2025 Q1 - Quarterly Report

TableofContents UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington,D.C.20549 FORM10-Q (MarkOne) oQUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthequarterlyperiodendedMay4,2024or ☐TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthetransitionperiodfromtoCommissionfilenumber:001-35720 (Exactnameofregistrantasspecifiedinitscharter) Delaware45-3052669 (Stateorotherjurisdictionofincorporationororganization) 15KochRoad (I.R.S.EmployerIdentificationNumber) CorteMadera,CA94925 (Addressofprincipalexecutiveoffices)(ZipCode) Registrant’stelephonenumber,includingareacode:(415)924-1005SecuritiesregisteredpursuanttoSection12(b)oftheAct: CommonStock,$0.0001parvalue RH NewYorkStockExchange,Inc. (Titleofeachclass) (Tradingsymbol) (Nameofeachexchangeonwhichregistered) Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐ IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐ Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,smallerreportingcompany,oranemerginggrowthcompany.Seedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct. Largeacceleratedfiler ☒ Acceleratedfiler ☐ Non-acceleratedfiler ☐ Smallerreportingcompany ☐ Emerginggrowthcompany ☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐ Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).Yes☐No☒ AsofJune7,2024,18,445,222sharesoftheregistrant’scommonstockwereoutstanding. RH INDEXTOFORM10-Q Page 3 Item1.FinancialStatements PARTI.FINANCIALINFORMATION CondensedConsolidatedBalanceSheets(Unaudited) CondensedConsolidatedStatementsofIncome(Loss)(Unaudited)forthethreemonthsendedMay4,2024andApril29,2023 4 asofMay4,2024andFebruary3,20243 CondensedConsolidatedStatementsofComprehensiveIncome(Loss)(Unaudited) forthethreemonthsendedMay4,2024andApril29,20235 CondensedConsolidatedStatementsofStockholders’Equity(Deficit)(Unaudited) forthethreemonthsendedMay4,2024andApril29,2023 6 CondensedConsolidatedStatementsofCashFlows(Unaudited) forthethreemonthsendedMay4,2024andApril29,2023 7 NotestoCondensedConsolidatedFinancialStatements(Unaudited) 9 Item2. Management’sDiscussionandAnalysisofFinancialConditionandResultsof Operations 29 Item3. QuantitativeandQualitativeDisclosuresaboutMarketRisk 45 Item4. ControlsandProcedures 46 PARTII.OTHERINFORMATION Item1. LegalProceedings 47 Item1A. RiskFactors 47 Item2. UnregisteredSalesofEquitySecuritiesandUseofProceeds 48 Item3. DefaultsUponSeniorSecurities 48 Item4. MineSafetyDisclosures 48 Item5. OtherInformation 48 Item6. Exhibits 49 Signatures 50 TABLEOFCONENTS2024FIRSTQUARTERFORM10-Q|2 PARTI ITEM1.FINANCIALSTATEMENTS RH CONDENSEDCONSOLIDATEDBALANCESHEETS (Unaudited) MAY4, 2024 FEBRUARY3, 2024 (inthousands) ASSETS Cashandcashequivalents $101,787 $123,688 Accountsreceivable—net 62,800 55,058 Merchandiseinventories 802,209 754,126 Prepaidexpenseandothercurrentassets 149,230 169,030 Totalcurrentassets 1,116,026 1,101,902 Propertyandequipment—net 1,693,190 1,685,858 Operatingleaseright-of-useassets 605,664 625,801 Goodwill 141,013 141,033 Tradenames,trademarksandotherintangibleassets 76,053 75,927 Deferredtaxassets 143,980 143,986 Equitymethodinvestments 128,908 128,668 Othernon-currentassets 281,705 240,722 Totalassets $4,186,539 $4,143,897 LIABILITIESANDSTOCKHOLDERS’DEFICIT Accountspayableandaccruedexpenses $407,494 $366,585 Deferredrevenueandcustomerdeposits 315,647 282,812 Convertibleseniornotesdue2024—net 41,862 41,835 Operatingleaseliabilities 85,875 85,523 Othercurrentliabilities 85,613 96,113 Totalcurrentliabilities 936,491 872,868 Assetbasedcreditfacility — — TermloanB—net 1,915,703 1,919,885 TermloanB-2—net 468,531 468,696 Realestateloans—net 17,679 17,766 Non-currentoperatingleaseliabilities 555,651 576,166 Non-currentfinanceleaseliabilities 562,804 566,829 Deferredtaxliabilities 8,419 8,442 Othernon-currentobligations 11,182 10,639 Totalliabilities 4,476,460 4,441,291 Commitmentsandcontingencies(Note16)Stockholders’deficit: Preferredstock—$0.0001parvaluepershare,10,000,000sharesauthorized,nosharesissuedoroutstandingasofMay4,2024andFebruary3,2024 — — Commonstock—$0.0001parvaluepershare,180,000,000sharesauthorized,18,342,797sharesissuedandoutstandingasofMay4,2024;18,315,613sharesi