Profit Margin 47.82% 50.47%
Selling, General & Admin $257.2M $1.090B
YoY Change 8.19% 17.41%
% of Gross Profit 69.63% 60.15%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $28.83M $56.00M
YoY Change 16.96% 7.69%
% of Gross Profit 7.8% 3.09%
Operating Expenses $257.2M $1.090B
YoY Change 8.19% 17.41%
Operating Profit $112.2M $722.2M
YoY Change -48.47% -22.11%
Interest Expense -$26.37M $113.2M
YoY Change 6.2% 74.31%
% of Operating Profit -23.51% 15.68%
Other Income/Expense, Net -$3.489M $282.8M
YoY Change 25.59% 191.98%
Pretax Income $82.34M $437.3M
YoY Change -54.95% -46.81%
Income Tax -$20.49M -$91.36M
% Of Pretax Income -24.89% -20.89%
Net Earnings $106.9M $528.6M
YoY Change -27.3% -23.22%
Net Earnings / Revenue 13.84% 14.72%
Basic Earnings Per Share $22.47
Diluted Earnings Per Share $4.37 $19.90
COMMON SHARES
Basic Shares Outstanding 22.05M 23.52M
Diluted Shares Outstanding 26.56M

Balance Sheet

Concept 2023 Q1 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.508B $1.508B
YoY Change -30.75% -30.75%
Cash & Equivalents $1.508B $1.508B
Short-Term Investments
Other Short-Term Assets $26.25M $107.0M
YoY Change -73.11% 9.6%
Inventory $801.8M $801.8M
Prepaid Expenses $24.35M
Receivables $59.76M $59.76M
Other Receivables $35.99M $35.99M
Total Short-Term Assets $2.513B $2.513B
YoY Change -18.72% -18.72%
LONG-TERM ASSETS
Property, Plant & Equipment $1.636B $2.163B
YoY Change 33.23% 21.6%
Goodwill $141.0M
YoY Change -0.04%
Intangibles
YoY Change
Long-Term Investments $101.5M $101.5M
YoY Change 0.65% 0.65%
Other Assets $149.2M $316.2M
YoY Change -49.96% -10.91%
Total Long-Term Assets $2.797B $2.797B
YoY Change 14.19% 14.19%
TOTAL ASSETS
Total Short-Term Assets $2.513B $2.513B
Total Long-Term Assets $2.797B $2.797B
Total Assets $5.309B $5.309B
YoY Change -4.17% -4.17%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $166.1M $166.1M
YoY Change -31.38% -31.38%
Accrued Expenses $289.3M $289.3M
YoY Change 5.5% 5.5%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.160M $44.86M
YoY Change -91.49% -27.79%
Total Short-Term Liabilities $886.0M $886.0M
YoY Change -16.71% -16.71%
LONG-TERM LIABILITIES
Long-Term Debt $3.118B $3.118B
YoY Change 276114.08% 13.06%
Other Long-Term Liabilities $8.074M $513.9M
YoY Change -7.26% -6.24%
Total Long-Term Liabilities $8.074M $3.632B
YoY Change -17.91% 9.86%
TOTAL LIABILITIES
Total Short-Term Liabilities $886.0M $886.0M
Total Long-Term Liabilities $8.074M $3.632B
Total Liabilities $4.525B $4.525B
YoY Change 3.53% 3.53%
SHAREHOLDERS EQUITY
Retained Earnings $540.0M
YoY Change -2.02%
Common Stock $2.000K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $784.7M $784.7M
YoY Change
Total Liabilities & Shareholders Equity $5.309B $5.309B
YoY Change -4.17% -4.17%

