RH (RH)
Pretax margin
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 88,591 | 155,822 | 166,697 | 439,339 | 437,284 |
| Revenue | US$ in thousands | 3,180,750 | 2,836,370 | 3,029,130 | 3,590,480 | 3,539,340 |
| Pretax margin | 2.79% | 5.49% | 5.50% | 12.24% | 12.35% |
January 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $88,591K ÷ $3,180,750K
= 2.79%
To analyze the pretax margin trend of RH, we will examine the data provided.
- In January 28, 2023, the pretax margin was 12.35%. This indicates that for every dollar of revenue generated, the company retained $0.1235 as pretax profit.
- In January 31, 2023, the pretax margin slightly decreased to 12.24%, which suggests a slight decrease in profitability compared to the previous period.
- By January 31, 2024, the pretax margin experienced a notable decline to 5.50%, signifying a significant decrease in profitability. This decrease may be attributed to various factors impacting the company's operations or financial performance.
- Following a similar trend, by February 3, 2024, the pretax margin remained low at 5.49%, indicating that the company's profitability continued to face challenges.
- Lastly, by January 31, 2025, the pretax margin further decreased to 2.79%. This persistent decline in pretax margin over the periods analyzed may raise concerns about the company's ability to efficiently manage its costs and generate profits from its operations.
In summary, based on the data provided, we observe a declining trend in RH's pretax margin over the analyzed periods. It is essential for the company to address the factors contributing to this downward trend to improve its profitability and financial performance in the future.