Risk Factors Update Summary

• Identified a material weakness in internal control over financial reporting and related weakness in disclosure controls and procedures. This could impact financial reporting accuracy and timeliness.
• Sales of products are expected to decline significantly from $1.45 billion to $1.3 billion.
• Increased the number of RH Hospitality experiences from 14 to 16, including restaurants and wine bars, enhancing the retail experience.
• The company repurchased approximately 3.9 million shares at an average price of $321 per share.
• Expanded global expansion plans, targeting $20 to $25 billion in annual revenues, with new locations in the UK, Europe, and Australia.
• Capital expenditures increased from $225 million to $295 million, net of cash received.
• Introduced new business initiatives, including RH Guesthouses, private jets, and a luxury yacht, potentially impacting profitability.
• The company has $42 million remaining in aggregate principal amount of convertible notes.
• Fluctuations in quarterly results due to various factors, such as new product introductions and operational risks, may affect growth and profitability.
• The company's adjusted capital expenditures were $295 million in fiscal 2023.
• Enhanced sourcing strategy, with approximately 25 vendors accounting for 75% of purchase dollar volume, potentially impacting product costs and quality.
• The company repurchased shares at an average price of $321 per share.
• Increased the number of outlet stores from 37 to 42, serving as a key sales channel and contributing to revenue growth.
• The company faces risks associated with labor organizing activities that could negatively impact operations.