Filed: 11 Sep 19

Document and Entity Information

Document and Entity Information - shares6 Months Ended
Aug. 03, 2019Sep. 06, 2019
Document And Entity Information [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Transition Reportfalse
Document Period End DateAug. 3,
2019
Entity File Number001-35720
Entity Registrant NameRH
Entity Tax Identification Number45-3052669
Entity Incorporation, State or Country CodeDE
Entity Address, Address Line One15 Koch Road, Suite K
Entity Address, City or TownCorte Madera
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code94925
City Area Code415
Local Phone Number924-1005
Title of 12(b) SecurityCommon Stock
Trading SymbolRH
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding18,676,038
Entity Central Index Key0001528849
Current Fiscal Year End Date--02-01
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ2
Amendment Flagfalse

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Current assets:
Cash and cash equivalents $ 11,555 $ 5,803
Accounts receivable-net44,287 40,224
Merchandise inventories480,688 531,947
Asset held for sale21,795 21,795
Prepaid expense and other current assets99,297 104,198
Total current assets657,622 703,967
Property and equipment-net950,594 952,957
Operating lease right-of-use assets421,001 440,504
Goodwill124,370 124,379
Tradenames, trademarks and domain names86,022 86,022
Deferred tax assets35,946 35,603
Other non-current assets112,253 79,586
Total assets2,387,808 2,423,018
Current liabilities:
Accounts payable and accrued expenses289,713 320,497
Deferred revenue and customer deposits165,511 152,595
Operating lease liabilities57,162 66,249
Other current liabilities131,883 109,456
Total current liabilities924,957 992,586
Asset based credit facility524,975 57,500
Non-current operating lease liabilities415,803 437,557
Non-current finance lease liabilities433,591 421,245
Other non-current obligations30,148 32,512
Total liabilities2,565,726 2,461,708
Commitments and contingencies (Note 15)
Stockholders' deficit:
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding as of August 3, 2019 and February 2, 2019
Common stock, $0.0001 par value per share, 180,000,000 shares authorized, 18,591,763 shares issued and outstanding as of August 3, 2019; 20,480,613 shares issued and 20,477,813 shares outstanding as of February 2, 20192 2
Additional paid-in capital355,010 356,422
Accumulated other comprehensive loss(2,780)(2,333)
Accumulated deficit(530,150)(392,538)
Treasury stock-at cost, no shares as of August 3, 2019 and 2,800 shares as of February 2, 2019(243)
Total stockholders' deficit(177,918)(38,690)
Total liabilities and stockholders' deficit2,387,808 2,423,018
Asset based credit facility
Current liabilities:
Asset based credit facility145,000 57,500
Convertible senior notes due 2019
Current liabilities:
Convertible senior notes due-net343,789
FILO term loan
Current liabilities:
Term loan-net119,086
Second lien term loan
Current liabilities:
Term loan-net197,262
Equipment promissory notes
Current liabilities:
Term loan-net42,113
Convertible senior notes due 2020
Current liabilities:
Convertible senior notes due-net280,688
Convertible senior notes due-net271,157
Convertible senior notes due 2023
Current liabilities:
Convertible senior notes due-net $ 257,766 $ 249,151

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesAug. 03, 2019Feb. 02, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized10,000,000 10,000,000
Preferred stock, shares issued0 0
Preferred stock, shares outstanding0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized180,000,000 180,000,000
Common stock, shares issued18,591,763 20,480,613
Common stock, shares outstanding18,591,763 20,477,813
Treasury stock, shares0 2,800

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Income Statement [Abstract]
Net revenues $ 706,514 $ 640,798 $ 1,304,935 $ 1,198,204
Cost of goods sold411,556 372,454 777,163 720,527
Gross profit294,958 268,344 527,772 477,677
Selling, general and administrative expenses190,977 186,521 355,158 347,707
Income from operations103,981 81,823 172,614 129,970
Other expenses
Interest expense-net24,513 15,467 45,631 30,565
(Gain) loss on extinguishment of debt(954)917 (954)917
Total other expenses23,559 16,384 44,677 31,482
Income before income taxes80,422 65,439 127,937 98,488
Income tax expense16,665 2,533 28,458 10,121
Net income $ 63,757 $ 62,906 $ 99,479 $ 88,367
Weighted-average shares used in computing basic net income per share18,465,876 21,925,702 19,221,367 21,735,364
Basic net income per share $ 3.45 $ 2.87 $ 5.18 $ 4.07
Weighted-average shares used in computing diluted net income per share22,324,112 27,496,561 23,629,050 26,363,395
Diluted net income per share $ 2.86 $ 2.29 $ 4.21 $ 3.35

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income $ 63,757 $ 62,906 $ 99,479 $ 88,367
Net gains (losses) from foreign currency translation490 (482)(447)(1,746)
Total comprehensive income $ 64,247 $ 62,424 $ 99,032 $ 86,621

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders Equity (Deficit) - USD ($) $ in ThousandsCommon StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings (Accumulated Deficit)Treasury StockTotal
Balances at Feb. 03, 2018 $ 2 $ 840,765 $ (171) $ 151,575 $ (1,000,326) $ (8,155)
Balances, shares at Feb. 03, 201821,517,338 20,220,132
Stock-based compensation13,879 13,879
Issuance of restricted stock, Shares6,405
Vested and delivered restricted stock units(7,863)(7,863)
Vested and delivered restricted stock units, Shares103,016
Exercise of stock options29,209 29,209
Exercise of stock options, Shares605,480
Repurchases of common stock $ (243)(243)
Repurchases of common stock, Shares(2,800)2,800
Equity component value of convertible note issuance-net89,933 89,933
Sale of common stock warrant51,021 51,021
Purchase of convertible note hedge(91,857)(91,857)
Impact of Topic 606 adoption(21,036)(21,036)
Net income88,367 88,367
Net gains (losses) from foreign currency translation(1,746)(1,746)
Balances at Aug. 04, 2018 $ 2 925,087 (1,917)218,906 $ (1,000,569)141,509
Balances, shares at Aug. 04, 201822,229,439 20,222,932
Balances at May. 05, 2018 $ 2 851,228 (1,435)156,000 $ (1,000,569)5,226
Balances, shares at May. 05, 201821,612,197 20,222,932
Stock-based compensation5,988 5,988
Issuance of restricted stock, Shares6,405
Vested and delivered restricted stock units(7,512)(7,512)
Vested and delivered restricted stock units, Shares82,906
Exercise of stock options26,286 26,286
Exercise of stock options, Shares527,931
Equity component value of convertible note issuance-net89,933 89,933
Sale of common stock warrant51,021 51,021
Purchase of convertible note hedge(91,857)(91,857)
Net income62,906 62,906
Net gains (losses) from foreign currency translation(482)(482)
Balances at Aug. 04, 2018 $ 2 925,087 (1,917)218,906 $ (1,000,569)141,509
Balances, shares at Aug. 04, 201822,229,439 20,222,932
Balances at Feb. 02, 2019 $ 2 356,422 (2,333)(392,538) $ (243) $ (38,690)
Balances, shares at Feb. 02, 201920,477,813 2,800 20,477,813
Balances at May. 04, 2019 $ 2 362,986 (3,270)(356,816) $ (250,275) $ (247,373)
Balances, shares at May. 04, 201918,357,816 2,170,196
Balances at Feb. 02, 2019 $ 2 356,422 (2,333)(392,538) $ (243) $ (38,690)
Balances, shares at Feb. 02, 201920,477,813 2,800 20,477,813
Stock-based compensation10,779 $ 10,779
Issuance of restricted stock, Shares7,014
Vested and delivered restricted stock units(6,234)(6,234)
Vested and delivered restricted stock units, Shares101,641
Exercise of stock options7,223 7,223
Exercise of stock options, Shares172,649
Repurchases of common stock $ (250,032)(250,032)
Repurchases of common stock, Shares(2,167,396)2,167,396
Retirement of treasury stock(13,180)(237,091) $ 250,271
Retirement of treasury stock, Shares(2,170,154)
Net income99,479 99,479
Net gains (losses) from foreign currency translation(447)(447)
Conversion of convertible senior notes $ 4 4
Conversion of convertible senior notes, Shares42 (42)
Balances at Aug. 03, 2019 $ 2 355,010 (2,780)(530,150) $ (177,918)
Balances, shares at Aug. 03, 201918,591,763 18,591,763
Balances at May. 04, 2019 $ 2 362,986 (3,270)(356,816) $ (250,275) $ (247,373)
Balances, shares at May. 04, 201918,357,816 2,170,196
Stock-based compensation5,191 5,191
Issuance of restricted stock, Shares7,014
Vested and delivered restricted stock units(5,984)(5,984)
Vested and delivered restricted stock units, Shares80,400
Exercise of stock options5,997 5,997
Exercise of stock options, Shares146,491
Retirement of treasury stock(13,180)(237,091) $ 250,271
Retirement of treasury stock, Shares(2,170,154)
Net income63,757 63,757
Net gains (losses) from foreign currency translation490 490
Conversion of convertible senior notes $ 4 4
Conversion of convertible senior notes, Shares42 (42)
Balances at Aug. 03, 2019 $ 2 $ 355,010 $ (2,780) $ (530,150) $ (177,918)
Balances, shares at Aug. 03, 201918,591,763 18,591,763

