RH Reports Positive Third Quarter Results

RH, a leading home furnishing retailer, recently released its financial results for the third quarter ended November 2, 2024. The company reported GAAP net revenues of $812 million, representing an 8.1% increase. The GAAP operating margin stood at 12.5%, with adjusted operating margin reaching 15.0%. GAAP net income was reported at $33 million, while adjusted net income reached $49 million, with an adjusted EBITDA margin of 20.8%.

During the third quarter, RH experienced a 13% growth in total demand, with the RH Brand demand growing by 14%. Notably, demand accelerated in November, with total demand up 18% and RH Brand demand up 24%. The company attributed this success to ongoing product transformation efforts, including the introduction of the new RH Modern Sourcebook.

RH’s Chairman and CEO, Gary Friedman, highlighted the brand’s commitment to continuous improvement and disruption within the industry. The company reported market share gains of 15 to 25 points in Q3, with an expected increase to 25 to 45 points in Q4. RH is confident in its ability to capture a significant portion of the market share, thanks to its unique design offerings and disruptive value proposition.

Looking ahead, RH has revised its guidance for the fourth quarter and full year. The company now anticipates a total demand growth of 20% to 22% in Q4, with revenue growth of 18% to 20%. For the full year, total demand growth is projected to be between 9.9% to 10.4%, with revenue growth of 6.8% to 7.2%. Adjusted operating margin is forecasted to be between 11.5% to 11.7% for the full year, with adjusted EBITDA margin expected to range from 17.2% to 17.4%.

RH remains focused on its strategic initiatives, including the expansion of its product offerings, the introduction of new brand extensions, and the enhancement of its global presence. The company continues to invest in elevating its platform, with plans to open several new galleries and expand its design services.

In conclusion, RH’s third quarter results demonstrate strong performance and positive momentum in its business strategies. The company’s focus on innovation, market disruption, and strategic growth initiatives positions it well for continued success in the home furnishing market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read RH’s 8K filing here.

RH Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.