Cashflow Statement

Concept 2023 Q1 2023
OPERATING ACTIVITIES
Net Income $106.9M $528.6M
YoY Change -27.3% -23.22%
Depreciation, Depletion And Amortization $28.83M $56.00M
YoY Change 16.96% 7.69%
Cash From Operating Activities $67.67M $403.7M
YoY Change -47.31% -39.03%
INVESTING ACTIVITIES
Capital Expenditures $63.97M $173.6M
YoY Change -302.37% -6.33%
Acquisitions
YoY Change
Other Investing Activities -$400.0K $2.574M
YoY Change -90.37% -128.7%
Cash From Investing Activities -$64.37M -$171.1M
YoY Change 79.98% -11.98%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.000B
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -646.8M -902.5M
YoY Change 465.45% -156.15%
NET CHANGE
Cash From Operating Activities 67.67M 403.7M
Cash From Investing Activities -64.37M -171.1M
Cash From Financing Activities -646.8M -902.5M
Net Change In Cash -643.5M -670.1M
YoY Change 2862.97% -132.3%
FREE CASH FLOW
Cash From Operating Activities $67.67M $403.7M
Capital Expenditures $63.97M $173.6M
Free Cash Flow $3.699M $230.0M
YoY Change -97.69% -51.75%

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CY2023 rh Reclassification Of Assets From Landlord Assets Under Construction To Finance Lease Right Of Use Assets
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CY2022 rh Reclassification Of Assets From Landlord Assets Under Construction To Finance Lease Right Of Use Assets
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CY2021 rh Reclassification Of Assets From Landlord Assets Under Construction To Finance Lease Right Of Use Assets
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CY2023 rh Financing Liability And Embedded Derivative Arising From Convertible Senior Notes Repurchase
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CY2021 rh Exercise Of Option Amount Settled Convertible
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CY2021 us-gaap Consideration Received For Beneficial Interest Obtained For Transferring Financial Asset
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CY2021 us-gaap Debt Conversion Converted Instrument Amount1
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CY2022 rh Provision For Sales Returns
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CY2023 us-gaap Nature Of Operations
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<p style="font-family:'Times New Roman','Times','serif';font-size:11pt;margin:26pt 0pt 8pt 0pt;">NOTE 1—NATURE OF BUSINESS</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 9pt 0pt;">RH, a Delaware corporation, together with its subsidiaries (collectively, “we,” “us,” or the “Company”), is a leading retailer and luxury lifestyle brand operating primarily in the home furnishings market. Our curated and fully integrated assortments are presented consistently across our sales channels, including our retail locations, websites and Source Books. We offer merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and baby, child and teen furnishings. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt;">As of January 28, 2023, we operated a total of 67 RH Galleries and 37 RH outlet stores in 31 states, the District of Columbia and Canada, as well as 14 Waterworks Showrooms throughout the United States and in the U.K., and had sourcing operations in Shanghai and Hong Kong. In September 2022, we opened our first RH Guesthouse in New York.</p>
CY2023Q1 rh Number Of Galleries
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67
CY2023Q1 rh Number Of Outlet Stores
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37
CY2023Q1 us-gaap Number Of States In Which Entity Operates
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31
CY2023Q1 rh Number Of Waterworks Showrooms
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14
CY2023 us-gaap Fiscal Period
FiscalPeriod
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 2pt 0pt;">Fiscal Years</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 9pt 0pt;">Our fiscal year ends on the Saturday closest to January 31. As a result, our fiscal year may include 53 weeks. Our fiscal years ended January 28, 2023 (“fiscal 2022”), January 29, 2022 (“fiscal 2021”) and January 30, 2021 (“fiscal 2020”) each consisted of 52 weeks. Our next 53-week fiscal year is the fiscal year ending February 3, 2024 (“fiscal 2023”).</p>
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:12pt 0pt 2pt 0pt;">Use of Accounting Estimates</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 9pt 0pt;">The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material to the consolidated financial statements.</p>
CY2021 rh Provision For Sales Returns
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:12pt 0pt 2pt 0pt;">Concentration of Credit Risk</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 9pt 0pt;">We maintain our cash and cash equivalent accounts in high-quality financial institutions. The amount of cash and cash equivalents held with certain financial institutions exceeds government-insured limits. We perform ongoing evaluations of these institutions to limit our concentration of credit risk.</p>
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As of January 28, 2023, RHI was in compliance with the FCCR Covenant.
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1102657000
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
280060000
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
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CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
18071000
CY2021 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
12429000
CY2023Q1 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions
3415952
CY2023Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Exercise Price Beginning Balance1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1
