Rh

While we began the year with meaningful debt, almost entirely due to our stock repurchases of $2.2 billion, we also began the year with incredible business momentum and meaningful assets.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

We estimate that our adjusted capital expenditures will decrease to a range of $200 to $250 million in 2026, and $150 to $200 million in 2027 and beyond.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

We remain confident in our ability to make the necessary investments to continue our industry leading growth, while significantly reducing debt and lowering interest expense.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

Our debt is reflective of a washtub bet on ourselves.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

We repurchased 60% of our outstanding shares that greatly benefited our long-term shareholders post the publishing of Mr.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

Buffett s letter in 2016-2017 and repurchased 30% of the outstanding shares during this housing downturn in 2022-2023.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

On a two-year basis revenues increased 12% and demand increased 21%, resulting in significant share gains and strategic separation.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

Adjusted operating margin of 15.1% and adjusted EBITDA margin of 20.6% both increased 340 basis points versus last year inclusive of an approximate 170 basis point drag from investments to support our long-term European expansion.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

1 SECOND QUARTER 2025 FINANCIAL RESULTS AND SHAREHOLDER LETTER The most important news regarding our European expansion was the September 5th opening of RH Paris, our most innovative and immersive brand experience to date.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

3 SECOND QUARTER 2025 FINANCIAL RESULTS AND SHAREHOLDER LETTER Fiscal Year 2025 Revenue Growth of 9% to 11% Adjusted Operating Margin of 13.0% to 14.0% Adjusted EBITDA Margin of 19.0% to 20.0% Free Cash Flow of $250M to $300M The above outlook includes an approximate negative 200 basis point operating margin impact from investments and startup costs to support our international expansion and a 90 basis point impact from tariffs, net of mitigations.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

Third Quarter 2025 Revenue Growth of 8% to 10% Adjusted Operating Margin of 12.0% to 13.0% Adjusted EBITDA Margin of 18.0% to 19.0% The above outlook includes an approximate negative 270 basis point operating margin impact from investments and startup costs to support our international expansion and a 120 basis point impact from tariffs, net of mitigations.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

TO OUR PEOPLE, PARTNERS AND SHAREHOLDERS RH continued to generate industry leading growth in the second quarter as revenue increased 8.4%, and demand increased 13.7% despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

As a reminder, we expect the approximate 5.4-point variance between demand and revenues due to tariff disruptions will shift from the second quarter and be realized as revenues over the second half of 2025.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

2 SECOND QUARTER 2025 FINANCIAL RESULTS AND SHAREHOLDER LETTER TARIFFS, TARIFFS AND THE POSSIBILITY FOR MORE TARIFFS Just when you might have thought the tariff conversation was complete, the announcement of a new furniture investigation and the possibility for additional furniture tariffs, on top of existing furniture tariffs, and incremental steel and aluminum tariffs were introduced with the goal of returning furniture manufacturing back to America.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

While strong brands like ours will benefit from the likely dislocation and consolidation more tariffs will have on our industry, many smaller companies will have difficulty surviving these levels of tariffs.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

Additionally, more tariffs on furniture could also result in U.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025

to countries closer to their international clients, avoiding freight costs and the likelihood of counter tariffs.

SEC original ↗Rh — Earnings release (8-K exhibit)EX-99Sep 11, 2025