2024-03-28 00:20:02 ET
RH (RH)
Q4 2023 Earnings Conference Call
March 27, 2024 17:00 ET
Corporate Participants
Allison Malkin - ICR
Gary Friedman - Chairman and Chief Executive Officer
Jack Preston - Chief Financial Officer
Jarrett Stuhl - Chief Real Estate & Development Office
Conference Call Participants
Simeon Guttman - Morgan Stanley
Steven Forbes - Guggenheim Securities
Curtis Nagle - Bank of America
Christopher Horvers - JPMorgan
Max Rakhlenko - TD Cowen
Seth Basham - Wedbush Securities
Jonathan Matuszewski - Jefferies
Michael Lasser - UBS
Brad Thomas - KeyBanc Capital Markets
Stephen McManus - BNP Paribas
Presentation
Operator
Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the RH Fourth Quarter 2023 Q&A Call.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions]
I would now like to turn the conference over to Allison Malkin of ICR. Please go ahead.
Allison Malkin
Thank you. Good afternoon, everyone. Thank you for joining us for our fourth quarter fiscal year 2023 earnings conference call.
Joining me today are Gary Friedman, Chairman and Chief Executive Officer, and Jack Preston, Chief Financial Officer.
Before we start, I would like to remind you of our legal disclaimer that we will make certain statements today 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. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially.
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. Please also note that these forward-looking statements reflect our opinion only as of the date of this call, and we undertake no obligation to revive or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Also, during this call, we may discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items.
You will find additional information regarding these non-GAAP financial measures and the reconciliation of these non-GAAP to GAAP measures in today's financial results press release. A live broadcast of this call is also available on the industry relations section of our website at ir.rh.com.
With that, I'll turn the call over to Gary.
Gary Friedman
Thank you, Allison, and good afternoon, everyone.
I'm going to start with our prepared comments, which are included in our press release and shareholder letter. To our people, partners, and shareholders, fiscal 2023 was a year of diversity, innovation, and investment for Team RH as we faced the most challenging housing market in three decades while investing in the most compelling product transformation and platform expansion in our history.
We have positioned the RH brand to gain significant market share in 2024 and beyond while building the foundation for a global expansion across the United Kingdom, Europe, Australia, and the Middle East over the next several years. While aggressively investing in the downturn has put pressure on short-term results, it also positioned us to capitalize on the long-term opportunities that present themselves during times of disruption and dislocation. We've demonstrated our confidence in our strategy by repurchasing 7.6 million shares of our stock during fiscal 2022 and 2023, representing approximately 35% of the shares outstanding, and believe that investment will create meaningful long-term value for our shareholders.
Turning to our fourth quarter and full year results, revenue was negatively impacted by $40 million in the fourth quarter due to the severe January weather and shipping delays related to the ongoing conflict in the Red Sea. We do expect the majority of the deferred revenue will be realized in 2024 when transit times normalize....
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RH (RH) Q4 2023 Earnings Call Transcript