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands3 Months Ended6 Months Ended12 Months Ended
Aug. 03, 2019May 04, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018Feb. 02, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 99,479 $ 88,367
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization $ 25,321 $ 21,354 52,510 41,939
Non-cash operating lease cost33,227 34,118
Amortization of debt discount22,962 17,645
Accretion of debt discount upon settlement of debt(70,482)
Stock-based compensation expense $ 5,300 6,100 10,993 14,092
Non-cash finance lease interest expense5,672 3,319 11,186 6,411
Product recalls(2,106)
Net non-cash charges resulting from inventory step-up380
(Gain) loss on extinguishment of debt(954)917 (954)917
Other non-cash interest expense2,251 1,276
Change in assets and liabilities:
Accounts receivable(504)(9,050)
Merchandise inventories51,189 (24,995)
Prepaid expense and other assets(2,882)(40,646)
Landlord assets under construction(27,555)(27,645)
Accounts payable and accrued expenses(40,073)(31,707)
Deferred revenue and customer deposits12,987 20,800
Other current liabilities3,179 8,179
Current and non-current operating lease liability(44,513)(43,025)
Other non-current obligations(13,761)(8,036)
Net cash provided by operating activities97,133 49,020
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(25,283)(42,916)
Net cash used in investing activities(25,283)(42,916)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing under equipment security notes69,000
Repayments under promissory and equipment security notes(4,993)(31,974)
Debt issuance costs(4,636)
Principal payments under finance leases(4,399)(3,567)
Repurchases of common stock-including commissions(250,032)
Proceeds from issuance of warrants51,021
Purchase of convertible note hedges(91,857)
Proceeds from exercise of stock options7,223 29,209
Tax withholdings related to issuance of stock-based awards(6,234)(7,863)
Payments under promissory notes related to share repurchases(892)
Net cash used in financing activities(66,023)(6,350)
Effects of foreign currency exchange rate translation(75)(124)
Net increase (decrease) in cash and cash equivalents and restricted cash equivalents5,752 (370)
Cash and cash equivalents and restricted cash equivalents
Beginning of period-cash and cash equivalents5,803 5,803 17,907 $ 17,907
Beginning of period-restricted cash equivalents (construction related deposits)7,407 7,407
Beginning of period-cash and cash equivalents and restricted cash equivalents $ 5,803 5,803 25,314 25,314
End of period-cash and cash equivalents11,555 22,199 11,555 22,199 5,803
End of period-restricted cash equivalents (construction related deposits)2,745 2,745
End of period-cash and cash equivalents and restricted cash equivalents $ 11,555 $ 24,944 11,555 24,944 $ 5,803
Non-cash transactions:
Property and equipment additions in accounts payable and accrued expenses at period-end10,875 7,713
Landlord asset additions in accounts payable and accrued expenses at period-end21,055 17,183
Landlord asset additions from unpaid construction related deposits195 517
Reclassification of assets from landlord assets under construction to finance lease right-of-use assets31,131
Issuance of non-current notes payable related to share repurchases from former employees243
Senior notes.
CASH FLOWS FROM FINANCING ACTIVITIES
Debt issuance costs(6,349)
Repayments of convertible senior notes(278,560)
Proceeds from issuance of convertible senior notes335,000
Asset based credit facility
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing302,000 510,000
Repayments(214,500)(709,970)
Term Loan
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing $ 320,000
Repayments $ (80,000)

The Company

The Company6 Months Ended
Aug. 03, 2019
Accounting Policies [Abstract]
The CompanyNOTE 1—THE COMPANY Nature of Business RH, a Delaware corporation, together with its subsidiaries (collectively, the “Company”), is a luxury home furnishings retailer that offers a growing number of categories including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. These products are sold through the Company’s stores, catalogs and websites. As of August 3, 2019, the Company operated a total of 70 RH Galleries and 40 RH outlet stores in 32 states, the District of Columbia and Canada, as well as 15 Waterworks showrooms throughout the United States and in the U.K., and had sourcing operations in Shanghai and Hong Kong. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared from the Company’s records and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments, and revisions due to the adoption of the new lease accounting standard described in Note 2— Recently Issued Accounting Standards Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019 (the “2018 Form 10-K”). Certain prior year amounts have been adjusted to conform to the current period presentation due to the adoption of the new lease accounting standard. Refer to Note 2— Recently Issued Accounting Standards The results of operations for the three and six months ended August 3, 2019 presented herein are not necessarily indicative of the results to be expected for the full fiscal year. Revisions As previously disclosed in our Annual Report on Form 10-K as of and for the year ended February 2, 2019, during the third quarter of fiscal 2018, management determined that the Company had incorrectly reported the impact during the fiscal year ended February 3, 2018 of retiring its common stock in accordance with Accounting Standards Codification (“ASC”) 505 — Equity ​ During the adoption process of the new lease accounting standard (refer to Note 2— Recently Issued Accounting Standards Exit or Disposal Cost Obligations In addition, during the adoption process of the new lease accounting standard, the Company identified an error in its previously reported consolidated statement of cash flows for the quarterly and annual periods in fiscal 2018. This error resulted in an understatement of $9.2 million of net cash provided by operating activities and an understatement of $9.2 million of net cash used in investing activities for each reporting period in fiscal 2018. There was no impact on the condensed consolidated balance sheets, condensed consolidated statements of income or the condensed consolidated statement of stockholders’ equity (deficit) related to this error. Although these errors are not considered to be material to any of the previously issued financial statements, the Company has revised the accompanying unaudited interim financial statements to reflect the correction of these errors. The following are selected line items from the Company’s condensed consolidated statements of cash flows illustrating the effect of the corrections, prior to the adoption of the modified retrospective application of the new lease accounting standard ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended August 4, 2018 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (42,717) ​ $ 9,201 ​ $ (33,516) Net cash provided by operating activities ​ 70,229 ​ 9,201 ​ 79,430 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (61,212) ​ (9,201) ​ (70,413) Net cash used in investing activities ​ (61,212) ​ (9,201) ​ (70,413) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended November 3, 2018 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (23,601) ​ $ 9,201 ​ $ (14,400) Net cash provided by operating activities ​ 127,592 ​ 9,201 ​ 136,793 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (104,403) ​ (9,201) ​ (113,604) Net cash used in investing activities ​ (104,403) ​ (9,201) ​ (113,604) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended February 2, 2019 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (452) ​ $ 9,201 ​ $ 8,749 Net cash provided by operating activities ​ 300,556 ​ 9,201 ​ 309,757 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (136,736) ​ (9,201) ​ (145,937) Net cash used in investing activities ​ (136,736) ​ (9,201) ​ (145,937) ​

