RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain.
The company’s curated and fully integrated assortments are presented consistently across its sales channels, including the company’s retail locations, websites and Sourcebooks. The company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, o...
RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain.
The company’s curated and fully integrated assortments are presented consistently across its sales channels, including the company’s retail locations, websites and Sourcebooks. The company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby, child and teen furnishings.
The company’s retail business is fully integrated across its multiple channels of distribution. The company positions its Galleries as showrooms for its brand, while the company’s websites and Sourcebooks act as virtual and print extensions of its physical spaces, respectively. The company has an integrated RH Hospitality experience in 21 of its Design Gallery locations, which includes restaurants and wine bars.
Key Value-Driving Strategies
The company’s key strategies and business are:
The company’s brand concepts as RH Interiors, RH Modern, RH Contemporary, RH Outdoor, RH Beach House, RH Ski House, RH Baby & Child, RH TEEN and Waterworks. The company’s strategy is to continue to elevate the design and quality of its product.
The company’s products are elevated and rendered more valuable by its architecturally inspiring Galleries. The company’s strategy to open new Design Galleries in every major market in North America will unlock the value of its vast assortment, generating an expected annual revenue opportunity for the company’s business.
The company’s strategy is to move the brand beyond curating and selling product to conceptualizing and selling spaces, by building an ecosystem of Products, Places, Services and Spaces that establishes the RH brand as a global thought leader, taste and place maker. The company’s seamlessly integrated ecosystem of immersive experiences inspires customers to dream, design, dine, travel and live in a world thoughtfully curated by RH, creating an impression and connection unlike any other brand in the world. The company’s hospitality efforts will continue to elevate the RH brand as it extends beyond the four walls of its Galleries into RH Guesthouses.
The company is actively pursuing the expansion of the RH brand globally, which began with the opening of RH England, RH Munich and RH Düsseldorf in 2023, followed by the opening of RH Brussels in March 2024 and RH Madrid in June 2024.
The company’s strategy is to digitally reimagine the RH brand and business model both internally and externally. Internally, the company’s multiyear effort began with the reimagination of its Center of Innovation to incorporate digitally integrated visuals and decision data designed to amplify the creative process from product ideation to product presentation. Externally, the company’s strategy comes to life digitally through The World of RH, an online portal where customers can explore and be inspired by the depth and dimension of its brand.
Products and Product Development
The company has positioned RH as a lifestyle brand and design authority by offering expansive merchandise assortments. The company is a merchants of luxury home furnishings, and its products embody the company’s design aesthetic and reflect inspiration from across the centuries and around the globe.
The company has developed a proprietary product development platform that is fully integrated from ideation to presentation. Key aspects of the company’s product development platform are:
Organization
The company has established a collaborative, cross-functional organization leading its product development, sourcing, merchandising, inventory and creative teams. The company’s product teams are focused on maximizing the sales potential of each product category across all channels, which eliminates channel conflicts and functional redundancies.
Process
For many of the company’s products, it works closely with its network of artisan partners who possess specialized product development and manufacturing capabilities and who it considers an extension of the company’s product development team. The company collaborates with its global network of specialty vendors and manufacturers to produce artisanal pieces of high quality and value on a large scale, including both distinctive original designs and reinterpretations of antiques.
Facility
The company has built the RH Center of Innovation, a facility that supports the entire product development process from ideation to presentation across all channels.
The company’s proprietary organization, process and facility enhance its ability to introduce more new products with each collection.
Sales Channels
The company distributes its products through a fully integrated sales platform consists of its retail locations, including RH Galleries and Waterworks Showrooms, in addition to the company’s websites, Sourcebooks, Trade, Contract and Outlets. The company encourages its customers to shop across the company’s channels, which complement one another, and has aligned its business and internal organization to be channel agnostic.
