RH (RH)
Net profit margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 127,561 | 528,642 | 688,546 | 271,815 | 220,375 |
| Revenue | US$ in thousands | 2,836,370 | 3,539,340 | 3,668,920 | 2,777,900 | 2,564,930 |
| Net profit margin | 4.50% | 14.94% | 18.77% | 9.78% | 8.59% |
February 3, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $127,561K ÷ $2,836,370K
= 4.50%
The net profit margin of RH has exhibited varying trends over the past five years. From January 30, 2021, to January 28, 2023, there was a notable increase in net profit margin from 9.78% to 14.94%. This indicates an improvement in RH's ability to convert revenue into profit during this period. However, in the subsequent year, the net profit margin surged to 18.77%, reflecting even further efficiency in cost management and revenue generation strategies.
Conversely, in the most recent year, the net profit margin experienced a decline to 4.50%, indicating a reduction in profit generation relative to revenue. This decline could be attributed to various factors such as increased operating expenses or a decrease in sales volume.
Overall, while RH has demonstrated strong profitability in recent years, the significant drop in net profit margin in the latest period may warrant further investigation into the underlying reasons for this decline.
Peer comparison
Feb 3, 2024