Recently Issued Accounting Stan

Recently Issued Accounting Standards6 Months Ended
Aug. 03, 2019
Accounting Changes And Error Corrections [Abstract]
Recently Issued Accounting StandardsNOTE 2—RECENTLY ISSUED ACCOUNTING STANDARDS Accounting for Leases In February 2016, the FASB issued Accounting Standards Update 2016-02— Leases Codification Improvements to Topic 842 (Leases) Leases (Topic 842)—Targeted Improvements The Company adopted the ASUs as of February 3, 2019 using a modified retrospective approach. Under this adoption method, the results of prior comparative periods are presented with an adjustment to opening retained earnings of the earliest comparative period presented. In addition, the Company elected to adopt the package of transition practical expedients, which permitted the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company adopted the policy election to not separate lease and non-lease components for certain asset classes (such as real estate leases), as well as the short-term lease policy election offered under the ASUs whereby the Company does not recognize right of use assets and lease liabilities for leases with terms of 12 months or less. The Company did not apply the hindsight practical expedient upon adoption. As a result of the adoption of the ASUs, the Company recorded an increase to the fiscal 2017 (earliest comparative period) opening retained earnings balance of $4.0 million, inclusive of the tax impact. ​ The following table presents the impact of adopting the ASUs, as well as the correction of an immaterial error as discussed in Note 1— The Company in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 2, 2019 ​ As Reported ​ Adjustments and Other (1) ​ As Adjusted and Revised ASSETS ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 5,803 ​ $ — ​ $ 5,803 Accounts receivable—net ​ 40,224 ​ — ​ 40,224 Merchandise inventories ​ 531,947 ​ — ​ 531,947 Asset held for sale ​ ​ — ​ ​ 21,795 (2) ​ 21,795 Prepaid expense and other current assets ​ 104,719 ​ (521) (3) 104,198 Total current assets ​ 682,693 ​ 21,274 ​ 703,967 Property and equipment—net ​ 863,562 ​ 89,395 (4) 952,957 Operating lease right-of-use assets ​ ​ — ​ ​ 440,504 (5) ​ 440,504 Goodwill ​ 124,379 ​ — ​ 124,379 Tradenames, trademarks and domain names ​ 86,022 ​ — ​ 86,022 Deferred tax assets ​ 30,033 ​ 5,570 (6) 35,603 Other non-current assets ​ 19,345 ​ 60,241 (7) 79,586 Total assets ​ $ 1,806,034 ​ $ 616,984 ​ $ 2,423,018 LIABILITIES AND STOCKHOLDERS’ DEFICIT ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 320,441 ​ $ 56 (8) $ 320,497 Deferred revenue and customer deposits ​ 152,595 ​ — ​ 152,595 Convertible senior notes due 2019—net ​ 343,789 ​ — ​ 343,789 Operating lease liabilities ​ ​ — ​ ​ 66,249 (5) ​ 66,249 Other current liabilities ​ 101,347 ​ 8,109 (1)(9) 109,456 Total current liabilities ​ 918,172 ​ 74,414 ​ 992,586 Asset based credit facility ​ 57,500 ​ — ​ 57,500 Convertible senior notes due 2020—net ​ 271,157 ​ — ​ 271,157 Convertible senior notes due 2023—net ​ 249,151 ​ — ​ 249,151 Financing obligations under build-to-suit lease transactions ​ ​ 228,928 ​ ​ (228,928) (10) ​ — Deferred rent and lease incentives ​ ​ 53,742 ​ ​ (53,742) (10) ​ — Non-current operating lease liabilities ​ — ​ 437,557 (5) 437,557 Non-current finance lease liabilities ​ ​ — ​ ​ 421,245 (9) ​ 421,245 Other non-current obligations ​ 50,346 ​ (17,834) (1)(11) 32,512 Total liabilities ​ 1,828,996 ​ 632,712 ​ 2,461,708 Stockholders’ deficit: ​ ​ ​ ​ Preferred stock ​ — ​ — ​ — Common stock ​ 2 ​ — ​ 2 Additional paid-in capital ​ 356,422 ​ — ​ 356,422 Accumulated other comprehensive loss ​ (2,333) ​ — ​ (2,333) Accumulated deficit ​ (376,810) ​ (15,728) (1)(12) (392,538) Treasury stock ​ (243) ​ — ​ (243) Total stockholders’ deficit ​ (22,962) ​ (15,728) ​ (38,690) Total liabilities and stockholders’ deficit ​ $ 1,806,034 ​ $ 616,984 ​ $ 2,423,018 (1) During the adoption process of the ASUs, the Company identified a lease agreement that was incorrectly accounted for as an impaired lease under ASC 420— Exit or Disposal Cost Obligations in fiscal 2017 and the first quarter of fiscal 2018. Refer to “Revisions” within Note 1— The Company . (2) Represents recognition of asset held for sale under a sale-leaseback transaction. (3) Represents reclassification of prepaid rent to operating lease liabilities and other current liabilities (for finance leases). (4) Represents (i) recognition of finance lease right-of-use assets, partially offset by (ii) derecognition of non-Company owned properties that were capitalized under previously existing build-to-suit accounting policies, (iii) reclassification of construction in progress assets determined to be landlord assets to other non-current assets and (iv) reclassification of initial direct costs related to operating leases to operating lease right-of-use assets. (5) Represents recognition of operating lease right-of-use assets and corresponding current and non-current lease liabilities. The operating lease right-of-use asset also includes the reclassification of deferred rent and unamortized lease incentives related to operating leases and the reclassification of initial direct costs from property and equipment—net. (6) Represents recognition of net deferred tax assets related to the adoption of the ASUs. (7) Primarily represents reclassification from property and equipment—net of construction in progress assets determined to be landlord assets for which the lease has not yet commenced. (8) Represents a reclassification of an accrual for real estate taxes. (9) Represents recognition of the current and non-current finance lease liabilities. The other current liabilities line item also includes the reclassification of current obligations associated with leases previously reported as capital leases to finance lease liabilities. (10) Represents (i) derecognition of liabilities related to non-Company owned properties that were consolidated under previously existing build-to-suit accounting policies and (ii) reclassification of deferred rent and unamortized lease incentives to operating lease right-of-use assets upon adoption of the ASUs. (11) Represents (i) derecognition of the net lease loss liabilities as such balances were reclassified to operating lease right-of-use assets and operating current and non-current liabilities and (ii) the reclassification of non-current obligations associated with leases previously reported as capital leases to finance lease liabilities. (12) Represents a decrease to the consolidated net income for fiscal 2017 and fiscal 2018, as well as an increase of $4.0 million to beginning fiscal 2017 retained earnings related to the adoption of the ASUs. ​ Refer to Note 7— Leases Cloud Computing In August 2018, the FASB issued Accounting Standards Update 2018-15—Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract Accounting Standards Update 2015-05—Customers Accounting for Fees in a Cloud Computing Agreement.

Prepaid Expense and Other Asset

Prepaid Expense and Other Assets6 Months Ended
Aug. 03, 2019
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Prepaid Expense and Other AssetsNOTE 3—PREPAID EXPENSE AND OTHER ASSETS Prepaid expense and other current assets consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Insurance recovery receivable (1) ​ $ 50,171 ​ $ 50,000 Capitalized catalog costs ​ 12,378 ​ 16,178 Vendor deposits ​ 11,407 ​ 11,836 Right of return asset for merchandise ​ 6,645 ​ 5,883 Federal and state tax receivable ​ ​ 1,036 ​ ​ 4,862 Prepaid expense and other current assets ​ 17,660 ​ 15,439 Total prepaid expense and other current assets ​ $ 99,297 ​ $ 104,198 (1) Refer to Note 15— Commitments and Contingencies . Other non-current assets consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Landlord assets under construction ​ $ 94,710 ​ $ 63,159 Promissory note receivable, including interest ​ 5,229 ​ 5,104 Deferred financing fees ​ 3,722 ​ 3,415 Other deposits ​ 5,559 ​ 5,068 Other non-current assets ​ 3,033 ​ 2,840 Total other non-current assets ​ $ 112,253 ​ $ 79,586 ​

Goodwill, Tradenames, Trademark

Goodwill, Tradenames, Trademarks and Domain Names6 Months Ended
Aug. 03, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill, Tradenames, Trademarks and Domain NamesNOTE 4—GOODWILL, TRADENAMES, TRADEMARKS AND DOMAIN NAMES The following sets forth the goodwill, tradenames, trademarks and domain names activity for the RH Segment and Waterworks for the six months ended August 3, 2019 ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ February 2, ​ Currency ​ August 3, ​ ​ 2019 ​ Translation ​ 2019 RH Segment ​ ​ ​ Goodwill ​ $ 124,379 ​ $ (9) ​ $ 124,370 Tradenames, trademarks and domain names ​ 48,563 ​ — ​ 48,563 ​ ​ ​ ​ Waterworks (1) ​ ​ ​ Tradename (2) ​ 37,459 ​ — ​ 37,459 (1) Waterworks reporting unit goodwill of $51.1 million recognized upon acquisition in fiscal 2016 was fully impaired as of February 2, 2019, with $17.4 million and $33.7 million impairment recorded in fiscal 2018 and fiscal 2017, respectively . (2) The Waterworks reporting unit tradename is presented net of an impairment charge of $14.6 million recorded in fiscal 2018.

Accounts Payable, Accrued Expen

Accounts Payable, Accrued Expenses and Other Current Liabilities6 Months Ended
Aug. 03, 2019
Payables And Accruals [Abstract]
Accounts Payable, Accrued Expenses and Other Current LiabilitiesNOTE 5—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accounts payable and accrued expenses consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Accounts payable ​ $ 145,583 ​ $ 183,039 Accrued compensation ​ 47,979 ​ 64,192 Accrued freight and duty ​ 24,115 ​ 20,787 Accrued sales taxes ​ 18,743 ​ 18,354 Accrued catalog costs ​ 14,490 ​ 10,276 Accrued occupancy ​ 11,528 ​ 10,839 Accrued professional fees ​ 3,442 ​ 2,050 Other accrued expenses ​ 23,833 ​ 10,960 Total accounts payable and accrued expenses ​ $ 289,713 ​ $ 320,497 ​ Other current liabilities consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Provision for legal settlement (1) ​ $ 50,171 ​ $ 50,000 Allowance for sales returns ​ ​ 22,380 ​ ​ 19,821 Current portion of debt ​ 21,514 ​ 892 Unredeemed gift card and merchandise credit liability ​ 17,177 ​ 17,192 Finance lease liabilities ​ ​ 8,127 ​ ​ 9,184 Product recall reserve ​ 4,647 ​ 7,767 Federal tax payable ​ 2,413 ​ 719 Other current liabilities ​ 5,454 ​ 3,881 Total other current liabilities ​ $ 131,883 ​ $ 109,456 (1) Refer to Note 15— Commitments and Contingencies. Contract Liabilities The Company defers revenue associated with merchandise delivered via the home-delivery channel. The Company expects that substantially all of the deferred revenue, customer deposits and deferred membership fees as of August 3, 2019 will be recognized within the next six months as the performance obligations are satisfied. In addition, the Company defers revenue when cash payments are received in advance of performance for unsatisfied obligations related to its gift cards and merchandise credits. During the three months ended August 3, 2019 and August 4, 2018, the Company recognized $4.6 million and $4.8 million, respectively, of revenue related to previous deferrals related to its gift cards and merchandise credits. During the six months ended August 3, 2019 and August 4, 2018, the Company recognized $9.3 million and $9.7 million, respectively, of revenue related to previous deferrals related to its gift cards and merchandise credits. During both the three months ended August 3, 2019 and August 4, 2018, the Company recorded gift card breakage of $0.4 million. During both the six months ended August 3, 2019 and August 4, 2018, the Company recorded gift card breakage of $0.8 million. The Company expects that approximately 70% of the remaining gift card and merchandise credit liabilities as of August 3, 2019 will be recognized within the next twelve months as the gift cards are redeemed by customers.

