RH 10-Q: Lease Commitments and Liabilities Detailed

TL;DR

RH's 10-Q shows $18.48M in current liabilities, with significant lease obligations detailed.

AI Summary

RH (Restoration Hardware) filed its 10-Q for the period ending August 3, 2024. The company reported current liabilities including Accounts Payable and Accrued Liabilities totaling $18.48 million, a slight increase from $18.32 million in the prior period. The filing also references various lease-related assets and liabilities, indicating ongoing operational and financing lease commitments.

Why It Matters

This filing provides insight into RH's short-term financial obligations and its long-term lease strategy, which can impact its operational flexibility and profitability.

Risk Assessment

Risk Level: medium — The filing details significant lease liabilities, which can represent substantial long-term financial commitments for the company.

Key Numbers

• $18.48M — Accounts Payable and Accrued Liabilities (Current) (Represents short-term obligations as of August 3, 2024.)
• $18.32M — Accounts Payable and Accrued Liabilities (Prior Period) (Provides a comparison point for current liabilities.)

Key Players & Entities

• RH (company) — Filer of the 10-Q
• Restoration Hardware (company) — Former name of RH
• August 3, 2024 (date) — End of the reporting period
• $18.48 million (dollar_amount) — Accounts Payable and Accrued Liabilities (Current)
• $18.32 million (dollar_amount) — Accounts Payable and Accrued Liabilities (Prior Period)

FAQ

Key Financial Figures

• $0.0001 — tion 12(b) of the Act: Common Stock , $0.0001 par value RH New York Stock Exchang

Filing Documents

• rh-20240803x10q.htm (10-Q) — 2895KB
• rh-20240803xex31d1.htm (EX-31.1) — 15KB
• rh-20240803xex31d2.htm (EX-31.2) — 13KB
• rh-20240803xex32d1.htm (EX-32.1) — 9KB
• rh-20240803xex32d2.htm (EX-32.2) — 9KB
• rh-20240803x10q004.jpg (GRAPHIC) — 4KB
• rh-20240803x10q007.jpg (GRAPHIC) — 3KB
• 0001558370-24-012768.txt ( ) — 11957KB
• rh-20240803.xsd (EX-101.SCH) — 73KB
• rh-20240803_cal.xml (EX-101.CAL) — 108KB
• rh-20240803_def.xml (EX-101.DEF) — 308KB
• rh-20240803_lab.xml (EX-101.LAB) — 601KB
• rh-20240803_pre.xml (EX-101.PRE) — 490KB
• rh-20240803x10q_htm.xml (XML) — 2369KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) as of August 3, 2024 and February 3, 2024 3 Condensed Consolidated Statements of Income (Unaudited) for the three and six months ended August 3, 2024 and July 29, 2023 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended August 3, 2024 and July 29, 2023 5 Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) for the three and six months ended August 3, 2024 and July 29, 2023 6 Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended August 3, 2024 and July 29, 2023 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 10 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 49 Item 4.

Controls and Procedures

Controls and Procedures 50

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 52 Item 4. Mine Safety Disclosures 52 Item 5. Other Information 52 Item 6. Exhibits 53

