Thu, Jun 13, 9:08 PM (130 days ago)
RH, a luxury home furnishings retailer, reported its financial results for the quarter ended May 4, 2024. Key highlights include: - **Net Revenues**: Decreased by 1.7% to $727 million compared to the same period last year, primarily due to lower demand influenced by challenging macroeconomic conditions such as elevated interest rates and a sluggish luxury housing market. - **Gross Profit**: Declined by 9.1% to $316 million, with gross margin decreasing to 43.5% from 47.0% due to lower product margins and higher occupancy costs. - **Selling, General and Administrative Expenses**: Increased by 5.3% to $261 million, driven by higher advertising costs, compensation, and occupancy expenses. - **Operating Income**: Dropped to $54.7 million from $99.2 million, reflecting the impacts of lower revenues and higher operating costs. - **Net Loss**: Reported a net loss of $3.6 million compared to a net income of $41.9 million in the prior year, influenced by higher interest expenses and other costs. - **Cash Flow**: Generated $56 million in operating cash flow, while investing activities used $69 million, primarily for capital expenditures and equity investments. Financing activities used $8.9 million mainly for debt repayments. - **Future Outlook**: The company expects capital expenditures between $250 million and $300 million for fiscal 2024, focusing on new Design Galleries and infrastructure investments. - **Share Repurchase Program**: No shares were repurchased during the quarter, with $201 million remaining available for future repurchases. The company continues to navigate the challenging economic environment while investing in growth and expansion initiatives.