Thu, Jun 12, 9:22 PM (31 days ago)
**RH (RH) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $813.952M, up 12.0% YoY. - **Profit Margins:** Gross margin at 43.7%, up 20 bps YoY. Operating margin at 6.9%, down 60 bps YoY. - **Net Income:** $8.039M, a significant improvement from a loss of $3.625M in Q1 2024. - **Cash Flow:** Positive operating cash flow of $86.641M, despite negative investing and financing cash flows. **Key Metrics & Trends:** - **Segment Performance:** RH Segment revenue up 13.0% YoY, Waterworks down 1.9% YoY. - **Expenses:** Selling, general, and administrative expenses up 14.6% YoY. - **Interest Expense:** Relatively stable at $56.603M. - **Taxes:** Effective tax rate at 28.0%, down from 36.6% YoY. **Uncertainties & Future Operations:** - **Macroeconomic Factors:** High interest rates, inflation, and global financial market volatility impact business. - **Strategic Initiatives:** Focus on product elevation, gallery transformation, brand elevation, global expansion, and digital reimagination. - **Capital Expenditures:** Anticipated at $275M-$325M for fiscal 2025, primarily for growth and expansion. - **Debt & Liquidity:** Net debt at $2.556B, with $367.8M available under the ABL Credit Agreement. **Ticker:** RH