Corte Madera, Calif. — Top 50 retailer RH reported gains in net sales for the fourth quarter and full fiscal 2024 year in its latest earnings report.
For the three months ended Feb. 1, the Corte Madera, Calif.-based retailer reported net revenues of $812 .41 million, up 10.04% compared with sales of $738.26 million over the same quarter last year. Net income for the quarter totaled $18.632 million, or 69 cents per diluted share, an increase of 22.28% vs. net income of $18.269 million, or 57 cents per diluted share.
Taking stock of the full year, RH accumulated $3.181 billion in sales, up 5.01% compared with FY2023’s $3.029.1 billion. However, the full year’s net income of $72.412 million, or $3.62 per diluted share was 43.34% off the mark set by 2023’s net income of $127.56 million, or $5.91 per diluted share.
Chairman and CEO Gary Friedman said those numbers look better in context. He noted in 1978, there were 4.09 million existing homes sold when the U.S. has a population of 223 million, while in 2024, 4.06 million existing homes were sold with a population of 341 million.
“Despite that fact, we are performing at a level most would expect in a robust housing market. We believe it’s a result of investing with a very narrow focus and a long-term view, or what we like to call, ‘An inch wide and a mile deep,’” Friedman wrote in an executive letter that accompanied the earnings report. “Elevating and expanding our platform by creating the most desired products presented in the most inspiring spaces in the world, with bespoke interior design services and beautiful restaurants that generate energy, engagement and tremendous awareness of the RH brand, while also serving as a profitable customer acquisition vehicle.”
Friedman indicated that RH isn’t expecting a negative impact to results related to previously announced China, Mexico and Canada tariffs, and the company will work with manufacturing partners to mitigate impacts from reciprocal and other tariffs.
“We believe it is also important to note that we have been manufacturing upholstered furniture in our own North Carolina factory for over 10 years, and have recently expanded the facility, doubling our capacity,” Friedman wrote. “We are currently projecting that 48% of our upholstered furniture will be produced in the U.S., 21% of our upholstered furniture will be produced in Italy, and 14% of our total business will be produced in the U.S. by the end of this year.”
Looking ahead, RH issued fiscal 2025 guidance consisting of revenue growth of 10% to 13% and adjusted EBITDA margin of 20% to 21%, as well as first quarter revenue growth of 12.5% to 13.5% and adjusted EBITDA margin of 12.5% to 13.0%. Expansion highlights for 2025 include seven new Design Galleries.