#Carpe diem hardware free#

We purchased 1 million shares of our common stock in the second quarter at an average price per share of approximately $255.

#Carpe diem hardware free#

Our business generated $23 million of free cash flow in Q2, ending the quarter with $2.1 billion of cash in our balance sheet, total net debt of $446 million and trailing 12 months adjusted EBITDA of $1.1 billion. Our results are inclusive of investments related to the launch of RH Contemporary, the openings of RH San Francisco and RH Guesthouse, the development of RH International and the rollout of RH In-Your-Home, which led to approximately 400 of the 530 basis points of SG&A deleverage in the quarter. It's that discipline and long-term thinking that has enabled us to set new standards for financial performance in the home furnishings industry, and our results continue to reflect those of the leading luxury brands as we delivered 24.7% adjusted operating margin in the second quarter, also exceeding our outlook. And while there may be short-term risk of market share loss as a result of our choice not to promote, we believe there are certain long-term risks of brand erosion and model destruction once you begin down that path. As we've mentioned, there continues to be widespread discounting across our industry. Gross margin expanded 350 basis points in the second quarter, primarily due to increase in product margins as we continue to resist promoting the business as demand trends continue to slow. Results exceeded our revised guidance due to faster backlog relief despite a deteriorating macro environment. To our people, partners and shareholders, we are pleased to report better-than-expected results as revenue increased to $992 million versus $989 million a year ago, up 40% on a two-year basis from revenues of $709 million. I'm going to start with our letter, as I always do. But particularly, you usually can't find good breakfast in this town.Īt least that's what I believe. So anybody looking for a good place for breakfast, lunch or dinner. And we have the best breakfast by the way in New York City. We'll be - I'll be here through next week, and it is a place you should come by and see. And for those of you in town, hopefully, you'll come by over the next few days and come to say hi.

We are live from RH New York, the RH Guesthouse in New York. Please also note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Please refer to our SEC filings, as well as our press release issued today for a more detailed description of the risk factors that may affect our results. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Joining me today are Gary Friedman, chairman and chief executive officer and Jack Preston, chief financial officer.īefore we start, I would like to remind you of our reliable disclaimer that we will make certain statements that are forward looking within the meaning of the federal securities laws, including statements about the outlook of our business and other matters referenced in our press release issued today.

Thank you for joining us for our second quarter 2022 earnings conference call.