RH (RH) Q4 2025 Earnings Call

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WEBVTT 00:00:01.027 -- 00:00:04.492 welcome to the world of rh 00:00:04.492 -- 00:00:09.560 albert einstein's three rules of work out of clutter find simplicity 00:00:09.560 -- 00:00:15.049 from discord find harmony in the middle of difficulty lies opportunity 00:00:15.049 -- 00:00:20.477 seem especially relevant at this moment we're compounding clutter from tariffs 00:00:20.477 -- 00:00:25.766 global discord as a result of war and the most dire housing market in decades 00:00:25.766 -- 00:00:30.706 can make it difficult to separate the signal from the noise It's important to remember 00:00:30.706 -- 00:00:36.413 necessity is the mother of invention, and our most important innovations were birthed 00:00:36.413 -- 00:00:41.980 during the most uncertain times. Transforming a nearly bankrupt restoration hardware 00:00:41.980 -- 00:00:47.107 into RH, the leading luxury home brand in North America, was not a feat 00:00:47.107 -- 00:00:52.414 for the faint of heart. While the external challenges are somewhat familiar, our internal 00:00:52.414 -- 00:00:57.473 opportunities are massively different. We're not closing stores and fighting 00:00:57.473 -- 00:01:03.160 to survive. We're building a never-seen-before brand that's positioned to thrive. 00:01:03.160 -- 00:01:07.605 Before we get into the details of our strategy, let's start with a few facts that should 00:01:07.605 -- 00:01:11.310 quiet some of the noise. In 2025, 00:01:11.310 -- 00:01:14.774 RH achieved revenue growth of 8% and 00:01:14.774 -- 00:01:17.518 two-year growth of 15%, 00:01:17.518 -- 00:01:22.183 far outpacing our furniture industry peers by 8 to 30 points. 00:01:22.183 -- 00:01:27.400 Adjusted EBITDA reached $597 million, or 17.3% of 00:01:27.400 -- 00:01:33.190 revenues versus $539 million or 16.9% of...