RH (NYSE:RH)

The financial data reveals several key trends over the analyzed periods.

Net revenues

There is a generally upward trajectory from February 2018 to January 2022, increasing from approximately 2.44 billion to 3.76 billion US dollars, followed by a slight decline to around 3.59 billion in January 2023. This indicates robust revenue growth until 2022, with a moderate pullback in 2023.

Cost of goods sold

Costs have fluctuated but show an overall increase, from about 1.59 billion US dollars in 2018 to nearly 1.91 billion by 2022, then decreasing slightly to approximately 1.78 billion in 2023. The cost pattern generally aligns with revenue trends, though the proportional increase in costs appears less steep than revenue growth over most periods.

Gross profit

Gross profit displays consistent growth, rising from 849 million US dollars in 2018 to a peak of approximately 1.86 billion in 2022, before a minor decrease to about 1.81 billion in 2023. This reflects improvements in profitability at the gross level, correlating with rising revenues and controlled cost increases.

Selling, general and administrative expenses

These expenses increase steadily across the years, from 718 million US dollars in 2018 to roughly 1.09 billion in 2023, suggesting growing operational or administrative costs that may exert pressure on operating margins over time.

Income from operations

Operating income nearly triples from 131 million US dollars in 2018 to a high of 927 million in 2022, before decreasing to 722 million in 2023. The sharp rise indicates improved operational efficiency or stronger revenue generation relative to expenses until 2022, while the subsequent fall could be linked to rising expenses or other operational factors.

Interest expense and income

Interest expense fluctuates but generally remains substantial, with a notable spike to 152 million US dollars in 2023, almost double the previous year. Interest income grows steadily, with a sharp increase in 2023 to 38.5 million US dollars, which partly offsets the expense. Net interest expense increases significantly in 2023, consistent with rising interest-related costs.

(Gain) loss on extinguishment of debt

There is considerable volatility in this category, with losses fluctuating between gains and large losses, culminating in a significant loss of 169.6 million US dollars in 2023. This result suggests increased debt restructuring costs or early debt repayments in that year.

Goodwill and tradename impairment

Impairments are recorded intermittently, with impacts notably in 2018, 2019, and 2021, indicating occasional write-downs of intangible assets. No impairments are recorded in 2022 and 2023, implying stability or absence of impairment triggers during these years.

Other expenses

Other expenses remain relatively stable until 2022, followed by a sharp increase to 283 million US dollars in 2023, suggesting non-recurring or extraordinary costs in the latest period.

Income before income taxes and equity method investments

This metric increases substantially from 30 million US dollars in 2018 to 830 million in 2022, then declines to 439 million in 2023, reflecting the combined effects of operating results, interest, and other non-operational items on pre-tax profitability.

Income tax (expense) benefit

Tax expense increases up to 134 million US dollars in 2022 but shifts to a tax benefit of 91 million in 2023, indicating possible tax credits, deferred tax assets, or other tax advantages utilized in the latest year.

Net income

Net income demonstrates strong growth, from a modest 2.2 million US dollars in 2018 to a peak of 689 million in 2022, with a decrease to 529 million in 2023. The decline in 2023 is consistent with lower income before taxes but partially offset by the tax benefit, suggesting profitability remains solid despite some pressures.