Other Non-Current Obligations

Other Non-Current Obligations6 Months Ended
Aug. 03, 2019
Other Liabilities Disclosure [Abstract]
Other Non-Current ObligationsNOTE 6—OTHER NON-CURRENT OBLIGATIONS Other non-current obligations consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Notes payable for share repurchases ​ $ 18,741 ​ $ 18,741 Unrecognized tax benefits ​ 3,222 ​ 2,992 Rollover units and profit interests (1) ​ 2,850 ​ 2,637 Deferred contract incentive (2) ​ 1,786 ​ 2,976 Other non-current obligations ​ 3,549 ​ 5,166 Total other non-current obligations ​ $ 30,148 ​ $ 32,512 (1) Represents rollover units and profit interests associated with the acquisition of Waterworks. Refer to Note 14 — Stock-Based Compensation . (2) Represents the non-current portion of an incentive payment received in relation to a 5-year service agreement, which is amortized over the term of the agreement. .

Leases

Leases6 Months Ended
Aug. 03, 2019
Leases [Abstract]
LeasesNOTE 7—LEASES Accounting Policy The Company leases nearly all of its retail and outlet store locations, corporate headquarters, distribution and home delivery facilities, as well as other storage and office space. The initial lease terms of the Company’s real estate leases generally range from ten to fifteen years , and certain leases contain renewal options for up to an additional 25 years , the exercise of which is at the Company’s sole discretion. In recognizing the lease right-of-use assets and lease liabilities, the Company utilizes the lease term for which it is reasonably certain to use the underlying asset, including consideration of options to extend or terminate the lease. The Company also leases certain equipment with lease terms generally ranging from three to seven years . The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictions or covenants. Leases, or lease extensions, with a term of twelve months or less are not recorded on the condensed consolidated balance sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company accounts for lease and non-lease components as a single lease component for real estate leases, and for all other asset classes the Company accounts for the components separately. The Company determines the lease classification and begins to recognize lease and any related financing expenses upon the lease’s commencement, which for real estate leases is generally upon store opening or, to a lesser extent, when the Company takes possession or control of the asset. As most of the Company’s leases do not include an implicit interest rate, the Company determines the discount rate for each lease based upon the incremental borrowing rate (“IBR”) in order to calculate the present value of lease payments at the commencement date. The IBR is computed as the rate of interest that the Company would have to pay to (i) borrow on a collateralized basis (ii) over a similar term (iii) an amount equal to the total lease payments and (iv) in a similar economic environment. The Company utilizes its asset based credit facility as the basis for determining the applicable IBR for each lease. Certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels. Due to the variable and unpredictable nature of such payments, the Company does not recognize a lease right-of-use asset and lease liability related to such payments. Estimated variable rental payments are included in accounts payable and accrued expenses on the condensed consolidated balance sheets. The Company has a small group of leases that include rental payments periodically adjusted for inflation (e.g., based on the consumer price index). The Company includes these variable payments in the initial measurement of the lease right-of-use asset and lease liability if such increases have a minimum rent escalation (e.g., floor). However, the Company excludes these variable payments from the initial measurement of the lease right-of-use asset and lease liability in the case of lease arrangements that do not specify a minimum rent escalation. The Company rents or subleases certain real estate to third parties under operating leases and recognizes rental income received on a straight-line basis over the lease term, which is recorded as an offset to selling, general and administrative expenses on the condensed consolidated statements of income. Lease arrangements may require the landlord to provide tenant allowances directly to the Company. Standard tenant allowances received from landlords, typically those received under operating lease agreements, are recorded as cash and cash equivalents with an offset recorded in lease right-of-use assets on the condensed consolidated balance sheets. In certain instances tenant allowances are provided for the Company to design and build the leased asset. Tenant allowances received from landlords during the construction phase of a leased asset and prior to lease commencement are recorded as cash and cash equivalents with an offset recorded in other non-current assets (to the extent the Company has incurred related capital expenditure for construction costs) or in other current liabilities (to the extent that payments are received prior to capital construction expenditures by the Company) on the condensed consolidated balance sheets. After the leased asset is constructed and the lease commences, the Company reclassifies the tenant allowance from other non-current assets or other current liabilities to lease right-of-use assets on the condensed consolidated balance sheets. Lease Classification Certain of the Company’s real estate and property and equipment are held under finance leases. Lease related assets are included in finance lease right-of-use assets within property and equipment —net on the condensed consolidated balance sheets. Leases that do not meet the definition of a finance lease are considered operating leases. Lease related assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. Construction Related Activities The Company is sometimes involved in the construction of leased stores for certain of its newer Design Galleries. Prior to construction commencement, the Company evaluates whether or not it, as lessee, controls the asset being constructed and, depending on the extent to which it is involved, the Company may be the “deemed owner” of the leased asset for accounting purposes during the construction period. If the Company is not the “deemed owner” for accounting purposes during the construction period, such lease is classified as either an operating or finance lease upon lease commencement. During the construction period and prior to lease commencement, any capital amounts contributed by the Company toward the construction of the leased asset (excluding normal leasehold improvements, which are recorded within property and equipment—net) are recorded as “Landlord assets under construction” within other non-current assets on the condensed consolidated balance sheets (refer to Note 3— Prepaid Expense and Other Assets If the Company is the “deemed owner” for accounting purposes, upon commencement of the construction project, it is required to capitalize (i) costs incurred by the Company and (ii) the cash and non-cash assets contributed by the landlord for construction as property and equipment on its condensed consolidated balance sheets as build-to-suit assets, with an offsetting financing obligation under build-to-suit lease transactions. The contributions by the landlord toward construction, including the building, existing site improvements at construction commencement and any amounts paid by the landlord to those responsible for construction, are included as property and equipment additions due to build-to-suit lease transactions within the non-cash section of the consolidated statements of cash flows. Over the lease term, these non-cash additions to property and equipment do not impact the Company’s cash outflows, nor do they impact net income within the consolidated statements of income. Upon completion of the construction project, the Company performs a sale-leaseback analysis to determine if it can derecognize the build-to-suit asset and corresponding financing obligation. If the asset and liability cannot be derecognized, the Company accounts for the agreement as a debt-like arrangement. ​ Lease Disclosures Lease costs—net consist of the following ( in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ August 3, August 4, ​ August 3, August 4, ​ 2019 2018 ​ 2019 2018 Operating lease cost (1)(2) ​ $ 23,259 ​ $ 22,743 $ 42,376 ​ $ 44,089 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of leased assets (1) ​ ​ 9,235 ​ ​ 6,441 ​ ​ 18,087 ​ ​ 12,340 Interest on lease liabilities (3) ​ ​ 5,672 ​ ​ 3,319 ​ ​ 11,186 ​ ​ 6,411 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sublease income (4) ​ ​ (1,507) ​ ​ (2,261) ​ ​ (4,789) ​ ​ (3,271) Total lease costs—net ​ $ 36,659 ​ $ 30,242 ​ $ 66,860 ​ $ 59,569 (1) Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the condensed consolidated statements of income based on the Company’s policy. Refer to Note 3— Significant Accounting Policies in the 2018 Form 10-K. (2) Includes short-term leases and variable lease costs. (3) Included in interest expense—net on the condensed consolidated statements of income. (4) Included in selling, general and administrative expenses on the condensed consolidated statements of income. ​ Lease right-of-use assets and lease liabilities consist of the following ( in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ ​ ​ 2019 ​ 2019 ​ ​ Balance Sheet Classification ​ ​ ​ ​ ​ ​ Assets ​ ​ ​ ​ ​ ​ ​ ​ Operating leases ​ Operating lease right-of-use assets ​ $ 421,001 ​ $ 440,504 Finance leases (1)(2) ​ Property and equipment—net ​ ​ 650,699 ​ ​ 646,875 Total lease right-of-use assets ​ ​ ​ ​ 1,071,700 ​ ​ 1,087,379 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ ​ ​ Operating leases ​ Operating lease liabilities ​ $ 57,162 ​ $ 66,249 Finance leases ​ Other current liabilities ​ ​ 8,127 ​ ​ 9,184 Total lease liabilities—current ​ ​ ​ ​ 65,289 ​ ​ 75,433 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ ​ ​ ​ ​ ​ ​ Operating leases ​ Non-current operating lease liabilities ​ $ 415,803 ​ $ 437,557 Finance leases ​ Non-current finance lease liabilities ​ ​ 433,591 ​ ​ 421,245 Total lease liabilities—non-current ​ ​ ​ ​ 849,394 ​ ​ 858,802 Total lease liabilities ​ ​ ​ $ 914,683 ​ $ 934,235 (1) Finance lease right-of-use assets include capitalized amounts related to the Company’s construction activities to design and build leased assets, as well as rent payments made to landlords for which the respective Galleries are not yet opened. (2) Finance lease right-of-use assets are recorded net of accumulated amortization of $73.3 million and $55.5 million as of August 3, 2019 and February 2, 2019, respectively. ​ The maturities of lease liabilities are as follows as of August 3, 2019 ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal year Operating Finance Total Remainder of fiscal 2019 ​ $ 33,456 ​ $ 14,014 ​ $ 47,470 2020 ​ ​ 78,990 ​ ​ 33,456 ​ ​ 112,446 2021 ​ ​ 65,068 ​ ​ 33,908 ​ ​ 98,976 2022 ​ ​ 57,226 ​ ​ 34,385 ​ ​ 91,611 2023 ​ ​ 53,867 ​ ​ 35,153 ​ ​ 89,020 2024 ​ ​ 49,901 ​ ​ 35,689 ​ ​ 85,590 Thereafter ​ ​ 228,093 ​ ​ 548,302 ​ ​ 776,395 Total lease payments (1) ​ ​ 566,601 ​ ​ 734,907 ​ ​ 1,301,508 Less—imputed interest (2) ​ ​ (93,636) ​ ​ (293,189) ​ ​ (386,825) Present value of lease liabilities (3) ​ $ 472,965 ​ $ 441,718 ​ $ 914,683 (1) Total lease payments exclude $369.1 million of legally binding payments for leases signed but not yet commenced as of August 3, 2019. (2) Calculated using the incremental borrowing rate for each lease at lease commencement. (3) Excludes future commitments under short-term lease agreements of $1.4 million as of August 3, 2019. ​ Supplemental information related to leases consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ August 3, ​ ​ August 4, ​ 2019 ​ 2018 Weighted-average remaining lease term (years) ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 8.9 ​ ​ 9.6 Finance leases ​ ​ 18.9 ​ ​ 18.4 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 3.81% ​ ​ 3.74% Finance leases ​ ​ 5.26% ​ ​ 4.95% ​ Other information related to leases consists of the following ( in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ August 3, ​ ​ August 4, ​ 2019 ​ 2018 Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ (53,670) ​ $ (54,287) Operating cash flows from finance leases ​ ​ (11,186) ​ ​ (6,411) Financing cash flows from finance leases ​ ​ (4,399) ​ ​ (3,567) Total cash outflows from leases ​ $ (69,255) ​ $ (64,265) ​ ​ ​ ​ ​ ​ ​ Lease right-of-use assets obtained in exchange for lease obligations (non-cash) ​ ​ ​ ​ ​ ​ Finance leases ​ $ 17,997 ​ $ 27,874 Operating leases ​ ​ 13,839 ​ ​ 15,024 ​

