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RH

Rh

RH

Rh • NYSE
$157.59 ▼ -1.16% (-1.85)
Market Cap $2.95 B
52w High $457.26
52w Low $123.03
Dividend Yield 0%
P/E 29.4
Volume 419.64K
Outstanding Shares 18.74M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $899.151M ▲ $280.383M ▼ $51.708M ▲ 5.751% ▲ $2.76 ▲ $128.876M ▲
Q1-2025 $813.952M ▲ $299.422M ▲ $8.039M ▼ 0.988% ▼ $0.43 ▼ $96.381M ▼
Q4-2024 $812.406M ▲ $292.468M ▲ $13.917M ▼ 1.713% ▼ $0.75 ▼ $102.504M ▼
Q3-2024 $811.732M ▼ $259.872M ▼ $33.168M ▲ 4.086% ▲ $1.79 ▲ $135.491M ▲
Q2-2024 $829.655M $278.63M $28.952M 3.49% $1.57 $129.898M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $34.56M ▼ $4.697B ▲ $4.738B ▼ $-40.9M ▲
Q1-2025 $46.084M ▲ $4.65B ▲ $4.761B ▲ $-110.768M ▲
Q4-2024 $30.413M ▼ $4.555B ▲ $4.718B ▲ $-163.589M ▲
Q3-2024 $87.012M ▲ $4.464B ▲ $4.647B ▲ $-183.009M ▲
Q2-2024 $78.333M $4.376B $4.611B $-234.717M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $51.708M ▲ $137.678M ▲ $-89.106M ▼ $27.002M ▲ $0 ▼ $83.447M ▲
Q1-2025 $8.039M ▼ $86.641M ▲ $-45.042M ▲ $-27.002M ▼ $15.671M ▲ $31.307M ▲
Q4-2024 $13.917M ▼ $-18.774M ▲ $-50.892M ▲ $13.828M ▼ $-56.599M ▼ $-69.665M ▲
Q3-2024 $33.168M ▲ $-31.437M ▼ $-64.754M ▼ $104.896M ▲ $8.679M ▲ $-95.994M ▼
Q2-2024 $28.952M $11.176M $-55.82M $20.778M $-23.454M $-37.903M

Revenue by Products

Product Q2-2024Q3-2024Q1-2025Q2-2025
RH Segment
RH Segment
 $0 ▲$0 ▲$760.00M ▲$850.00M ▲
Waterworks
Waterworks
 $0 ▲$0 ▲$50.00M ▲$50.00M ▲
Furniture
Furniture
 $590.00M ▲$580.00M ▼$0 ▼$0 ▲
Nonfurniture
Nonfurniture
 $240.00M ▲$230.00M ▼$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement RH’s sales climbed strongly through the pandemic housing boom, then slipped from their peak and have only recently started to stabilize. Revenue today is somewhat below its best year, which suggests the business is still digesting a softer luxury home-furnishings environment. Profitability is the key pressure point. Margins were very high a few years ago but have compressed meaningfully. Operating profit and especially net income have stepped down year after year since their peak, and earnings per share are now only a small fraction of what they were at the height of the cycle. RH still earns money, but the cushion is much thinner, leaving less room for operational missteps or further demand softness. Overall, the income statement tells a story of a premium brand that benefited heavily from a unique demand surge and is now navigating a more normal, possibly tougher, backdrop with significantly lower profitability than before.

Balance Sheet

Balance Sheet RH runs with a balance sheet that leans heavily on debt and has very little cash on hand compared with a couple of years ago. The company once held a substantial cash buffer but has drawn that down, which reduces financial flexibility. Shareholders’ equity has recently turned negative, which often reflects aggressive share repurchases and leverage rather than an operational collapse, but it still points to a capital structure that is more financially stretched. Total assets have edged down from their highs, suggesting some balance-sheet tightening, but debt has remained elevated. In plain terms, RH appears to be operating with a bold, highly leveraged balance sheet, which can enhance returns in good times but increases risk if profits remain under pressure or the macro environment worsens.

Cash Flow

Cash Flow RH used to generate strong cash flow from its operations during the boom years, easily covering its investment spending and leaving room for excess cash. More recently, operating cash flow has dropped off notably. At the same time, the company has continued to spend meaningfully on capital projects—such as new galleries and related investments—so free cash flow has swung from comfortably positive to distinctly negative in the most recent years. That means RH is currently investing more cash into the business than it is pulling out from day‑to‑day operations. This pattern highlights a classic tension: the company is funding an ambitious long-term build‑out just as near‑term cash generation has weakened, which raises execution and financing risk if conditions do not improve.

Competitive Edge

Competitive Edge RH occupies a distinctive spot at the very top of the home-furnishings market, competing more as a luxury lifestyle brand than as a traditional furniture retailer. Its large, theatrical design galleries, integrated restaurants and wine bars, and high-touch design services create a curated, aspirational experience that is difficult for mass retailers or online‑only players to copy. The membership model reinforces loyalty and supports pricing power by moving customers away from constant discounts. The direct‑to‑consumer approach, control over the brand, and a consistent aesthetic give RH real differentiation and help protect its margins in normal times. However, the company is highly exposed to affluent consumers’ discretionary spending and to cycles in housing and renovation. The fixed cost base tied to grand galleries and hospitality concepts means downturns can be painful. RH’s moat looks strong from a brand and experience standpoint, but it is built in a cyclical, economically sensitive niche.

Innovation and R&D

Innovation and R&D RH’s innovation is centered on concept and ecosystem design rather than classic technology R&D. The company has reinvented itself from a catalog retailer into a broad luxury platform that spans furniture, interior design services, hospitality, and increasingly, real estate and travel experiences. The design galleries, membership program, and integrated hospitality concepts are all meaningful business-model innovations that deepen customer engagement and differentiate RH from peers. The planned expansion into guesthouses, branded residences, and a new yet‑to‑be‑disclosed brand extension could significantly widen its addressable market if executed well. On the digital side, RH is using customer data and integrated channels to support a seamless experience, but its strategic emphasis clearly tilts toward physical, experiential spaces. The opportunity is large, but so are the execution demands and capital requirements, making innovation a potential growth engine and a key source of risk at the same time.

Summary

RH has transformed itself into a high-end lifestyle brand with a distinctive and difficult‑to‑replicate positioning, but it is currently in a more fragile financial phase. The income statement shows that sales have cooled from their peak and profits have been squeezed, with earnings now much lower than a few years ago. The balance sheet is highly leveraged and carries minimal cash, with negative equity highlighting a more aggressive capital structure. Cash flow has weakened, and recent investment outlays exceed internally generated cash, underlining the importance of a rebound in profitability or access to external funding. Strategically, RH’s brand, galleries, membership model, and expanding ecosystem (guesthouses, residences, and future concepts) give it a powerful competitive identity in the luxury space. At the same time, this model is capital‑intensive and tightly linked to the health of the high‑end consumer and the housing environment. Overall, RH looks like a visionary, brand‑rich business pursuing an ambitious long-term build‑out while managing near‑term financial strain and elevated execution risk.

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