RH (NYSE: RH), a curator of design and luxury lifestyle products, reported its fourth quarter and fiscal year results for 2024, which ended on February 1, 2025. The company experienced a substantial rise, with fourth-quarter GAAP net revenues increasing 10% to $812 million, compared to $738 million in the prior year. For the same period, GAAP operating income rose by 9% to $70 million, while adjusted operating income surged by 38% to $92 million.

The adjusted operating margin improved to 11.3% from 9.1% in the same quarter last year. On a comparable 13-week basis, net revenues increased by 18%, with operating income rising by 25% and adjusted operating income increasing by 57%.

For the fiscal year 2024, RH reported GAAP net revenues of $3.181 billion, an increase of 5% from $3.029 billion in the previous year. The GAAP operating margin stood at 10.1%, while the adjusted operating margin was consistent at 11.3%. Adjusted net income for the year reached $107 million, while GAAP net income was $72 million.

Notably, total demand for RH products increased by 9% for the year, and RH brand demand specifically grew by 12%, reflecting a positive trend across their luxury offerings. The company’s adjusted EBITDA margin for the fiscal year was 16.9%, indicating an overall strengthening of financial performance.

Cash flow figures revealed a net cash provided by operating activities of $17.1 million in 2024, contrasting with the previous year’s net cash flow of $202.2 million. The total debt stood at $2.624 billion, resulting in a ratio of total net debt to adjusted EBITDA of 4.8.

In terms of guidance, RH anticipates revenue growth of between 10% and 13% for fiscal year 2025, with an adjusted operating margin projected at 14% to 15%. The first quarter of 2025 is expected to see growth in revenue by 12.5% to 13.5%, with an adjusted operating margin of 6.5% to 7.0%.

Overall, the numbers reflect a strong operational performance, with notable increases in profitability and margins against the backdrop of a challenging housing market environment.