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Restoration Hardware RH Impairment Charges

Discontinued — last reported Q3 '24

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Segments

By segment

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Waterworks$8.75M

Other financials

Income statement

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Revenue$800.3M-1.7%
Gross profit$331.3M-6.8%
Operating income$34.2M-38.8%
Net income-$13.7M-270%
EPS (diluted)-$0.73-283%

Balance sheet

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Cash & equivalents$53.8M+16.7%
Total debt$1.6B+18.6%
Total equity$56.9M+151%
Total assets$4.9B+6.4%

Cash flow

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Operating cash flow$52.5M-39.4%
CapEx$39.2M-25.4%
Free cash flow$13.3M-61.0%

Valuation

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Market cap$3.56B-10.8%
Enterprise value$5.12B-4.2%
P/E34.5×-2.8×
P/S-0.2×

Profitability

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Gross margin43.5%-1.0pp
Operating margin10.7%+0.8pp
Net margin3%+0.4pp
FCF margin6.8%+4.7pp

Returns & leverage

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Return on equity33.9%-44.4pp
Debt / equity28.4×
Current ratio1.1×-0.2×

Where this comes from

Reported directly by Restoration Hardware in its filing.

Tagged under the XBRL concept us-gaap:ImpairmentOfLongLivedAssetsHeldForUse.

The source filing: Restoration Hardware’s 10-Q, filed December 12, 2024.

Filed
Dec 12, 2024
Fiscal quarter
Q3 FY2024
Calendar quarter
Q4 2024
Accession
0001558370-24-016185

During the three months ended November 2, 2024, we recognized long-lived asset impairment charges of $19 million for our two Design Galleries in Germany due to the asset carrying value of each location exceeding the estimated fair market value of the long-lived assets over their respective remaining lease terms, both of which end in 2027. These impairment charges were comprised of lease right-of-use asset impairment of $13 million and property and equipment impairment of $5.6 million. Refer to the long-lived assets accounting policy in Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates.

ITEM 1. FINANCIAL STATEMENTS

FAQ

What is Restoration Hardware's impairment charges?
Restoration Hardware (RH) reported impairment charges of $19M in Q3 2024.
What does impairment charges mean?
Write-downs of long-lived assets (excluding goodwill) when their carrying value exceeds fair value, including property, equipment, right-of-use assets, and other tangible assets.

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