News
Earnings · Global Expansion · Home Furnishings · Luxury Retail
RH reported fiscal year 2023 GAAP net revenues of $3.029 billion and GAAP net income of $128 million, while forecasting fiscal 2024 demand growth of 12% to 14% and revenue growth of 8% to 10% driven by new luxury collections and global expansion.
For the fourth quarter of 2023, RH posted GAAP net revenues of $738 million and GAAP net income of $11 million. Chairman and CEO Gary Friedman stated the company expects significant market share gains in fiscal 2024 from new luxury outdoor and modern collections, which launched in late February and are scheduled for late April, respectively.
RH plans to increase print and digital advertising across major home design publications in 2024. The company's platform expansion includes five new North American Design Galleries, an RH Interior Design Studio in Palm Desert, and two International Galleries in Brussels and Madrid opening in 2024, with RH Sydney planned for Fall 2026.
RH Paris is delayed until Spring 2025 due to Olympic Games construction. Friedman anticipates business conditions will remain challenging until interest rates ease, but demand trends will accelerate throughout fiscal 2024, though revenue will lag demand by 4 to 8 points due to assortment transformation and lead times.
The company forecasts an increased backlog of $110 million to $130 million and expects international expansion investments to create a 200 basis point drag on margins in 2024.
