RH (RH) SEC Filings & Earnings Calls

Tariff uncertainty

“There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels and whether further additional tariffs or other retaliatory actions may be imposed, modified or suspended.” · word for word

High interest rate sensitivity

“In recent years, our business has been negatively affected and limited by macroeconomic conditions, including high interest rates and mortgage rates, volatility in the global financial markets and the slowdown in the luxury home market.” · word for word

SG&A cost inflation

“Consolidated selling, general and administrative expenses increased $57 million, or 20.3%, to $337 million in the three months ended August 1, 2026 compared to $280 million in the three months ended August 2, 2025.” · word for word

Tariff refunds are non-recurring; normalized margins lower. Oil price spike impacting supply chain costs.

“tariff benefit of $55.1 million ... expect to recognize an additional $13.9 million tariff benefit ... offset $50 million of unplanned cost increases due to oil prices”

Insider selling for personal liquidity

“the undersigned sold an aggregate of 125,000 shares of Common Stock in order to fund (i) improvements to personal residences and (ii) the repayment of balances under personal line of credit borrowings.” · word for word

Insider selling for personal liquidity

“the undersigned sold an aggregate of 125,000 shares of Common Stock in order to fund (i) improvements to personal residences and (ii) the repayment of balances under personal line of credit borrowings.” · word for word

Insider sale may signal personal liquidity needs but not operational distress; CEO retains large stake.

“Sale to fund personal residence improvements and repay line of credit; CEO states continued commitment.”

Tariff and trade policy uncertainty

“Since the majority of our product assortment is imported from vendors outside the United States, we also face uncertainty and risks related to tariffs and other trade policies, which may increase the costs of securing products from our vendors.” · word for word

Macroeconomic headwinds

“In recent years, our business has been negatively affected and limited by macroeconomic conditions, including high interest rates and mortgage rates, volatility in the global financial markets and the slowdown in the luxury home market” · word for word

High leverage and interest expense

“Interest expense—net $52,663”

Tariff-related backorder headwinds impacting Q1 revenue by ~$45M; expected to normalize by year-end.

“First Quarter net revenues were negatively impacted by approximately $45 million due to higher backorder and special order balances” · word for word

International expansion pre-opening costs pressuring margins: -270bps for FY, -380bps for Q2.

“approximate negative 270 basis point Adjusted EBITDA margin impact from pre-opening and startup costs to support our international expansion” · word for word

Dependence on key personnel

“risks related to our dependence on key personnel and any changes in our ability to retain key personnel or successfully transition leadership roles” · word for word

Tariff and trade policy risk

“our expectations regarding the potential effect of increased tariffs on our operations” · word for word

High leverage

“Total net debt $2,377,874”

High leverage and variable rate debt exposure

“subjecting us to increased interest expense related to the variable interest rate terms of our ABL Credit Agreement and Term Debt” · word for word

Real estate development cost overruns and delays

“We have experienced development cost overruns, construction delays and other negative factors which could expose us to increased downside risks”

Key person dependency

“The success of our business depends upon our ability to retain certain key personnel, particularly our Chairman and Chief Executive Officer, Gary Friedman” · word for word

Supply chain and input cost inflation

“Increases in the prices of the components and raw materials used in our products and other costs such as transportation could negatively affect the sales of our merchandise and our product margins.” · word for word

International expansion impairment

“in the third quarter of fiscal 2024, we recognized long-lived asset impairment charges of $19 million for our two Design Galleries in Germany” · word for word

Tariff-related backorders and special orders negatively impacted Q4 revenue by ~$30M

“Fourth Quarter and Fiscal Year 2025 net revenues were negatively impacted by approximately $30M due to higher than expected backorder and special order balances as a result of tariff related resourcing” · word for word

Adverse weather impacted Q4 revenue by ~$10M

“approximately $10M due to adverse weather at the end of the quarter” · word for word

Q1 FY2026 outlook shows revenue decline of 2-4% and significant margin compression

“First Quarter 2026 Outlook: Revenue Growth of -2% to -4%, Adjusted EBITDA Margin of 5.5% to 6.5%” · word for word

Loss of a senior customer-facing officer could temporarily affect customer relationships or strategy execution.

“Departure of Chief Gallery & Customer Officer”

Macroeconomic headwinds from high interest rates and luxury home market slowdown

“In recent years, our business has been negatively affected and limited by macroeconomic conditions, including high interest rates and mortgage rates, volatility in the global financial markets and the slowdown in the luxury home market” · word for word

Tariff and trade policy uncertainty

“Since the majority of our product assortment is imported from vendors outside the U.S., we also face uncertainty and risks related to tariffs and other trade policies, which may continue to increase the costs of securing products from our vendors.” · word for word

High leverage and interest rate exposure

“Our current level of indebtedness, and any additional indebtedness that we may incur, exposes us to certain risks with regards to interest rate increases and fluctuations.” · word for word

Tariff impact on margins and supply chain disruption.

“Higher than forecasted tariff expense on prior period special order and back order sales; 170 bps impact in Q4 outlook.” · word for word

Weak housing market affecting demand.

“Worst housing market in almost 50 years; existing home sales at historic lows relative to population.” · word for word