Thu, Sep 12, 9:02 PM (100 days ago)
For the second quarter ended August 3, 2024, RH reported net revenues of $829,655,000, reflecting a 3.6% increase from $800,479,000 in the same period last year. However, gross profit decreased to $374,757,000, down 1.4% year-over-year, with gross margins contracting by 230 basis points to 45.2%. Selling, general, and administrative expenses surged by 21.8% to $278,630,000, driven by increased advertising costs and higher compensation and occupancy expenses. Consequently, income from operations fell to $96,127,000 from $151,340,000. Net income dropped to $28,952,000, a significant decline from $76,477,000 in the prior year, with an effective tax rate of 11.4%. Cash flows from operations were $67,306,000, while investing activities consumed $124,763,000, primarily for capital expenditures. The company has $25 million drawn from its asset-based credit facility, with $201 million remaining available under its share repurchase program. Overall, RH is navigating challenges from shifting consumer spending trends and macroeconomic pressures but remains focused on strategic growth initiatives and international expansion.