RH (RH)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.48% | 48.97% | 45.86% | 50.47% | 51.20% |
| Operating profit margin | 10.14% | 12.91% | 12.09% | 20.11% | 20.40% |
| Pretax margin | 2.79% | 5.49% | 5.50% | 12.24% | 12.35% |
| Net profit margin | 2.28% | 4.50% | 4.21% | 14.72% | 14.94% |
The Gross Profit Margin for RH has shown a slight decrease from 51.20% in January 28, 2023, to 44.48% in January 31, 2025. This trend indicates a decline in the percentage of revenue retained after accounting for the cost of goods sold.
RH's Operating Profit Margin has also seen a downward trend, decreasing from 20.40% in January 28, 2023, to 10.14% in January 31, 2025. This indicates a decrease in the proportion of revenue remaining after deducting operating expenses.
The Pretax Margin for RH has shown a decline from 12.35% in January 28, 2023, to 2.79% in January 31, 2025. This indicates a decrease in the percentage of revenue retained after accounting for all operating expenses and before taxes.
The Net Profit Margin for RH has shown a significant decrease from 14.94% in January 28, 2023, to 2.28% in January 31, 2025. This suggests a substantial decrease in the percentage of revenue retained after accounting for all expenses, including taxes.
Overall, RH's profitability ratios have exhibited a declining trend over the period, indicating potential challenges in managing costs and maintaining efficiency in generating profits. Investors and stakeholders may want to monitor these ratios closely to assess the company's financial performance and sustainability.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.08% | 8.83% | 8.83% | 13.60% | 13.60% |
| Return on assets (ROA) | 1.59% | 3.08% | 3.08% | 9.96% | 9.96% |
| Return on total capital | — | — | — | 75.33% | 68.59% |
| Return on equity (ROE) | — | — | — | 67.37% | 67.37% |
RH's profitability ratios show a declining trend over the years.
1. Operating return on assets (Operating ROA) remained relatively stable at around 13.60% in January 2023 and February 2024, but decreased to 8.83% in January 2024 and further to 7.08% in January 2025. This indicates a decrease in the efficiency of generating operating profits from its assets over time.
2. Return on assets (ROA) also followed a similar trend, starting at 9.96% in January 2023 and declining to 1.59% in January 2025. This ratio reflects the overall profitability of the company in generating profits from its total assets, and the declining trend suggests lower overall profitability over the years.
3. Return on total capital and Return on equity (ROE) data is unavailable for January 31, 2024, and February 3, 2024, indicating a lack of information for these periods. However, for January 28, 2023, the Return on total capital was 68.59% and the ROE was 67.37%, which decreased slightly to 75.33% and 67.37% in January 31, 2023, respectively. Lack of data for the subsequent years makes it challenging to provide a comprehensive analysis of these ratios' trend.
In conclusion, RH's profitability ratios show a declining trend in profitability over the analyzed period, which may suggest potential concerns regarding the company's ability to efficiently utilize its assets and generate profits for its shareholders.