Retail Locations
As of February 1, 2025, the company’s retail locations included RH Galleries, RH Interior Design Office and Waterworks Showrooms:
The company’s Galleries reinforce its luxury brand aesthetic and are highly differentiated from other home furnishings retailers. The company has revolutionized the customer experience by showcasing products in a sophisticated lifestyle setting, consistent with the imagery and product presentation featured within its websites and Sourcebooks. Products in the company’s Galleries are presented in fully appointed rooms, emphasizing collections over individual pieces. This presentation inspires the company’s customers to consider purchasing a full collection of products to replicate the design aesthetic experienced in its Galleries. In addition, the company’s employees use iPads and other devices to allow customers to shop its entire merchandise assortment while in a retail location.
The company pursues a market-based sales strategy whereby it assesses each market’s overall sales potential and how best to approach the market across all the company’s channels. The company’s integrated RH hospitality experience, which includes restaurants and wine bars, has created a unique retail experience that cannot be replicated online, and that the addition of hospitality drives incremental sales of home furnishings in these Galleries.
First, the company has strategically designed its Design Galleries as innovative and adaptable formats, allowing the company to accelerate the introduction of its disruptive product assortments and immersive retail experiences into the market. The company will continue to refine and evolve these formats based on key insights from recent openings, such as RH Palo Alto and RH Newport Beach. Most Design Galleries encompass approximately 30,000 to 50,000 square feet of selling space, seamlessly integrating the company’s hospitality offerings while showcasing its product collections across multiple categories. These Galleries also house interior design offices and presentation rooms where the company’s designers collaborate with clients to bring their projects to life.
Second, the company will continue to develop and open larger bespoke Design Galleries in the top metropolitan markets, similar to those it opened in New York, Chicago and San Francisco. The company opened its first bespoke international location, RH England.
Third, the company will continue to open smaller scale Design Galleries and bespoke Design Galleries in neighborhoods, towns and small cities where the wealthy and affluent live, visit and vacation. These locations are thoughtfully tailored to reflect the local culture and are proportionate to each market’s potential. Examples include RH Yountville and RH Montecito, along with forthcoming openings in Aspen and Manhasset. Additionally, the company debuted its first Interior Design Office in Palm Desert, California, in December 2024.
The pace of the company’s Gallery openings is influenced by multiple factors, including market conditions and strategic priorities. The company also continues to extend its international footprint, with agreements in place for Design Galleries in select markets outside of North America, including France, the United Kingdom, Italy and Australia. This global expansion aligns with the company’s broader vision of establishing RH as a leading luxury lifestyle brand worldwide.
The company continually analyzes opportunities to selectively consolidate retail locations in connection with openings of its Design Galleries or close retail locations that has been under-performing or are no longer consistent with the company’s brand positioning.
Websites
The company’s primary RH websites, rh.com, rhbabyandchild.rh.com and rhteen.rh.com, provide its customers with the ability to purchase RH merchandise online. Waterworks products are sold online through the waterworks.com and rh.com websites.
The company’s websites allow its customers to experience the unique lifestyle settings reflected in the company’s Sourcebooks and throughout its Galleries and Showrooms, and to shop all of the company’s product assortment. The company updates its websites regularly to reflect new products, product availability and occasional special offers.
The RH websites also offer room-based navigation, which allows the customer to envision and shop items by room or by product, expanding on the richness of the online experience. Customers can search the websites for products by size or color, browse through the company’s extensive product categories and see detailed information about each item and collection, such as dimensions, materials and care instructions. Additionally, customers can select swatches and view merchandise displayed with different color, finish and material options.
Sourcebooks
The company produces a series of catalogs, which it refers to as Sourcebooks, to showcase the company’s merchandise assortment. The company’s Sourcebooks include RH Interiors, RH Contemporary, RH Modern, RH Outdoor, and RH Baby & Child and TEEN. The company’s Sourcebooks are one of its primary branding and advertising vehicles. The company has found that merchandise assortments displayed in its Sourcebooks contribute to increased sales of those products across all the company’s channels. As in the company’s Galleries, its Sourcebooks present the company’s merchandise in lifestyle settings that reflect its unique design aesthetic. The company’s Sourcebooks also feature profiles of select artisan vendors and other compelling editorial content regarding home decor. All creative work on the company’s Sourcebooks is coordinated in-house in its RH Center of Innovation, providing the company greater control over the brand image presented to its customers.
