RHNYSERetail-Furniture StoresUS GAAP · USD

RH

RH is a U.S.-based luxury home furnishings retailer and lifestyle brand centered on curated furniture, lighting, textiles, décor, and related home categories. It sells through Galleries, websites, Sourcebooks, outlet stores, and specialized channels such as Trade, Contract, and Hospitality, with operations across the United States, Canada, and select European markets.

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Revenue3,440m USD
+8.1 %y/y
Operating profit (EBIT)387m USD
+20.1 %y/y
EBIT margin11.3%
+1.1 ppy/y
Net income125m USD
+72.3 %y/y
Free cash flow252m USD
+218.1 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

01,0002,0003,0004,000m USD2021: 2,849 m USD2021: EBIT 467 m USD20212022: 3,759 m USD2022: EBIT 927 m USD20222023: 3,590 m USD2023: EBIT 722 m USD20232024: 3,029 m USD2024: EBIT 366 m USD20242025: 3,181 m USD2025: EBIT 323 m USD20252026: 3,440 m USD2026: EBIT 387 m USD20263,440387
RevenueOperating profit (EBIT)

Business

Share of revenue
Core RH home furnishings78 %

Curated furniture and home décor sold through RH's core retail platform.

RH Hospitality4 %

Restaurants and wine bars integrated into select Design Gallery locations.

Outlet sales7 %

Returned, discontinued and overstock merchandise sold through RH Outlet stores.

Waterworks11 %

Bath, kitchen and related luxury home products sold under the Waterworks brand.

Customers

RH serves affluent homeowners and design-conscious consumers who buy for primary residences, second homes, and renovation projects. It also sells through interior designers, decorators, hospitality groups, commercial property owners, and residential developers that specify RH products for client projects. The membership model is central to repeat purchasing in the core RH business, while outlet stores monetize returned and excess inventory.

Core RH members

Household customers who buy curated home furnishings through the RH platform and membership program for everyday value and design services.

Trade channel

Interior designers and decorators purchasing for residential client projects and influencing product selection.

Contract channel

Hospitality, commercial and residential development customers buying at project scale for specification-led installations.

Outlet customers

Price-sensitive buyers seeking returned, discontinued or overstock merchandise at outlet locations.

Waterworks customers

Customers and project specifiers buying luxury bath and kitchen products under the Waterworks brand.

Strategy

RH's strategy centers on product transformation, platform expansion and cash generation, supported by new Design Galleries, broader category assortment and a membership-led customer model. The company also uses its brand, Sourcebooks, digital channels and hospitality assets to deepen customer engagement and differentiate the luxury lifestyle experience.

Product transformation and assortment expansionMedium term

A broader, more differentiated assortment supports the luxury positioning and increases customer traffic across channels.

Platform expansion through Design Galleries and digital channelsMedium term

Galleries act as showrooms and brand theaters while websites and Sourcebooks extend reach and conversion.

Membership-led customer retentionShort term

The membership model encourages repeat buying, smooths demand through the year and strengthens brand loyalty.

Capital deployment and real estate investmentMedium term

Large-format galleries and related assets require sustained capital, making disciplined allocation central to growth.

Geography

RH operates retail locations throughout the United States and Canada, with additional presence in the United Kingdom, Germany, Belgium and Spain. The company also uses home delivery operations in 27 key markets to support its larger merchandise and furniture categories, which makes logistics and service quality an important part of the customer experience. International expansion increases exposure to local regulations, tariffs, currency movements and operating complexity.

Risks

RH depends on successful execution of multiple initiatives at once, including international expansion, new categories and hospitality, which raises operational and execution risk. Its business is also exposed to tariffs, supply chain disruption, currency swings, consumer demand shifts and the complexity of running large-format retail, delivery and real estate assets across several countries.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Supply chain and product sourcing disruption1Execution risk across simultaneous initiatives2International trade and geopolitical exposure3Consumer demand cyclicality4Inventory and markdown risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Supply chain and product sourcing disruptionImpact: HighLikelihood: High

    The business relies on sourcing, fulfillment and delivery for large, fragile merchandise.

    ExposureFurnitureLightingOther bulky categories
  2. Execution risk across simultaneous initiativesImpact: HighLikelihood: Medium

    The company is expanding internationally, adding categories and building hospitality assets at the same time.

    ExposureGrowth initiativesNew marketsReal estate projects
  3. International trade and geopolitical exposureImpact: HighLikelihood: Medium

    Operating in multiple countries can introduce tariffs, import/export controls, sanctions and local compliance burdens.

    Exposure: Europe and other non-U.S. operations

  4. Consumer demand cyclicalityImpact: MediumLikelihood: Medium

    Luxury home furnishings depend on discretionary spending, housing activity and design project timing.

    Exposure: Core RH retail and Trade channels

  5. Inventory and markdown riskImpact: MediumLikelihood: Low

    Returned, discontinued and overstock goods must be managed through outlets and reserves.

    Exposure: Outlet stores and merchandise inventories

Accounting

Judgemental items
Merchandise inventories and reserves

Returned, discontinued and overstock goods require reserve estimates that affect gross margin and inventory carrying value.

Impact: Inventory valuation and markdown expense

Impairment of long-lived assets

Design Galleries, hospitality assets and outlet locations may need impairment testing if cash flows weaken.

Impact: Asset write-downs and operating results

Lease accounting

Retail and outlet locations create significant right-of-use assets and lease liabilities.

Impact: Balance sheet leverage and occupancy expense

Fair value measurements

The company may use derivatives or equity-linked instruments in capital allocation and financing activities.

Impact: Non-operating gains and losses

Seasonality and timing of openings

Gallery openings, Sourcebook circulation and hospitality launches can shift revenue timing across quarters.

Impact: Quarterly comparability and margin volatility

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Last updated: 24/09/2026