Executive Summary
Rh delivered a resilient Q4 2024 with revenue of $812.4 million, underpinned by a stable gross margin and a continued premium-brand draw. Gross profit reached $362.8 million, producing a gross margin of 44.7%. Operating income amounted to $70.3 million, and EBITDA was $102.5 million, yielding operating and EBITDA margins of 8.7% and 12.6%, respectively. Net income was $13.9 million with diluted EPS of $0.69–$0.75, aided by a tax benefit. However, the company posted negative free cash flow of $69.7 million, driven by a CFO of $-18.8 million and capital expenditures of $50.9 million. On the balance sheet, Rh remains heavily leveraged, reporting total debt of $3.94 billion and net debt of approximately $3.91 billion, with negative shareholders’ equity of $-163.6 million. Cash balances are modest at $30.4 million, and liquidity metrics show a current ratio of 1.43 but a very low cash ratio (0.0336). The quarterly results imply revenue and gross-margin strength alongside ongoing cash-flow and leverage challenges, highlighting the need for deleveraging and cash-flow normalization to support a constructive longer-term investment thesis. While management commentary is not included in the provided transcript data, typical themes would include pricing power, inventory management, and deleveraging strategies; investors should monitor cash conversion, working capital dynamics, and debt maturities going forward.
Key Performance Indicators
QoQ: -30.69% | YoY:10.83%
QoQ: -58.04% | YoY:483.92%
QoQ: -58.10% | YoY:475.00%
Key Insights
Revenue: $812.406 million; YoY +11.75%, QoQ +0.08%. Gross Profit: $362.797 million; YoY +14.80%, QoQ +0.40%; Gross Margin: 44.66%. Operating Income: $70.329 million; YoY +10.83%, QoQ -30.69%; Operating Margin: 8.66%. EBITDA: $102.504 million; EBITDA Margin: 12.60%. Net Income: $13.917 million; YoY +483.92%, QoQ -58.04%; Net Margin: 1.71%. EPS (GAAP): $0.75; Diluted EPS: $0.69; YoY EPS +475%, QoQ -58.1%. Free Cash Flow: $(69.666) million; CFO: $(18.774) million; Capex: $(50.891) million; D&A:...
Financial Highlights
Revenue: $812.406 million; YoY +11.75%, QoQ +0.08%. Gross Profit: $362.797 million; YoY +14.80%, QoQ +0.40%; Gross Margin: 44.66%. Operating Income: $70.329 million; YoY +10.83%, QoQ -30.69%; Operating Margin: 8.66%. EBITDA: $102.504 million; EBITDA Margin: 12.60%. Net Income: $13.917 million; YoY +483.92%, QoQ -58.04%; Net Margin: 1.71%. EPS (GAAP): $0.75; Diluted EPS: $0.69; YoY EPS +475%, QoQ -58.1%. Free Cash Flow: $(69.666) million; CFO: $(18.774) million; Capex: $(50.891) million; D&A: $34.109 million; Change in Working Capital: $(125.458) million. Balance Sheet: Cash and cash equivalents $30.413 million; Total Assets $4,554.689 million; Total Liabilities $4,718.278 million; Stockholders’ Equity $(163.589) million; Long-term Debt $3,790.810 million; Net Debt $3,907.476 million. Liquidity: Current Ratio 1.427; Quick Ratio 0.300; Cash Ratio 0.0336; DSO 12.68 days; DIO 204.10 days; DPO 49.09 days; CCC 216.77 days. Valuation: P/E 140.27x; P/B -47.73x; P/S 9.61x; EV/EBITDA 114.30x; Price to Free Cash Flow -112.09x; Price to Operating Cash Flows -415.94x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
812.41M |
11.75% |
0.08% |
| Gross Profit |
362.80M |
14.80% |
0.40% |
| Operating Income |
70.33M |
10.83% |
-30.69% |
| Net Income |
13.92M |
483.92% |
-58.04% |
| EPS |
0.75 |
475.00% |
-58.10% |
Key Financial Ratios
operatingProfitMargin
8.66%
operatingCashFlowPerShare
$-1.01
freeCashFlowPerShare
$-3.74
priceEarningsRatio
140.27
Management Commentary
Note: No earnings call transcript data provided in the current dataset; unable to extract management quotes or themes. Expected discussion topics for Rh typically include pricing power, catalog and direct-to-consumer initiatives, inventory management, store productivity, and deleveraging plans.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Investors should monitor: (1) cash flow trajectory and working capital normalization (inventory days and payables), (2) deleveraging progress given the high debt load and negative equity, (3) gross margin stability through pricing, mix, and product portfolio, and (4) any potential refinancings or strategic actions to extend debt maturities and optimize the capital structure.