Signatures

Signatures 54 2 | 2024 SECOND QUARTER FORM 10-Q TABLE OF CONTENTS Table of Contents PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS RH CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) AUGUST 3, FEBRUARY 3, 2024 2024 (in thousands) ASSETS Cash and cash equivalents $ 78,333 $ 123,688 Accounts receivable—net 66,644 55,058 Merchandise inventories 917,331 754,126 Prepaid expense and other current assets 156,975 169,030 Total current assets 1,219,283 1,101,902 Property and equipment—net 1,753,727 1,685,858 Operating lease right-of-use assets 624,641 625,801 Goodwill 140,997 141,033 Tradenames, trademarks and other intangible assets 76,243 75,927 Deferred tax assets 143,975 143,986 Equity method investments 130,790 128,668 Other non-current assets 286,740 240,722 Total assets $ 4,376,396 $ 4,143,897 LIABILITIES AND STOCKHOLDERS' DEFICIT Accounts payable and accrued expenses $ 495,961 $ 366,585 Deferred revenue and customer deposits 302,526 282,812 Convertible senior notes due 2024—net 41,890 41,835 Operating lease liabilities 86,106 85,523 Other current liabilities 84,071 96,113 Total current liabilities 1,010,554 872,868 Asset based credit facility 25,000 — Term loan B—net 1,911,519 1,919,885 Term loan B-2—net 468,363 468,696 Real estate loans—net 17,596 17,766 Non-current operating lease liabilities 573,204 576,166 Non-current finance lease liabilities 584,677 566,829 Deferred tax liabilities 8,540 8,442 Other non-current obligations 11,660 10,639 Total liabilities 4,611,113 4,441,291 Commitments and contingencies (Note 16) Stockholders' deficit: Preferred stock—$ 0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding as of August 3, 2024 and February 3, 2024 — — Common stock— $ 0.0001 par value per share, 180,000,000 shares authorized, 18,482,697 shares issued and outstanding as of August 3, 2024; 18,315,613 shares issued and outstanding as of February 3, 2024 2 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2024 SECOND QUARTER FORM 10-Q | 3 Table of Contents RH CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED AUGUST 3, JULY 29, AUGUST 3, JULY 29, 2024 2023 2024 2023 (in thousands, except share and per share amounts) Net revenues $ 829,655 $ 800,479 $ 1,556,615 $ 1,539,641 Cost of goods sold 454,898 420,406 865,820 812,023 Gross profit 374,757 380,073 690,795 727,618 Selling, general and administrative expenses 278,630 228,733 540,005 477,038 Income from operations 96,127 151,340 150,790 250,580 Other expenses Interest expense—net 59,262 44,422 116,034 84,238 Other (income) expense—net ( 663 ) ( 186 ) 502 ( 839 ) Total other expenses 58,599 44,236 116,536 83,399 Income before taxes and equity method investments 37,528 107,104 34,254 167,181 Income tax expense 3,717 27,245 1,626 43,830 Income before equity method investments 33,811 79,859 32,628 123,351 Share of equity method investments loss—net 4,859 3,382 7,301 4,984 Net income $ 28,952 $ 76,477 $ 25,327 $ 118,367 Weighted-average shares used in computing basic net income per share 18,458,207 20,960,329 18,391,331 21,503,090 Basic net income per share $ 1.57 $ 3.65 $ 1.38 $ 5.50 Weighted-average shares used in computing diluted net income per share 19,961,610 22,727,560 19,949,657 23,242,585 Diluted net income per share $ 1.45 $ 3.36 $ 1.27 $ 5.09 The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements. 4 | 2024 SECOND QUARTER FORM 10-Q

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Table of Contents RH CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED AUGUST 3, JULY 29, AUGUST 3, JULY 29, 2024 2023 2024 2023 (in thousands) Net income $ 28,952 $ 76,477 $ 25,327 $ 118,367 Net gain from foreign currency translation 5,227 3,380 3,942 5,675 Comprehensive income $ 34,179 $ 79,857 $ 29,269 $ 124,042 The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2024 SECOND QUARTER FORM 10-Q | 5 Table of Contents RH CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) THREE MONTHS ENDED COMMON STOCK TREASURY STOCK ACCUMULATED RETAINED ADDITIONAL OTHER EARNINGS TOTAL PAID-IN COMPREHENSIVE (ACCUMULATED STOCKHOLDERS' SHARES AMOUNT CAPITAL INCOME (LOSS) DEFICIT) SHARES AMOUNT EQUITY (DEFICIT) (in thousands, except share amounts) Balances—May 4, 2024 18,342,797 $ 2 $ 300,189 $ ( 3,223 ) $ ( 586,889 ) — $ — $ ( 289,921 ) Stock-based compensation — — 11,529 — — — — 11,529 Issuance of restricted stock 3,829 — — — — — — — Exercise of stock options 136,071 — 9,496 — — — — 9,496 Net income — — — — 28,952 — — 28,952 Comprehensive income — — — 5,227 — — — 5,227 Balances—August 3, 2024 18,482,697 $ 2 $ 321,214 $ 2,004 $ ( 557,937 ) — $ — $ ( 234,717 ) Balances—April 29, 2023 22,051,251 $ 2 $ 257,616 $ ( 108 ) $ 581,876 — $ — $ 839,386 Stock-based compensation — — 8,538 — — — — 8,538 Issuance of restricted stock 2,961 — — — — — — — Exercise of stock options 40,599 — 4,272 — — — — 4,272 Settlement of convertible senior notes 1,929 — — — — — — — Repurchase of common stock—including excise tax ( 3,698,887 ) — — — — 3,698,887 1,216,635 ( 1,216,635 ) Retirement of treasury stock — — ( 8,623 ) — ( 1,208,012 ) ( 3,698,887 ) ( 1,216,635 ) — Net income — — — — 76,477 — — 76,477 Comprehensive income — — — 3,380 — — — 3,380 Balances—July 29, 2023 18,397,853 $ 2 $ 261,803 $ 3,272 $ ( 549,659 ) — $ — $ ( 284,582 ) 6 | 2024 SECOND QUARTER FORM 10-Q

