The upscale home-furnishing company announced the following highlights to report a record-breaking fiscal 2019:
- GY GAAP net revenues increased +5.7% to $2.647B
- FY adjusted new revenues increased +5.4% to $2.647B
- FY GAAP operating margin increased 330 basis points to 13.7% vs. 10.4% last year
- FY adjusted operating margin increased 290 basis points to 14.3% vs. 11.4% last year
Adjusted operating margins reached an industry best in 2019. RH also generated $330 million of free cash flow in 2019, with an all-time high ROIC of 35.3%.
RH Chief Executive Officer, Gary Friedman, said that he is “proud of the outstanding results” his team achieved in 2019.
The brand continues to see “a clear path to $5 billion in North American revenue.” Friedman believes there is an opportunity to build a $20 billion global brand as RH expands internationally. They also plan to further develop the RH ecosystem to move the brand beyond just selling products, and instead sell products to conceptualize spaces.
“I would like to thank all of our people and partners whose passion and persistence bring our vision and values to life each and every day as we pursue our quest to become one of the most admired brands in the world,” Friedman noted.
About Restoration Hardware
RH (NYSE:RH) is a curator of design, taste and style in the luxury lifestyle market. The company offers its collections through its retail galleries across North America, the company’s multiple Source Books, and online at RH.com, RHModern.com, RHBabyandChild.com, RHTeen.com and Waterworks.com.