RH (Restoration Hardware) is a luxury lifestyle retail brand specializing in home furnishings, operating through multiple channels including physical stores, digital platforms, and immersive experiences.

# Company Summary

## Overview
- **Name:** RH (restoration hardware)
- **Industry:** Retail and luxury lifestyle brand focused on home furnishings.
- **Product Categories:** 
  - Furniture
  - Lighting
  - Textiles
  - Bathware
  - Décor
  - Outdoor and garden furnishings
  - Baby, child, and teen furnishings

## Business Model
- Fully integrated across multiple channels:
  - **Physical Retail Locations** (Design Galleries, Legacy Galleries, Waterworks Showrooms)
  - **Digital Platforms:** Websites including rh.com, rhbabyandchild.rh.com, rhteen.rh.com
  - **Print:** Sourcebooks and catalogs showcasing merchandise in lifestyle settings
- **Offices:** Operates in the U.S., Canada, U.K., Germany, Belgium, and Spain.
- **Additional Experiences:** 
  - RH Hospitality (restaurants and wine bars in 21 Galleries)
  - RH Guesthouses (including one in New York and a second under construction in Aspen)
  - Bespoke Experiences: Private jets (RH1 & RH2), luxury yacht (RH3), and curated experiences like RH Yountville

## Locations and Employees
- **Total Retail Locations:** 83 (as of February 1, 2025)
  - **North America:** 69 locations including 33 Design Galleries in the U.S., 5 in Europe, and Waterworks Showrooms
  - **International:** Presence in U.K., Germany, Belgium, Spain, and upcoming locations in Paris, London, Milan, and Sydney
- **Employees:** approximately 6,340 (as of February 1, 2025)
  - Retail and outlet staff: 2,290
  - Hospitality staff: 1,880
  - Part-time employees: 650

## Financial Highlights (Fiscal Year Ended February 1, 2025)
- **Total Revenue:** approximately **$3.18 billion**
  - **RH Segment Revenue:** approximately **$2.99 billion**
  - **Waterworks Revenue:** approximately **$193 million**
- **Net Income:** approximately **$72.4 million**
- **Gross Profit:** approximately **$1.41 billion** (Gross Margin: 44.5%)
- **Employees:** 6,340

## Business Strategy
- Elevate product quality and design, introduce new collections and brands.
- Expand Gallery locations in major markets, including international expansion.
- Incorporate hospitality and immersive experiences (e.g., Guesthouses, restaurants, private jets, yachts).
- Emphasize brand elevation by conceptualizing spaces beyond product sales.
- Digital reimagination through enhanced online portals and e-commerce platforms.

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This summary captures the company's core operations, number of locations, employees, revenue, income, and strategic focus areas as detailed in the provided document.

RH (Restoration Hardware) is a leading luxury lifestyle brand and retailer specializing in high-end home furnishings, with a strong membership program that significantly drives sales.

## Company Overview: RH (Restoration Hardware)

### Business Model
RH operates as a leading retailer and luxury lifestyle brand primarily focused on the home furnishings market. The company offers a curated assortment of high-end merchandise across various categories, including:

- **Furniture**: Living room, bedroom, outdoor, and custom options.
- **Lighting**: Chandeliers, table lamps, and outdoor lighting.
- **Textiles**: Rugs, throws, and decorative pillows.
- **Bathware**: Luxury bathroom furniture and fixtures.
- **Décor**: Decorative items, art, and accessories.
- **Outdoor and Garden**: Furnishings and décor for outdoor spaces.
- **Baby, Child, and Teen Furnishings**: Specialized products catering to younger demographics.

### Sales Channels
RH operates an integrated retail ecosystem through:
- **Physical Galleries**: 70 RH Galleries (as of February 3, 2024) across the United States, Canada, the United Kingdom, and Germany, which serve as showrooms for the brand.
  - 31 Design Galleries with an average size of approximately 33,400 square feet.
  - 35 Legacy Galleries, with smaller average sizes.
- **Websites**: Online platforms including rh.com, rhbabyandchild.com, and rhteen.com enabling ecommerce transactions.
- **Sourcebooks**: High-quality print catalogs that promote products.
- **Trade and Contract Sales**: Catering specifically to interior designers, decorators, and large-scale commercial projects.
- **Outlet Stores**: Operated under the RH Outlet brand, selling primarily returned merchandise or discontinued items.

### Customer Base and Membership
- **Customer Count**: RH currently has approximately 281,000 members enrolled in its RH Members Program. This program provides benefits such as discounts and design services.
- **Membership Impact**: Members are a significant driver of sales, accounting for about 97% of sales in the core RH business.

### Employee Count
- As of February 3, 2024, RH employs **approximately 5,960 team members** across various segments:
  - 2,210 in retail and outlet stores.
  - 1,520 in hospitality-related positions.
  - 630 part-time employees.

### Financial Performance
- **Revenue**: RH's total revenue details for the latest periods have not been explicitly stated in the summarized text, but there is an anticipated annual revenue opportunity projected to be between **$5 to $6 billion** as a result of Gallery transformations.
- **Growth Initiatives**: The company actively pursues international expansion and the introduction of new product categories, which are key pillars for future revenue growth. 

### Key Strategies and Initiatives
- **Product Elevation**: Continuously refining and expanding its product offerings, including planned collections like RH Couture and RH Color.
- **Gallery Transformation**: Revamping physical retail spaces to enhance customer experience and increase sales potential.
- **Brand Elevation**: Transitioning from just selling products to conceptualizing and selling spaces, including hospitality experiences.
- **Global Expansion**: Plans to grow internationally, with new Gallery locations announced in Europe and further global markets on the horizon.
- **Digital Reimagination**: Enhancing online platforms to improve customer engagement and shopping experiences.

### Summary
RH is committed to merging luxury home furnishings with impactful customer experiences, leveraging a blend of sophisticated physical galleries, innovative digital platforms, and a strong membership program to capture and grow its customer base while maintaining a high standard of product quality and service. The company's ongoing investments in enhancing its offerings and expanding its reach are indicative of a robust growth strategy aimed at solidifying its position as a leader in the luxury home furnishings market.

RH

10-K / April 2, 2025

10-K / March 28, 2024

10-K / April 2, 2025

Company Summary

Overview

Business Model

Locations and Employees

Financial Highlights (Fiscal Year Ended February 1, 2025)

Business Strategy