The company distributes its Sourcebooks throughout countries in which it operates. The company’s customers respond to the Sourcebooks across all its channels, with sales trends closely correlating to the assortments that the company emphasizes and feature prominently in its Sourcebooks, Galleries and websites. The company’s Sourcebooks, in concert with its websites, are a cost-effective means to test new products, and allows the company to launch categories in a disciplined, expeditious and cost-effective manner. The company continues to evaluate and optimize its Sourcebook strategy based on the company’s experience.
The company maintains a database of customer information, including information from its RH Members Program. The company’s customer database includes sales patterns, detailed purchasing information and certain demographic information, as well as mailing and email addresses. The company mails its Sourcebooks to addresses within this database and to addresses provided to the company by third parties. The database, which is maintained in accordance with the company’s privacy policy disclosed on its website, supports the company’s ability to analyze its customers’ buying behaviors across sales channels, facilitates the development of targeted marketing strategies, and supports prospecting new customers. the company’s segment its customer files based on multiple variables, and the company tailors its Sourcebook mailings and emails in response to the purchasing patterns and product needs of the company’s customers. The company continues to improve the segmentation of customer files and the expansion of its customer database.
Trade and Contract
In the Trade channel, the company works directly with residential interior designers and decorators purchasing products for their clients’ residential projects. The company also sells directly to consumers who make purchases with the assistance of their residential interior designer or decorator. The company’s Contract channel supplies products to large-scale, luxury hospitality, commercial and residential development projects globally, working directly with hotel ownership groups and brands, commercial property owners, single-family and multi-family builders and developers and their ecosystem of architecture, interior design and purchasing business partners. These channels enable the company to reach new business customers and the consumers they influence.
Outlet Stores
The company’s outlet stores are branded as RH Outlet or Restoration Hardware Outlet and are typically located in outlet malls, power centers, and freestanding locations. The company’s outlet stores serve as a key part of its reverse logistics platform and provide an efficient means to sell primarily returned merchandise and, to a lesser extent, discontinued and overstock merchandise outside of the company’s core sales channels.
Marketing and Advertising
The company’s Galleries, websites and Sourcebooks are the primary branding and advertising vehicles for the RH brand. In addition, the company employs a variety of marketing and advertising techniques to drive customer traffic across all its channels, strengthen and reinforce the company’s brand image and acquire new customers. These include targeted Sourcebook circulation, email communications, promotional mailings, print advertisements, and public relations activities and events. The company uses its customer database to tailor the company’s programs and increase the efficiency of its marketing and promotional initiatives. The company leverages its marketing and advertising expenses across all the company’s channels as it seeks to optimize the efficiency of the company’s investment. Additionally, the company operates certain brand-elevating assets that also serve as advertising vehicles for the RH brand, including RH Guesthouse New York; RH England, The Gallery at the Historic Aynho Park; RH Yountville, an integration of Food, Wine, Art & Design in the Napa Valley; RH1 & RH2, the company’s private jets available for charter; and RH3, its luxury yacht.
The highly differentiated design aesthetic and environment of the company’s Galleries drives customer traffic not only to its physical spaces but also to the company’s websites. The company’s Sourcebooks and targeted emails further reinforce the RH brand image and drive sales across all its channels. The company also participates in a wide range of other marketing, promotional and public relations activities. These campaigns include media coverage in design, lifestyle, culture/society and specialty publications, as well as in-Gallery events related to new Gallery openings. In addition, the company engages in print advertising in brand-relevant publications such as Architectural Digest, Elle Decor, T: The New York Times Style Magazine, WSJ. Magazine, Business of Home, Luxe Interiors + Design, C Magazine and others.
