In This Story
RH (RH-2.17%) has filed its Form 10-K filing for the fiscal year ended February 1, 2025.
The filing reports net revenues of $3.18 billion, a 5.0% increase from the previous year. The growth was primarily driven by higher revenue in the core business and increased Sourcebook circulation.
Cost of goods sold was $1.77 billion, resulting in a gross profit of $1.41 billion, with a gross margin of 44.5%, down from 45.9% the previous year.
Selling, general and administrative expenses increased to $1.09 billion, representing 34.4% of net revenues, compared to 33.8% the previous year. The increase was due to higher compensation costs and new Gallery openings.
Operating income was reported at $322.6 million, down from $366.1 million the previous year.
Interest expense increased to $230.6 million, primarily due to higher borrowings under the term loan.
Net income for the year was $72.4 million, compared to $127.6 million the previous year. The decrease in net income was attributed to higher interest expenses and increased operating costs.
The company reported adjusted EBITDA of $539.1 million, down from $550.9 million the previous year.
RH continues to focus on its key strategies, including product elevation, Gallery transformation, brand elevation, global expansion, and digital reimagination.
The filing outlines various risk factors, including competition in the home furnishings sector, reliance on foreign manufacturing, and potential impacts of macroeconomic conditions.
The report also details RH's significant capital expenditures, which were $282 million for the year, primarily related to new Gallery openings and infrastructure investments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the RH annual 10-K report dated April 2, 2025. To report an error, please email earnings@qz.com.