RH (RH)
Operating profit margin
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 322,587 | 366,071 | 366,071 | 722,157 | 722,157 |
| Revenue | US$ in thousands | 3,180,750 | 2,836,370 | 3,029,130 | 3,590,480 | 3,539,340 |
| Operating profit margin | 10.14% | 12.91% | 12.09% | 20.11% | 20.40% |
January 31, 2025 calculation
Operating profit margin = Operating income ÷ Revenue
= $322,587K ÷ $3,180,750K
= 10.14%
The operating profit margin of RH has shown a declining trend over the periods analyzed. Beginning at 20.40% in January 28, 2023, it dropped slightly to 20.11% by January 31, 2023. However, there was a more significant decrease noted as the operating profit margin fell to 12.09% on January 31, 2024, and further to 12.91% by February 3, 2024. The trend continued with a decline to 10.14% on January 31, 2025.
This downward trajectory in the operating profit margin indicates a potential decrease in the efficiency of RH in generating profits from its core operations over the specified periods. It may be beneficial for RH to analyze the causes behind this trend and implement strategies to improve operational efficiency and profitability.