RH Members Program
The RH Members Program reimagines and simplifies the shopping experience. For an annual fee, the RH Members Program provides a set discount every day on products available on the RH platform, in addition to other benefits, including complimentary design services through the RH Interior Design program and eligibility for preferred financing plans on the RH Credit Card. The RH Members Program excludes purchases through Outlets, Trade, Contract and Hospitality, as well as directly from Waterworks. The RH Members Program allows the company’s customers to shop for what they want, when they want, and receive the greatest value, which has resulted in orders and sales being more evenly distributed throughout the year. During fiscal 2024, the company’s members drove approximately 98% of sales in its core RH business, and the company had approximately 265,000 members at year-end.
Distribution and Delivery
The company manages the distribution and delivery of its products through the company’s distribution centers. The company operates four fulfillment centers servicing RH products, which are located strategically in markets throughout the United States. The company has one fulfillment center in the United States servicing Waterworks products. In addition, the company has one third-party distribution center in Europe and continue to develop its supply chain strategy in connection with the company’s global expansion.
The company operates portions of its home delivery services in 27 key markets to leverage operating costs and improve the company’s customers’ delivery experience, while reducing returns and damage to its products. The company offers a white glove home delivery service for its larger merchandise and furniture categories, where third-party personnel deliver smaller items to the location of the company’s customers’ choice. The company has dramatically enhanced the customer experience while reducing return rates, damages and deliveries per order by enhancing the quality of its delivery providers through metric-based accountability standards.
Intellectual Property
The RH, Restoration Hardware, RH Interiors, RH Contemporary, RH Modern, RH Outdoor, RH Baby & Child, RH TEEN, RH Beach House, RH Ski House, RH Rugs, RH Guesthouse, The World of RH and Waterworks trademarks, among others, are registered or are the subject of pending trademark applications with the United States Patent and Trademark Office and with the trademark registries of several foreign countries. In addition, the company owns many domain names, including rh.com, restorationhardware.com, rhmodern.rh.com, rhbabyandchild.rh.com, rhteen.rh.com, rhbeachouse.com, rhskihouse.com, rhguesthouse.com, waterworks.com and others that include its trademarks.
Seasonality
The company’s quarterly results vary depending upon a variety of factors, including changes in its product offerings and the introduction of new merchandise assortments and categories, changes in retail locations, the timing of Sourcebook releases, and the extent of the company’s realization of the costs and benefits of its numerous strategic initiatives, among other things. For example, the company had historically experienced some seasonality in its business trends as its sales are typically higher in the second fiscal quarter, which correlates to a peak selling season for outdoor items and outdoor furniture (year ended February 2025).
Regulation and Legislation
The company is subject to Section 404 of the Sarbanes-Oxley Act of 2002, as amended, which requires it to maintain internal control over financial reporting and to report any material weaknesses in such internal control.
Some of the company’s products must comply with certain federal and state laws and regulations. For example, some of the company’s products are subject to the Consumer Product Safety Act, as amended by the Consumer Product Safety Improvement Act of 2008 and the Federal Hazardous Substances Act, which empower the Consumer Product Safety Commission (the ‘CPSC’) to establish product bans, substance bans, substance limits, performance requirements, test methods and other compliance verification processes.
Many of the company’s products are subject to the regulations of the California Air Resources Board and the Environmental Protection Agency regarding formaldehyde emissions from composite wood products (e.g., plywood and medium density fiberboard).
The company is subject to regulatory oversight and legal enforcement by a range of government and self-regulatory organizations, including federal, state and local governmental bodies both within the U.S. and in other jurisdictions where it operate such as, among others, the Equal Employment Opportunity Commission, the CPSC, the Federal Trade Commission, U.S. Customs and Border Protection, the U.S. Department of the Treasury’s Office of Foreign Assets Control, the Department of Labor, the SEC, FINRA, the NYSE, the Department of Justice and numerous state and local governmental authorities, including state attorney generals and state agencies. Litigation against the company, depending on the outcome of such claims, could lead to further claims and proceedings, including on new and otherwise unrelated matters, for example, by attracting the attention of plaintiff’s firms or of regulators.
History
The company, a Delaware corporation, was founded in 1980. The company was incorporated in 2011. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017.
