RH (RH)
Net profit margin
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 72,412 | 69,876 | 48,089 | 16,950 | 18,388 | 83,484 | 148,580 | 192,657 | 236,734 | 267,153 | 297,572 | 354,442 | 434,827 | 450,206 | 544,021 | 592,306 | 617,076 | 678,900 | 662,288 | 741,989 |
| Revenue (ttm) | US$ in thousands | 3,180,753 | 3,048,367 | 2,974,895 | 2,896,465 | 2,867,490 | 2,987,949 | 3,007,166 | 2,995,103 | 2,998,010 | 2,970,030 | 3,176,231 | 3,276,578 | 3,567,306 | 3,737,786 | 3,731,400 | 3,794,632 | 3,674,241 | 3,737,692 | 3,756,281 | 3,842,399 |
| Net profit margin | 2.28% | 2.29% | 1.62% | 0.59% | 0.64% | 2.79% | 4.94% | 6.43% | 7.90% | 8.99% | 9.37% | 10.82% | 12.19% | 12.04% | 14.58% | 15.61% | 16.79% | 18.16% | 17.63% | 19.31% |
January 31, 2025 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $72,412K ÷ $3,180,753K
= 2.28%
The net profit margin of RH has displayed a declining trend over the past few years, starting at a relatively high level of 19.31% in January 29, 2022, and gradually decreasing to 2.28% in January 31, 2025. This indicates that the company is generating less profit for every dollar of sales.
The fluctuations in the net profit margin may suggest various factors impacting the company's profitability, such as changes in revenue, cost structure, or efficiency in managing expenses. The decreasing trend in the net profit margin may raise concerns among investors and stakeholders about the company's overall financial health and sustainability.
Management should closely monitor and address the declining trend in the net profit margin to ensure the company remains profitable and competitive in the market. Strategies to improve profitability might include cost-cutting measures, revenue growth initiatives, operational efficiency improvements, or product pricing adjustments. It is crucial for RH to implement strategic measures to reverse the declining trend and enhance its profitability in the future.