Global home furnishings company RH has reported record results during its first quarter with sales reaching almost $1bn.
According to its latest trading update for the period ended 30 April 2022, total sales increased 11% to $957m from $861m a year ago, and up 98% versus 2020, representing one of the highest two-year growth rates in RH’s history.
Net income resulted at $201m, up 54% compared with $131m last year.
On the UK, the company said the expansion of the RH brand globally, beginning with the opening of RH England, with The Gallery located at the historic Aynho Park, a 17th-century, 73-acre estate in the English countryside, that will introduce RH to the UK in a ‘dramatic and unforgettable fashion’.
“We believe 2022 will mark the beginning of the next chapter of growth and innovation for the RH brand,” the company said as it looks to expand into other markets alongside the UK.
Commenting on the results, Gary Friedman, chairman and CEO of RH, said: “While there has been a widespread return to discounting across our industry as evidenced by the barrage of sale emails filling our inboxes, and there may be short-term risk of market share loss by choosing not to promote, we believe there is certain long-term risk of brand erosion and model destruction once you begin down that path.
“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 now reflect those of the leading luxury brands as first quarter adjusted operating margin reached 24.7% vs. 22.6% a year ago.”