Convertible Senior Notes

Convertible Senior Notes6 Months Ended
Aug. 03, 2019
Debt Disclosure [Abstract]
Convertible Senior NotesNOTE 8—CONVERTIBLE SENIOR NOTES 0.00% Convertible Senior Notes due 2023 In June 2018, the Company issued in a private offering $300 million principal amount of 0.00% convertible senior notes due 2023 and issued an additional $35 million principal amount in connection with the overallotment option granted to the initial purchasers as part of the offering (collectively, the “2023 Notes”). The 2023 Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as the Trustee. The 2023 Notes will mature on June 15, 2023, unless earlier purchased by the Company or converted. The 2023 Notes will not bear interest, except that the 2023 Notes will be subject to “special interest” in certain limited circumstances in the event of the failure of the Company to perform certain of its obligations under the indenture governing the 2023 Notes. The 2023 Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. Certain events are also considered “events of default” under the 2023 Notes, which may result in the acceleration of the maturity of the 2023 Notes, as described in the indenture governing the 2023 Notes. The initial conversion rate applicable to the 2023 Notes is 5.1640 shares of common stock per $1,000 principal amount of 2023 Notes, which is equivalent to an initial conversion price of approximately $193.65 per share. The conversion rate will be subject to adjustment upon the occurrence of certain specified events, but will not be adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a “make-whole fundamental change” as defined in the indenture, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its 2023 Notes in connection with such make-whole fundamental change. Prior to March 15, 2023, the 2023 Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2018, if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of the Company’s common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day; (2) during the five consecutive business day period after any ten consecutive trading day period in which, for each day of that period, the trading price per $1,000 principal amount of 2023 Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; or (3) upon the occurrence of specified corporate transactions. As of August 3, 2019, none of these conditions have occurred and, as a result, the 2023 Notes were not convertible as of August 3, 2019. On and after March 15, 2023 , until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2023 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the 2023 Notes will be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. If the Company has not delivered a notice of its election of settlement method prior to the final conversion period it will be deemed to have elected combination settlement with a dollar amount per note to be received upon conversion of $1,000. The Company may not redeem the 2023 Notes; however, upon the occurrence of a fundamental change (as defined in the indenture governing the notes), holders may require the Company to purchase all or a portion of their 2023 Notes for cash at a price equal to 100% of the principal amount of the 2023 Notes to be purchased plus any accrued and unpaid special interest to, but excluding, the fundamental change purchase date. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. Accordingly, in accounting for the issuance of the 2023 Notes, the Company separated the 2023 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, which is recognized as a debt discount, represents the difference between the proceeds from the issuance of the 2023 Notes and the fair value of the liability component of the 2023 Notes. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) will be amortized to interest expense using an effective interest rate of 6.35% over the expected life of the 2023 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the debt issuance costs related to the issuance of the 2023 Notes, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the expected life of the 2023 Notes, and debt issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity (deficit). Debt issuance costs related to the 2023 Notes were comprised of discounts upon original issuance of $1.7 million and third party offering costs of $4.6 million. Discounts and third party offering costs attributable to the liability component are recorded as a contra-liability and are presented net against the convertible senior notes due 2023 balance on the condensed consolidated balance sheets. During the three months ended August 3, 2019 and August 4, 2018, the Company recorded $0.3 million and $0.1 million, respectively, related to the amortization of debt issuance costs. During the six months ended August 3, 2019 and August 4, 2018, the Company recorded $0.5 million and $0.1 million related to the amortization of debt issuance costs, respectively. The carrying values of the 2023 Notes, excluding the discounts upon original issuance and third party offering costs, are as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Liability component ​ ​ Principal ​ $ 335,000 ​ $ 335,000 Less: Debt discount ​ (73,152) ​ (81,311) Net carrying amount ​ $ 261,848 ​ $ 253,689 Equity component (1) ​ $ 90,990 ​ $ 90,990 (1) Included in additional paid-in capital on the condensed consolidated balance sheets. The Company recorded interest expense of $4.1 million and $1.8 million for the amortization of the debt discount related to the 2023 Notes during the three months ended August 3, 2019 and August 4, 2018, respectively. The Company recorded interest expense of $8.2 million and $1.8 million for the amortization of the debt discount related to the 2023 Notes during the six months ended August 3, 2019 and August 4, 2018, respectively. 2023 Notes—Convertible Bond Hedge and Warrant Transactions In connection with the offering of the 2023 Notes and exercise of the overallotment option in June 2018, the Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 1.7 million shares of its common stock at a price of approximately $193.65 per share. The total cost of the convertible note hedge transactions was $91.9 million. In addition, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 1.7 million shares of the Company’s common stock at a price of $309.84 per share. The warrants contain certain adjustment mechanisms whereby the total number of shares to be purchased under such warrants may be increased up to a cap of 3.5 million shares of common stock (which cap may also be subject to adjustment). The Company received $51.0 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and sale of the warrants are intended to offset any actual earnings dilution from the conversion of the 2023 Notes until the Company’s common stock is above approximately $309.84 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the convertible note hedge and warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company recorded a deferred tax liability of $22.3 million in connection with the debt discount associated with the 2023 Notes and recorded a deferred tax asset of $22.5 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax asset are recorded in deferred tax assets on the condensed consolidated balance sheets. 0.00% Convertible Senior Notes due 2020 In June 2015, the Company issued in a private offering $250 million principal amount of 0.00% convertible senior notes due 2020 and, in July 2015, the Company issued an additional $50 million principal amount pursuant to the exercise of the overallotment option granted to the initial purchasers as part of its June 2015 offering (collectively, the “2020 Notes”). The 2020 Notes are governed by the terms of an indenture between the Company and U.S. Bank National Association, as the Trustee. The 2020 Notes will mature on July 15, 2020 , unless earlier purchased by the Company or converted. The 2020 Notes will not bear interest, except that the 2020 Notes will be subject to “special interest” in certain limited circumstances in the event of the failure of the Company to perform certain of its obligations under the indenture governing the 2020 Notes. The 2020 Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. Certain events are also considered “events of default” under the 2020 Notes, which may result in the acceleration of the maturity of the 2020 Notes, as described in the indenture governing the 2020 Notes. The 2020 Notes are guaranteed by the Company’s primary operating subsidiary, Restoration Hardware, Inc., as Guarantor. The guarantee is the unsecured obligation of the Guarantor and is subordinated to the Guarantor’s obligations from time to time with respect to its credit agreement and ranks equal in right of payment with respect to Guarantor’s other obligations. The initial conversion rate applicable to the 2020 Notes is 8.4656 shares of common stock per $1,000 principal amount of 2020 Notes, which is equivalent to an initial conversion price of approximately $118.13 per share. The conversion rate will be subject to adjustment upon the occurrence of certain specified events, but will not be adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a “make-whole fundamental change” as defined in the indenture, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its 2020 Notes in connection with such make-whole fundamental change. Prior to March 15, 2020, the 2020 Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2015, if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of the Company’s common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day; (2) during the five consecutive business day period after any ten consecutive trading day period in which, for each day of that period, the trading price per $1,000 principal amount of 2020 Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; or (3) upon the occurrence of specified corporate transactions. As of August 3, 2019, none of these conditions have occurred and, as a result, the 2020 Notes were not convertible as of August 3, 2019. On and after March 15, 2020, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2020 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the 2020 Notes will be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. If the Company has not delivered a notice of its election of settlement method prior to the final conversion period it will be deemed to have elected combination settlement with a dollar amount per note to be received upon conversion of $1,000. The Company may not redeem the 2020 Notes; however, upon the occurrence of a fundamental change (as defined in the indenture governing the notes), holders may require the Company to purchase all or a portion of their 2020 Notes for cash at a price equal to 100% of the principal amount of the 2020 Notes to be purchased plus any accrued and unpaid special interest to, but excluding, the fundamental change purchase date. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. Accordingly, in accounting for the issuance of the 2020 Notes, the Company separated the 2020 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, which is recognized as a debt discount, represents the difference between the proceeds from the issuance of the 2020 Notes and the fair value of the liability component of the 2020 Notes. The debt discount will be amortized to interest expense using an effective interest rate of 6.47% over the expected life of the 2020 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the debt issuance costs related to the issuance of the 2020 Notes, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component are amortized to interest expense using the effective interest method over the expected life of the 2020 Notes, and debt issuance costs attributable to the equity component are netted with the equity component in stockholders’ equity (deficit). Debt issuance costs related to the 2020 Notes were comprised of discounts upon original issuance of $3.8 million and third party offering costs of $2.3 million. Discounts and third party offering costs attributable to the liability component are recorded as a contra-liability and are presented net against the convertible senior notes due 2020 balance on the condensed consolidated balance sheets. During both the three months ended August 3, 2019 and August 4, 2018, the Company recorded $0.3 million related to the amortization of debt issuance costs. During the six months ended August 3, 2019 and August 4, 2018, the Company recorded $0.6 million and $0.5 million related to the amortization of debt issuance costs, respectively. The carrying values of the 2020 Notes, excluding the discounts upon original issuance and third party offering costs, are as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Liability component ​ ​ ​ ​ Principal ​ $ 300,000 ​ $ 300,000 Less: Debt discount ​ (18,132) ​ (27,081) Net carrying amount ​ $ 281,868 ​ $ 272,919 Equity component (1) ​ $ 84,003 ​ $ 84,003 (1) Included in additional paid-in capital on the condensed consolidated balance sheets. The Company recorded interest expense of $4.5 million and $4.2 million for the amortization of the debt discount related to the 2020 Notes during the three months ended August 3, 2019 and August 4, 2018, respectively. The Company recorded interest expense of $8.9 million and $8.4 million for the amortization of the debt discount related to the 2020 Notes during the six months ended August 3, 2019 and August 4, 2018, respectively. 2020 Notes—Convertible Bond Hedge and Warrant Transactions In connection with the offering of the 2020 Notes in June 2015 and the exercise in full of the overallotment option in July 2015, the Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 2.5 million shares of its common stock at a price of approximately $118.13 per share. The total cost of the convertible note hedge transactions was $68.3 million. In addition, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 2.5 million shares of the Company’s common stock at a price of $189.00 per share. The warrants contain certain adjustment mechanisms whereby the total number of shares to be purchased under such warrants may be increased up to a cap of 5.1 million shares of common stock (which cap may also be subject to adjustment). The Company received $30.4 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and sale of the warrants are intended to offset any actual earnings dilution from the conversion of the 2020 Notes until the Company’s common stock is above approximately $189.00 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the convertible note hedge and warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company recorded a deferred tax liability of $32.8 million in connection with the debt discount associated with the 2020 Notes and recorded a deferred tax asset of $26.6 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax asset are recorded in deferred tax assets on the condensed consolidated balance sheets. 0.00% Convertible Senior Notes due 2019 In June 2014, the Company issued $350 million principal amount of 0.00% convertible senior notes due 2019 (the “2019 Notes”) in a private offering. The 2019 Notes were governed by the terms of an indenture between the Company and U.S. Bank National Association, as the Trustee. The 2019 Notes did not bear interest, except that the 2019 Notes were subject to “special interest” in certain limited circumstances in the event of the failure of the Company to perform certain of its obligations under the indenture governing the 2019 Notes. The 2019 Notes were unsecured obligations and did not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. Certain events were also considered “events of default” under the 2019 Notes, which could result in the acceleration of the maturity of the 2019 Notes, as described in the indenture governing the 2019 Notes. The 2019 Notes matured on June 15, 2019 . The initial conversion rate applicable to the 2019 Notes was 8.6143 shares of common stock per $1,000 principal amount of 2019 Notes, which was equivalent to an initial conversion price of approximately $116.09 per share. The conversion rate was subject to adjustment upon the occurrence of certain specified events, but was not adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a “make-whole fundamental change,” the Company would, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elected to convert its 2019 Notes in connection with such make-whole fundamental change. Prior to March 15, 2019, the 2019 Notes were convertible only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2014, if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter, the last reported sale price of the Company’s common stock on such trading day is greater than or equal to 130% of the applicable conversion price on such trading day; (2) during the five consecutive business day period after any ten consecutive trading day period in which, for each day of that period, the trading price per $1,000 principal amount of 2019 Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; or (3) upon the occurrence of specified corporate transactions. On and after March 15, 2019, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders could have converted all or a portion of their 2019 Notes at any time, regardless of the foregoing circumstances. Under GAAP, certain convertible debt instruments that may be settled in cash on conversion are required to be separately accounted for as liability and equity components of the instrument in a manner that reflects the issuer’s non-convertible debt borrowing rate. Accordingly, in accounting for the issuance of the 2019 Notes, the Company separated the 2019 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, which is recognized as a debt discount, represents the difference between the proceeds from the issuance of the 2019 Notes and the fair value of the liability component of the 2019 Notes. The debt discount was amortized to interest expense using an effective interest rate of 4.51% over the expected life of the 2019 Notes. The equity component was not remeasured as long as it continued to meet the conditions for equity classification. In accounting for the debt issuance costs related to the issuance of the 2019 Notes, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Debt issuance costs attributable to the liability component were amortized to interest expense using the effective interest method over the expected life of the 2019 Notes, and debt issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity (deficit). Debt issuance costs related to the 2019 Notes were comprised of discounts and commissions payable to the initial purchasers of $4.4 million and third party offering costs of $1.0 million. Discounts, commissions payable to the initial purchasers and third party offering costs attributable to the liability component were recorded as a contra-liability and were presented net against the convertible senior notes due 2019 balance on the condensed consolidated balance sheets. During the three months ended August 3, 2019 and August 4, 2018, the Company recorded $0.2 million and $0.3 million, respectively, related to the amortization of debt issuance costs. During the six months ended August 3, 2019 and August 4, 2018, the Company recorded $0.4 million and $0.5 million, respectively, related to the amortization of debt issuance costs. In June 2019, upon the maturity of the 2019 Notes, $350.0 million in aggregate principal amount of the 2019 Notes were settled for $349.0 million in cash and 42 shares of common stock. As a result, the Company recognized a gain on extinguishment of debt of $1.0 million. As of August 3, 2019, the 2019 Notes are no longer outstanding. As of February 2, 2019, the carrying value of the 2019 Notes, excluding the discounts and commissions payable to the initial purchasers and third party offering costs, was as follows ( in thousands ​ ​ ​ ​ ​ February 2, ​ ​ 2019 Liability component ​ Principal ​ $ 350,000 Less: Debt discount ​ (5,854) Net carrying amount ​ $ 344,146 Equity component (1) ​ $ 70,482 (1) Included in additional paid-in capital on the condensed consolidated balance sheets. The Company recorded interest expense of $2.0 million and $3.8 million for the amortization of the debt discount related to the 2019 Notes during the three months ended August 3, 2019 and August 4, 2018, respectively. The Company recorded interest expense of $5.9 million and $7.5 million for the amortization of the debt discount related to the 2019 Notes during the six months ended August 3, 2019 and August 4, 2018, respectively. 2019 Notes—Convertible Bond Hedge and Warrant Transactions In connection with the offering of the 2019 Notes, the Company entered into convertible note hedge transactions whereby the Company had the option to purchase a total of approximately 3.0 million shares of its common stock at a price of approximately $116.09 per share. The total cost of the convertible note hedge transactions was $73.3 million. The convertible note hedge terminated upon the maturity date of the 2019 Notes. In addition, the Company sold warrants whereby the holders of the warrants have the option to purchase a total of approximately 3.0 million shares of the Company’s common stock at a price of $171.98 per share. The warrants contain certain adjustment mechanisms whereby the total number of shares to be purchased under such warrants may be increased up to a cap of 6.0 million shares of common stock (which cap may also be subject to adjustment). The warrants will expire through December 2019. The Company received $40.4 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and sale of the warrants are intended to offset any actual dilution from the conversion of the 2019 Notes and to effectively increase the overall conversion price from $116.09 per share to $171.98 per share. As these transactions met certain accounting criteria, the convertible note hedges were, and warrants are, recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the convertible note hedge and warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company recorded a deferred tax liability of $27.5 million in connection with the debt discount associated with the 2019 Notes and recorded a deferred tax asset of $28.6 million in connection with the convertible note hedge transactions. The deferred tax liability and deferred tax assets were included in deferred tax assets on the condensed consolidated balance sheets. There is no deferred tax asset or liability remaining as of August 3, 2019 due to the maturity of the 2019 Notes.