180.03
CY2023Q1 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
2457767
CY2023Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Exercise Price1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1
160.25
CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
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CY2023Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
175.84
CY2023 us-gaap Defined Contribution Plan Employer Matching Contribution Percent
DefinedContributionPlanEmployerMatchingContributionPercent
0
CY2023Q1 us-gaap Fair Value Disclosure Offbalance Sheet Risks Amount Liability
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0
CY2023 us-gaap Number Of Operating Segments
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CY2023 us-gaap Asset Impairment Charges
AssetImpairmentCharges
24186000
CY2022 us-gaap Asset Impairment Charges
AssetImpairmentCharges
9630000
CY2021 rh Asset Impairments And Lease Losses
AssetImpairmentsAndLeaseLosses
12851000
CY2023 us-gaap Deferred Compensation Arrangement With Individual Compensation Expense
DeferredCompensationArrangementWithIndividualCompensationExpense
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CY2022 us-gaap Deferred Compensation Arrangement With Individual Compensation Expense
DeferredCompensationArrangementWithIndividualCompensationExpense
23428000
CY2021 us-gaap Deferred Compensation Arrangement With Individual Compensation Expense
DeferredCompensationArrangementWithIndividualCompensationExpense
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CY2023 rh Employer Payroll Taxes On Option Exercise
EmployerPayrollTaxesOnOptionExercise
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CY2023 us-gaap Professional Fees
ProfessionalFees
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CY2023 us-gaap Compensation Expense Excluding Cost Of Good And Service Sold
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4470000
CY2023 us-gaap Labor And Related Expense
LaborAndRelatedExpense
3483000
CY2023 rh Inventory Recall Expense Net
InventoryRecallExpenseNet
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CY2022 rh Inventory Recall Expense Net
InventoryRecallExpenseNet
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CY2021 rh Inventory Recall Expense Net
InventoryRecallExpenseNet
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CY2023 us-gaap Proceeds From Legal Settlements
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4188000
CY2023 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
775000
CY2021 us-gaap Sale And Leaseback Transaction Gain Loss Net
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CY2022 us-gaap Business Combination Acquisition Related Costs
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CY2021 us-gaap Business Combination Acquisition Related Costs
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CY2021 us-gaap Operating Income Loss
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CY2022 us-gaap Interest Expense
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CY2021 us-gaap Interest Expense
InterestExpense
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CY2023 us-gaap Gains Losses On Extinguishment Of Debt
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CY2022 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-29138000
CY2021 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
152000
CY2023 rh Other Expense Net
OtherExpenseNet
30000
CY2022 rh Other Expense Net
OtherExpenseNet
2778000
CY2021 rh Other Expense Net
OtherExpenseNet
20459000
CY2023 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
439339000
CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
830318000
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
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CY2023 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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CY2022 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
3758820000
CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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CY2023 us-gaap Gross Profit
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CY2022 us-gaap Gross Profit
GrossProfit
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CY2021 us-gaap Gross Profit
GrossProfit
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CY2023 us-gaap Depreciation And Amortization
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CY2022 us-gaap Depreciation And Amortization
DepreciationAndAmortization
96022000
CY2021 us-gaap Depreciation And Amortization
DepreciationAndAmortization
100040000
CY2023Q1 us-gaap Goodwill
Goodwill
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CY2022Q1 us-gaap Goodwill
Goodwill
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CY2023Q1 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
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74633000
CY2022Q1 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
IndefiniteLivedIntangibleAssetsExcludingGoodwill
73161000
CY2023Q1 us-gaap Equity Method Investments
EquityMethodInvestments
101468000
CY2022Q1 us-gaap Equity Method Investments
EquityMethodInvestments
100810000
CY2023Q1 us-gaap Assets
Assets
5309289000
CY2022Q1 us-gaap Assets
Assets
5540470000
CY2023 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
3590477000
CY2022 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
3758820000
CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
2848626000
CY2023 rh Entity Wide Revenue Major Customer Number
EntityWideRevenueMajorCustomerNumber
0
CY2023Q1 us-gaap Noncurrent Assets
NoncurrentAssets
2446029000

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