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Jan 29, 2022

RH Q4 2022 Earnings Report

RH's financial statements for Q1, Q2, and Q3 of fiscal year 2022 were restated due to errors in calculating net income per share and adjusted effective tax rate.

Key Takeaways

RH restated its financial statements for Q1, Q2, and Q3 of fiscal year 2022 due to errors in the calculation of basic and diluted net income per share and modifications to the adjusted effective tax rate.

Restatements were limited to the calculation of basic and diluted net income per share and did not affect previously reported GAAP net income.

The adjusted effective tax rate was modified to exclude the GAAP tax provision and include a non-GAAP tax provision.

Adjusted net income was modified to exclude the GAAP tax provision and include a non-GAAP tax provision based on adjusted pre-tax net income, the projected annual adjusted tax rate, and the exclusion of material discrete tax items.

The restatements did not affect any other previously reported GAAP financial information, including assets, liabilities, equity, revenues, gross profit, operating income or cash flows, and the related non-GAAP measures, as well as EBITDA, adjusted EBITDA, free cash flow and adjusted free cash flow.

Total Revenue
$772M
Previous year: $903M
-14.4%
EPS
$2.88
Previous year: $5.66
-49.1%
Gross Profit
$456M
Previous year: $385M
+18.3%
Cash and Equivalents
$2.18B
Previous year: $100M
+2068.2%
Free Cash Flow
$96.8M
Previous year: $114M
-15.2%
Total Assets
$5.54B
Previous year: $2.9B
+91.2%

RH

RH

Forward Guidance

This document contains forward-looking statements regarding the company's expectations for its non-GAAP financial measures, the impact of the restatements, and the status of the company's efforts to remediate deficiencies.