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Table of Contents RH CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (continued) (Unaudited) SIX MONTHS ENDED COMMON STOCK TREASURY STOCK ACCUMULATED RETAINED ADDITIONAL OTHER EARNINGS TOTAL PAID-IN COMPREHENSIVE (ACCUMULATED STOCKHOLDERS' SHARES AMOUNT CAPITAL INCOME (LOSS) DEFICIT) SHARES AMOUNT EQUITY (DEFICIT) (in thousands, except share amounts) Balances—February 3, 2024 18,315,613 $ 2 $ 287,806 $ ( 1,938 ) $ ( 583,264 ) — $ — $ ( 297,394 ) Stock-based compensation — — 22,073 — — — — 22,073 Issuance of restricted stock 7,829 — — — — — — — Vested and delivered restricted stock units 817 — ( 151 ) — — — — ( 151 ) Exercise of stock options 158,438 — 11,486 — — — — 11,486 Net income — — — — 25,327 — — 25,327 Comprehensive income — — — 3,942 — — — 3,942 Balances—August 3, 2024 18,482,697 $ 2 $ 321,214 $ 2,004 $ ( 557,937 ) — $ — $ ( 234,717 ) Balances—January 28, 2023 22,045,385 $ 2 $ 247,076 $ ( 2,403 ) $ 539,986 — $ — $ 784,661 Stock-based compensation — — 18,718 — — — — 18,718 Issuance of restricted stock 2,961 — — — — — — — Vested and delivered restricted stock units 847 — ( 96 ) — — — — ( 96 ) Exercise of stock options 45,616 — 4,728 — — — — 4,728 Settlement of convertible senior notes 1,931 — — — — — — — Repurchase of common stock—including excise tax ( 3,698,887 ) — — — — 3,698,887 ( 1,216,635 ) ( 1,216,635 ) Retirement of treasury stock — — ( 8,623 ) — ( 1,208,012 ) ( 3,698,887 ) 1,216,635 — Net income — — — — 118,367 — — 118,367 Comprehensive income — — — 5,675 — — — 5,675 Balances—July 29, 2023 18,397,853 $ 2 $ 261,803 $ 3,272 $ ( 549,659

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2024 SECOND QUARTER FORM 10-Q | 7 Table of Contents RH CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) SIX MONTHS ENDED AUGUST 3, JULY 29, 2024 2023 (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 25,327 $ 118,367 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 63,084 55,906 Non-cash operating lease cost 48,358 38,858 Stock-based compensation expense 22,073 18,718 Asset impairments 776 2,894 Non-cash finance lease interest expense 15,329 17,280 Deferred income taxes — 43,717 Share of equity method investments loss—net 7,301 4,984 Other non-cash items 4,366 4,454 Change in assets and liabilities: Accounts receivable ( 11,563 ) 5,332 Merchandise inventories ( 162,577 ) 64,848 Prepaid expense and other assets 6,219 ( 24,680 ) Landlord assets under construction—net of tenant allowances ( 17,461 ) ( 13,959 ) Accounts payable and accrued expenses 122,657 ( 32,205 ) Deferred revenue and customer deposits 19,632 5,216 Other current liabilities ( 13,509 ) ( 2,315 ) Current and non-current operating lease liabilities ( 48,383 ) ( 41,654 ) Other non-current obligations ( 14,323 ) ( 17,406 ) Net cash provided by operating activities 67,306 248,355 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures ( 115,340 ) ( 81,596 ) Equity method investments ( 9,423 ) ( 33,727 ) Net cash used in investing activities ( 124,763 ) ( 115,323 ) 8 | 2024 SECOND QUARTER FORM 10-Q