Credit Facilities

Credit Facilities6 Months Ended
Aug. 03, 2019
Debt Disclosure [Abstract]
Credit FacilitiesNOTE 9—CREDIT FACILITIES The outstanding balances under the Company’s credit facilities were as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ 2019 ​ 2019 ​ ​ Outstanding ​ Unamortized Debt ​ Net Carrying ​ Outstanding ​ Unamortized Debt ​ Net Carrying ​ Amount Issuance Costs Amount Amount Issuance Costs Amount Asset based credit facility ​ $ 145,000 ​ $ — ​ $ 145,000 ​ $ 57,500 ​ $ — ​ $ 57,500 FILO term loan ​ 120,000 ​ (914) ​ 119,086 ​ — ​ — ​ — Second lien term loan ​ ​ 200,000 ​ ​ (2,738) ​ ​ 197,262 ​ ​ — ​ — ​ — Equipment promissory notes (1) ​ 64,007 ​ (380) ​ 63,627 ​ — ​ — ​ — Total credit facilities ​ $ 529,007 ​ $ (4,032) ​ $ 524,975 ​ $ 57,500 ​ $ — ​ $ 57,500 (1) Represents total equipment security notes secured by certain of the Company’s property and equipment, of which $21.5 million outstanding was included in other current liabilities and $42.5 million outstanding was included in other non-current obligations on the condensed consolidated balance sheets. Asset Based Credit Facility & FILO Term Loan In August 2011, Restoration Hardware, Inc., along with its Canadian subsidiary, Restoration Hardware Canada, Inc., entered into a credit agreement with Bank of America, N.A., as administrative agent, and certain other lenders. On June 28, 2017, Restoration Hardware, Inc. entered into an eleventh amended and restated credit agreement (the “Credit Agreement”) among Restoration Hardware, Inc., Restoration Hardware Canada, Inc., various subsidiaries of RH named therein as borrowers or guarantors, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent (the “First Lien Administrative Agent”). The Credit Agreement has a revolving line of credit with initial availability of up to $600.0 million, of which $10.0 million is available to Restoration Hardware Canada, Inc., and includes a $200.0 million accordion feature under which the revolving line of credit may be expanded by agreement of the parties from $600.0 million to up to $800.0 million if and to the extent the lenders, whether existing lenders or new lenders, agree to increase their credit commitments. In addition, the Credit Agreement established an $80.0 million last in, last out (“LILO”) term loan facility, which was repaid in full in June 2018. The Credit Agreement has a maturity date of June 28, 2022. On April 4, 2019, Restoration Hardware, Inc., entered into a third amendment to the Credit Agreement (the “Third Amendment”). The Third Amendment, among other things, (a) established a $120.0 million first in, last out (“FILO”) term loan facility, which amount was fully borrowed as of April 4, 2019 and which incurs interest at a rate that is 1.25% greater than the interest rate applicable to the revolving loans provided for under the Credit Agreement at any time, (b) provided for additional permitted indebtedness, as defined in the Credit Agreement, that the loan parties can incur, and (c) modified the borrowing availability under the Credit Agreement in certain circumstances. The FILO term loan facility has a maturity date of June 28, 2022. In addition, under the Credit Agreement, the Company is required to meet specified financial ratios in order to undertake certain actions, and the Company may be required to maintain certain levels of excess availability or meet a specified consolidated fixed-charge coverage ratio (“FCCR”). Subject to certain exceptions, the trigger for the FCCR occurs if the domestic availability under the revolving line of credit is less than the greater of (i) $40.0 million and (ii) 10% of the sum of (a) the lesser of (x) the aggregate revolving commitments under the Credit Agreement and (y) the aggregate revolving borrowing base, plus (b) the lesser of (x) the then outstanding amount of the LILO term loan or (y) the LILO term loan borrowing base. If the availability under the Credit Agreement is less than the foregoing amount, then Restoration Hardware, Inc. is required subject to certain exceptions to maintain an FCCR of at least one to one. On May 31, 2019, Restoration Hardware, Inc. entered into a fourth amendment to the Credit Agreement (the “Fourth Amendment”). The Fourth Amendment, among other things, amends the Credit Agreement to (a) extend the time to deliver monthly financial statements to the lenders for the fiscal months ending February 2019 and March 2019 until June 19, 2019; (b) remove the requirement to deliver monthly financial statements to the lenders for the last fiscal month of any fiscal quarter; and (c) waive any default or event of default under the Credit Agreement relating to the delivery of monthly financial statements or other information to lenders for the fiscal months ending February 2019 and March 2019. As of August 3, 2019, the Company had $145.0 million in outstanding borrowings under the revolving line of credit. The Credit Agreement provides for a borrowing amount based on the value of eligible collateral and a formula linked to certain borrowing percentages based on certain categories of collateral. Under the terms of such provisions, the amount under the revolving line of credit borrowing base that could be available pursuant to the Credit Agreement as of August 3, 2019 was $254.6 million, net of $12.8 million in outstanding letters of credit. The Credit Agreement contains various restrictive and affirmative covenants, including, among others, required financial reporting, limitations on the ability to incur liens, make loans or other investments, incur additional debt, issue additional equity, merge or consolidate with or into another person, sell assets, pay dividends or make other distributions, or enter into transactions with affiliates, along with other restrictions and limitations typical to credit agreements of this type and size. As of August 3, 2019, Restoration Hardware, Inc. was in compliance with all applicable covenants of the Credit Agreement. Second Lien Credit Agreement On April 10, 2019, Restoration Hardware, Inc., entered into a credit agreement, dated as of April 9, 2019 and effective as of April 10, 2019 (the “Second Lien Credit Agreement”), among (i) Restoration Hardware, Inc., as lead borrower, (ii) the guarantors party thereto, (iii) the lenders party thereto, each of whom are funds and accounts managed or advised by either Benefit Street Partners L.L.C. and its affiliated investment managers or Apollo Capital Management, L.P. and its affiliated investment managers, as applicable, and (iv) BSP Agency, LLC, as administrative agent and collateral agent (the “Second Lien Administrative Agent”) with respect to a second lien term loan in an aggregate principal amount equal to $200.0 million with a maturity date of April 9, 2024 (the “Second Lien Term Loan”). The Second Lien Term Loan bears interest at an annual rate generally based on the London Inter-bank Offered Rate (“LIBOR”) plus 6.50%. This rate is a floating rate that resets periodically based upon changes in LIBOR rates during the life of the Second Lien Term Loan. At the date of the initial borrowing, the rate was set at one-month LIBOR plus 6.50%. All obligations under the Second Lien Term Loan are secured by a second lien security interest in substantially all of the assets of the loan parties, including inventory, receivables and certain types of intellectual property. The second lien security interest encumbers substantially the same collateral that secures the Credit Agreement. The second lien ranks junior in priority and is subordinated to the first lien in favor of the lenders with respect to the Credit Agreement. The borrowings under the Second Lien Credit Agreement may be prepaid in whole or in part at any time, subject to certain minimum payment requirements, and including (i) a prepayment premium in the amount of 2.0% of the principal amount of the Second Lien Term Loan being prepaid during the first year after the effective date of the Second Lien Credit Agreement, (ii) 1.0% of the principal amount of the Second Lien Term Loan being prepaid during the second year after the effective date of the Second Lien Credit Agreement, and (iii) no prepayment premium after the second anniversary of the effective date of the Second Lien Credit Agreement. The Second Lien Credit Agreement contains a financial ratio covenant not found in the Credit Agreement based upon a net senior secured leverage ratio of consolidated secured debt to consolidated EBITDA, as defined in The Credit Agreement, as follows: ● The net senior secured leverage ratio test is based on the ratio of (i) the sum of (a) all obligations outstanding under the Second Lien Term Loan and the Credit Agreement plus (b) all other secured indebtedness of RH and certain of its subsidiaries that is (x) senior or pari passu to the lien on the Second Lien Term Loan collateral or (y) secured by property that does not constitute Second Lien Term Loan collateral under the Second Lien Term Loan, less (c) all unrestricted cash and cash equivalents of RH and certain of its subsidiaries subject to a blocked account control agreement, to (ii) consolidated EBITDA of RH and certain of its subsidiaries (the “Net Senior Secured Leverage Ratio”). ● The Net Senior Secured Leverage Ratio may not exceed 3.50 to 1.00 as of the last day of any fiscal quarter. The Second Lien Credit Agreement also contains a consolidated fixed charge coverage ratio generally based on the same formulation set forth in the Credit Agreement such that the borrower may not make certain “restricted payments” in the event that the ratio of (i) consolidated EBITDA minus certain costs to the amount of (ii) debt service costs plus certain other costs is not less than 1.00 to 1.00 and the level of unused availability under the Credit Agreement meets certain levels. The Second Lien Credit Agreement also contains certain events of default and other customary terms and conditions typical to a second lien credit agreement. On May 31, 2019, Restoration Hardware, Inc. entered into a first amendment to the Second Lien Credit Agreement (the “First Amendment”). The First Amendment, among other things, amends the Second Lien Credit Agreement to (a) remove the requirement to deliver monthly financial statements to the lenders for the last fiscal month of any fiscal quarter and (b) waive any default or event of default under the Second Lien Credit Agreement relating to the delivery of monthly financial statements or other information to lenders for the fiscal months ending February 2019 and March 2019. As of August 3, 2019, the Company had $200.0 million in outstanding borrowings and no availability under the Second Lien Credit Agreement. The Second Lien Credit Agreement contains various restrictive and affirmative covenants generally in line with the covenants and restrictions contained in the Credit Agreement, including required financial reporting, limitations on the ability to incur liens, make loans or other investments, incur additional debt, issue additional equity, merge or consolidate with or into another person, sell assets, pay dividends or make other distributions, or enter into transactions with affiliates, along with other restrictions and limitations typical to credit agreements of a similar type and size. As of August 3, 2019, Restoration Hardware, Inc. was in compliance with all applicable covenants of the Second Lien Credit Agreement. Intercreditor Agreement On April 10, 2019, in connection with the Second Lien Credit Agreement, Restoration Hardware, Inc. entered into an Intercreditor Agreement (the “Intercreditor Agreement”), dated as of April 9, 2019 and effective as of April 10, 2019, with the First Lien Administrative Agent and the Second Lien Administrative Agent. The Intercreditor Agreement establishes various customary inter-lender terms, including, without limitation, with respect to priority of liens, permitted actions by each party, application of proceeds, exercise of remedies in case of default, releases of liens and certain limitations on the amendment of the Credit Agreement and the Second Lien Credit Agreement without the consent of the other party. Equipment Loan Facility On September 5, 2017, Restoration Hardware, Inc. entered into a Master Loan and Security Agreement with Banc of America Leasing & Capital, LLC (“BAL”) pursuant to which BAL and the Company agreed that BAL would finance certain equipment of the Company from time to time, with each such equipment financing to be evidenced by an equipment security note setting forth the terms for each particular equipment loan. Each equipment loan is secured by a purchase money security interest in the financed equipment. As of August 3, 2019, the Company had $64.0 million in aggregate amounts outstanding under the equipment security notes. The maturity dates of the equipment security notes vary, but generally have a maturity of three or four years. The Company is required to make monthly installment payments under the equipment security notes.

