Net Profit Margin
since 2013
Calculation
RH, net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Jan 28, 2023 | 14.72% | = | 100 | × | 528,642) | ÷ | 3,590,477) |
| Jan 29, 2022 | 18.32% | = | 100 | × | 688,546) | ÷ | 3,758,820) |
| Jan 30, 2021 | 9.54% | = | 100 | × | 271,815) | ÷ | 2,848,626) |
| Feb 1, 2020 | 8.32% | = | 100 | × | 220,375) | ÷ | 2,647,437) |
| Feb 2, 2019 | 6.01% | = | 100 | × | 150,639) | ÷ | 2,505,653) |
| Feb 3, 2018 | 0.09% | = | 100 | × | 2,180) | ÷ | 2,440,174) |
| Jan 28, 2017 | 0.25% | = | 100 | × | 5,401) | ÷ | 2,134,871) |
| Jan 30, 2016 | 4.32% | = | 100 | × | 91,103) | ÷ | 2,109,006) |
| Jan 31, 2015 | 4.87% | = | 100 | × | 91,002) | ÷ | 1,867,422) |
| Feb 1, 2014 | 1.17% | = | 100 | × | 18,195) | ÷ | 1,550,961) |
| Feb 2, 2013 | -1.07% | = | 100 | × | (12,789) | ÷ | 1,193,046) |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
1 US$ in thousands
The net profit margin exhibited significant volatility and a general upward trajectory over the analyzed ten-year period, evolving from a negative position in 2013 to a peak in 2022 before experiencing a slight contraction in 2023.
- Initial Recovery and Stabilization (2013–2016)
- A transition from an initial net loss of 1.07% in 2013 to a positive margin of 4.32% by 2016 is observed. This period was characterized by steady revenue growth, with net revenues increasing from approximately 1.19 billion to 2.11 billion, supporting the shift toward profitability.
- Profitability Compression (2017–2018)
- A sharp decline in profitability occurred between 2017 and 2018, where the net profit margin dropped to 0.25% and 0.09%, respectively. This compression is notable as it occurred despite continued revenue growth, indicating that operating expenses or other costs scaled faster than net revenues during this interval.
- Expansion and Peak Performance (2019–2022)
- A period of aggressive margin expansion began in 2019, with the net profit margin rising from 6.01% to a peak of 18.32% in 2022. This phase demonstrates a strong positive correlation between increasing revenue—which climbed from 2.51 billion to 3.76 billion—and enhanced operational efficiency, resulting in net income growing from 150.6 million to 688.5 million.
- Recent Contraction (2023)
- The trend reversed slightly in 2023, with the net profit margin decreasing to 14.72%. This decline aligns with a reduction in net revenues to 3.59 billion, suggesting a moderate cooling of the growth momentum observed in previous years.
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Comparison to Competitors
RH, net profit margin, long-term trends, comparison to competitors
| RH | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 14.72% | 5.29% | 10.87% | 6.63% | 7.00% |
| Jan 29, 2022 | 18.32% | -0.53% | 10.87% | 8.77% | 6.76% |
| Jan 30, 2021 | 9.54% | 7.10% | 9.74% | 6.51% | 0.28% |
| Feb 1, 2020 | 8.32% | 5.53% | 10.20% | 5.93% | 7.84% |
| Feb 2, 2019 | 6.01% | 4.13% | 10.28% | 3.25% | 7.85% |
| Feb 3, 2018 | 0.09% | 4.33% | 8.55% | 5.02% | 7.27% |
| Jan 28, 2017 | 0.25% | 1.71% | 8.41% | 4.76% | 6.93% |
| Jan 30, 2016 | 4.32% | 1.74% | 7.92% | 4.31% | 7.36% |
| Jan 31, 2015 | 4.87% | 0.56% | 7.63% | 4.80% | 7.62% |
| Feb 1, 2014 | 1.17% | -0.27% | 6.83% | 4.28% | 7.79% |
| Feb 2, 2013 | -1.07% | 0.37% | 6.07% | 3.88% | 7.37% |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
RH, net profit margin, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| RH | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 28, 2023 | 14.72% | 6.54% |
| Jan 29, 2022 | 18.32% | 3.14% |
| Jan 30, 2021 | 9.54% | 7.21% |
| Feb 1, 2020 | 8.32% | 6.58% |
| Feb 2, 2019 | 6.01% | 5.63% |
| Feb 3, 2018 | 0.09% | 5.65% |
| Jan 28, 2017 | 0.25% | 4.42% |
| Jan 30, 2016 | 4.32% | 4.52% |
| Jan 31, 2015 | 4.87% | 4.30% |
| Feb 1, 2014 | 1.17% | 3.85% |
| Feb 2, 2013 | -1.07% | 3.85% |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
Comparison to Industry (Consumer Discretionary)
RH, net profit margin, long-term trends, comparison to industry (consumer discretionary)
| RH | Consumer Discretionary | |
|---|---|---|
| Jan 28, 2023 | 14.72% | 7.84% |
| Jan 29, 2022 | 18.32% | 5.02% |
| Jan 30, 2021 | 9.54% | 9.12% |
| Feb 1, 2020 | 8.32% | 5.18% |
| Feb 2, 2019 | 6.01% | 5.92% |
| Feb 3, 2018 | 0.09% | 6.19% |
| Jan 28, 2017 | 0.25% | 4.38% |
| Jan 30, 2016 | 4.32% | 5.77% |
| Jan 31, 2015 | 4.87% | 6.37% |
| Feb 1, 2014 | 1.17% | 4.66% |
| Feb 2, 2013 | -1.07% | 5.29% |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).