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Table of Contents RH CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (Unaudited) SIX MONTHS ENDED AUGUST 3, JULY 29, 2024 2023 (in thousands) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under asset based credit facility 25,000 — Repayments under term loans ( 12,500 ) ( 12,500 ) Repayments under real estate loans ( 16 ) ( 13 ) Repayments under promissory and equipment security notes — ( 1,160 ) Repayments of convertible senior notes — ( 1,696 ) Principal payments under finance lease agreements—net of tenant allowances ( 11,957 ) ( 5,454 ) Repurchases of common stock—inclusive of excise taxes paid — ( 1,208,290 ) Proceeds from exercise of stock options 11,486 4,728 Tax withholdings related to issuance of stock-based awards ( 151 ) ( 96 ) Net cash provided by (used in) financing activities 11,862 ( 1,224,481 ) Effects of foreign currency exchange rate translation on cash 240 271 Net decrease in cash and cash equivalents and restricted cash ( 45,355 ) ( 1,091,178 ) Cash and cash equivalents and restricted cash Beginning of period—cash and cash equivalents 123,688 1,508,101 Beginning of period—restricted cash — 3,662 Beginning of period—cash and cash equivalents and restricted cash $ 123,688 $ 1,511,763 End of period—cash and cash equivalents 78,333 417,047 End of period—restricted cash — 3,538 End of period—cash and cash equivalents and restricted cash $ 78,333 $ 420,585 Non-cash transactions: Property and equipment additions in accounts payable and accrued expenses at period-end $ 38,654 $ 25,140 Landlord asset additions in accounts payable and accrued expenses at period-end 12,530 2,863 Excise tax from share repurchases in accounts payable and accrued expenses at period-end 11,988 12,045 The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2024 SECOND QUARTER FORM 10-Q | 9 Table of Contents RH NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1—THE COMPANY Nature of Business RH, a Delaware corporation, together with its subsidiaries (collectively, "we," "us," "our" or the "Company"), is a leading retailer and luxury lifestyle brand operating primarily in the home furnishings market. Our curated and fully integrated assortments are presented consistently across our sales channels, including our retail locations, websites and Sourcebooks. We offer merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, dcor, outdoor and garden, and baby, child and teen furnishings. As of August 3, 2024, we operated a total of 72 RH Galleries and 39 RH Outlet stores, one RH Guesthouse and 14 Waterworks Showrooms throughout the United States and Canada as well as in the United Kingdom, Germany, Belgium and Spain. We also have sourcing operations in Shanghai and Hong Kong. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared from our records and, in our senior leadership team's opinion, include all adjustments, consisting of normal recurring adjustments, necessary to fairly state our financial position as of August 3, 2024, and the results of operations for the three and six months ended August 3, 2024 and July 29, 2023. Our current fiscal year, which consists of 52 weeks, ends on February 1, 2025 ("fiscal 2024"). The condensed consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, as well as the financial information of variable interest entities ("VIEs") where we represent the primary beneficiary and have the power to direct the activities that most significantly impact the entity's performance. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation p

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Table of Contents NOTE 2—RECENTLY ISSUED ACCOUNTING STANDARDS New Accounting Standards or Updates Not Yet Adopted Segment Reporting: Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (" ASU") 2023-07—Improvements to Reportable Segment Disclosures . This new guidance is designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. Early adoption is permitted. We are currently assessing the impact that adopting this ASU will have on our condensed consolidated financial statements. Income Taxes: Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09 — Improvements to Income Tax Disclosures . This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring consistent categories and greater disaggregation of information in the rate reconciliation as well as income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the impact that adopting this ASU will have on our condensed consolidated financial statements. NOTE 3—PREPAID EXPENSE AND OTHER ASSETS Prepaid expense and other current assets consist of the following: AUGUST 3, FEBRUARY 3, 2024 2024 (in thousands) Vendor deposits $ 28,196 $ 26,409 Prepaid expenses 27,318 42,089 Capitalized catalog costs 25,866 27,856 Federal and state tax receivable 18,075 20,441 Value added tax (VAT) receivable 7,748 6,5

