RH (RH)
Net profit margin
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,412 | 127,561 | 127,561 | 528,642 | 528,642 |
| Revenue | US$ in thousands | 3,180,750 | 2,836,370 | 3,029,130 | 3,590,480 | 3,539,340 |
| Net profit margin | 2.28% | 4.50% | 4.21% | 14.72% | 14.94% |
January 31, 2025 calculation
Net profit margin = Net income ÷ Revenue
= $72,412K ÷ $3,180,750K
= 2.28%
The net profit margin of RH has experienced a downward trend over the period from January 28, 2023, to January 31, 2025. Starting at 14.94% in January 28, 2023, the net profit margin dropped to 14.72% by January 31, 2023, indicating a slight decrease. However, a significant decline was observed in the subsequent periods, with the net profit margin decreasing to 4.21% by January 31, 2024, and then to 4.50% by February 3, 2024. This downward trend continued, with the net profit margin further decreasing to 2.28% by January 31, 2025.
The declining net profit margin suggests that RH is experiencing challenges in maintaining profitability relative to its revenue. It is essential for the company to closely monitor its cost structure and operational efficiency to improve its profitability in the future.