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2024 SECOND QUARTER FORM 10-Q | 11 Table of Contents Other non-current assets consist of the following: AUGUST 3, FEBRUARY 3, 2024 2024 (in thousands) Landlord assets under construction—net of tenant allowances $ 160,690 $ 118,897 Initial direct costs prior to lease commencement 72,705 66,333 Capitalized cloud computing costs—net (1) 24,693 22,646 Other deposits 7,502 7,913 Vendor deposits—non-current 5,388 8,862 Deferred financing fees 2,016 2,520 Other non-current assets 13,746 13,551 Total other non-current assets $ 286,740 $ 240,722 (1) Presented net of accumulated amortization of $ 24 million and $ 19 million as of August 3, 2024 and February 3, 2024, respectively. NOTE 4—GOODWILL, TRADENAMES, TRADEMARKS AND OTHER INTANGIBLE ASSETS Goodwill, tradenames, trademarks and other intangible assets activity for the RH Segment and Waterworks consists of the following: RH SEGMENT WATERWORKS TRADENAMES, TRADENAMES, TRADEMARKS AND TRADEMARKS AND OTHER INTANGIBLE OTHER INTANGIBLE GOODWILL ASSETS GOODWILL (1) ASSETS (2) (in thousands) February 3, 2024 $ 141,033 $ 58,927 $ — $ 17,000 Additions — 316 — — Foreign currency translation ( 36 ) — — — August 3, 2024 $ 140,997 $ 59,243 $ — $ 17,000 (1) Waterworks reporting unit goodwill of $ 51 million recognized upon acquisition in fiscal 2016 was fully impaired as of fiscal 2018. (2) Presented net of an impairment charge of $ 35 million recognized in prior fiscal years. There are no goodwill, tradenames, trademarks and other intangible assets for the Real Estate segment. 12 | 2024 SECOND QUARTER FORM 10-Q

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Table of Contents NOTE 5—VARIABLE INTEREST ENTITIES Consolidated Variable Interest Entities and Noncontrolling Interests In fiscal 2022, we formed eight privately-held limited liability companies (each, a "Member LLC" and collectively, the "Member LLCs" or the "consolidated variable interest entities") for real estate development activities related to our Gallery transformation and global expansion strategies. The carrying amounts and classification of the Member LLCs' assets and liabilities included in the condensed consolidated balance sheets were as follows: AUGUST 3, FEBRUARY 3, 2024 2024 (in thousands) ASSETS Cash and cash equivalents $ 9,349 $ 8,918 Prepaid expense and other current assets 1,197 1,876 Total current assets 10,546 10,794 Property and equipment—net (1) 271,210 256,523 Other non-current assets 7 6 Total assets $ 281,763 $ 267,323 LIABILITIES Accounts payable and accrued expenses $ 2,940 $ 8,735 Other current liabilities 304 1,041 Total current liabilities 3,244 9,776 Real estate loans—net (2) 17,596 17,766 Other non-current obligations 960 947 Total liabilities $ 21,800 $ 28,489 (1) Includes $ 53 million and $ 77 million of construction in progress as of August 3, 2024 and February 3, 2024, respectively. (2) Real estate loans are secured by the assets of each respective Member LLC and the associated creditors do not have recourse against RH's general assets. Excludes $ 0.3 million and $ 0.1 million of current obligations related to such loans that are included in other current liabilities on the condensed consolidated balance sheets as of August 3, 2024 and February 3, 2024, respectively. On August 3, 2022, a Member LLC as the borrower executed a Secured Promissory Note (the "Secured Promissory Note") with a third-party in an aggregate principal amount equal to $ 2.0 million with a maturity date of August 1, 2032. The Secure

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 2024 SECOND QUARTER FORM 10-Q | 13 Table of Contents Our maximum exposure to loss is the carrying value of each of the equity method investments as of August 3, 2024. During the three and six months ended August 3, 2024 and July 29, 2023, we did no t receive any distributions or have any undistributed earnings of equity method investments. NOTE 6—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accounts payable and accrued expenses consist of the following: AUGUST 3, FEBRUARY 3, 2024 2024 (in thousands) Accounts payable $ 293,810 $ 192,345 Accrued compensation 50,875 43,840 Accrued occupancy 29,212 29,144 Accrued sales and use tax 28,917 26,823 Accrued freight and duty 18,650 14,333 Accrued legal settlements (1) 16,645 16,704 Excise tax payable on share repurchases 11,988 11,988 Accrued professional fees 8,905 5,754 Accrued legal contingencies (1) 2,237 2,795 Other accrued expenses 34,722 22,859 Total accounts payable and accrued expenses $ 495,961 $ 366,585 (1) Refer to Note 16 Commitments and Contingencies . Reorganization We implemented a restructuring on March 24, 2023 that included workforce and expense reductions in order to improve and simplify our organizational structure, streamline certain aspects of our business operations and better position us for further growth. The workforce reduction associated with the initiative included the elimination of numerous leadership and other positions throughout the organization, which affected approximately 440 roles. The reorganization was completed during the first quarter of fiscal 2023. During the six months ended July 29, 2023, we incurred total charges relating to the reorganization of $ 7.6 million consisting primarily of severance costs and related taxes. As of February 3, 2024, we had an immaterial amount accrued within accounts payable and accrued expenses on the condensed consolidate

View Full Filing

View this 10-Q filing on SEC EDGAR