Fair Value Measurements

Fair Value Measurements6 Months Ended
Aug. 03, 2019
Fair Value Disclosures [Abstract]
Fair Value MeasurementsNOTE 10—FAIR VALUE MEASUREMENTS Certain financial assets and liabilities are required to be carried at fair value. Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining the fair value, the Company utilizes market data or assumptions that it believes market participants would use in pricing the asset or liability, which would maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, including assumptions about risk and the risks inherent in the inputs of the valuation technique. The degree of judgment used in measuring the fair value of financial instruments generally correlates to the level of pricing observability. Pricing observability is impacted by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established and the characteristics specific to the transaction. Financial instruments with readily available active quoted prices for which fair value can be measured generally will have a higher degree of pricing observability and a lesser degree of judgment used in measuring fair value. Conversely, financial instruments rarely traded or not quoted will generally have less, or no, pricing observability and a higher degree of judgment used in measuring fair value. The Company’s financial assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: ● Level 1—Quoted prices are available in active markets for identical investments as of the reporting date. ● Level 2—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. ● Level 3—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs used in the determination of fair value require significant management judgment or estimation. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair Value Measurements Recurring Amounts reported as cash and equivalents, receivables, and accounts payable and accrued expenses approximate fair value due to the short-term nature of activity within these accounts. The estimated fair value and carrying value of the 2019 Notes, 2020 Notes and 2023 Notes were as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ 2019 ​ 2019 ​ Fair Carrying Fair Carrying ​ ​ Value ​ Value (1) ​ Value ​ Value (1) Convertible senior notes due 2019 (2) ​ $ — ​ $ — ​ $ 334,756 ​ $ 344,146 Convertible senior notes due 2020 ​ ​ 282,338 ​ ​ 281,868 ​ 260,258 ​ 272,919 Convertible senior notes due 2023 ​ 263,595 ​ 261,848 ​ 230,684 ​ 253,689 (1) Carrying value represents the principal amount less the equity component of the 2019 Notes, 2020 Notes and 2023 Notes classified in stockholders’ equity (deficit), and does not exclude the discounts upon original issuance, discounts and commissions payable to the initial purchasers and third party offering costs, as applicable. (2) The 2019 Notes matured on June 15, 2019. The fair value of each of the 2019 Notes, 2020 Notes and 2023 Notes was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including the trading price of the Company’s convertible notes, when available, the Company’s stock price and interest rates based on similar debt issued by parties with credit ratings similar to the Company (Level 2). Fair Value Measurements Non-Recurring The fair value of the Waterworks reporting unit as of February 2, 2019 was determined based on unobservable (Level 3) inputs and valuation techniques, as discussed in “Impairment” within Note 3— Significant Accounting Policies

Income Taxes

Income Taxes6 Months Ended
Aug. 03, 2019
Income Tax Disclosure [Abstract]
Income TaxesNOTE 11—INCOME TAXES The Company recorded income tax expense of $16.7 million and $2.5 million in the three months ended August 3, 2019 and August 4, 2018, respectively. The Company recorded income tax expense of $28.5 million and $10.1 million in the six months ended August 3, 2019 and August 4, 2018, respectively. The effective tax rate was 20.7% and 3.9% for the three months ended August 3, 2019 and August 4, 2018, respectively. The effective tax rate was 22.2% and 10.3% for the six months ended August 3, 2019 and August 4, 2018, respectively. The increase in the effective tax rate is primarily due to lower discrete tax benefits related to net excess tax windfalls from stock-based compensation in both the three and six months ended August 3, 2019 as compared to the three and six months ended August 4, 2018. As of August 3, 2019, the Company had $8.6 million of unrecognized tax benefits, of which $7.4 million would reduce income tax expense and the effective tax rate, if recognized. As of February 2, 2019, the Company had $8.5 million of unrecognized tax benefits, of which $7.3 million would reduce income tax expense and the effective tax rate, if recognized. The remaining unrecognized tax benefits would offset other deferred tax assets, if recognized. As of August 3, 2019, the Company had $0.4 million of exposures related to unrecognized tax benefits that are expected to decrease in the next 12 months . ​

Net Income Per Share

Net Income Per Share6 Months Ended
Aug. 03, 2019
Earnings Per Share [Abstract]
Net Income Per ShareNOTE 12—NET INCOME PER SHARE The weighted-average shares used for net income per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ ​ 2019 2018 2019 2018 Weighted-average shares—basic ​ ​ 18,465,876 ​ 21,925,702 ​ 19,221,367 ​ 21,735,364 Effect of dilutive stock-based awards ​ 3,858,236 5,158,591 4,165,391 4,421,897 Effect of dilutive convertible senior notes (1) ​ — 412,268 242,292 206,134 Weighted-average shares—diluted ​ 22,324,112 27,496,561 23,629,050 26,363,395 (1) The 2019 Notes, 2020 Notes and 2023 Notes have an impact on the Company’s dilutive share count beginning at stock prices of $116.09 per share, $118.13 per share and $193.65 per share, respectively . The 2019 Notes matured on June 15, 2019 and did not have an impact of the Company’s dilutive share count post-maturity. The following number of options and restricted stock units were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ 2019 2018 2019 2018 Options 717,627 ​ 209,441 ​ 590,567 ​ 347,978 Restricted stock units — — — 5,250 Total anti-dilutive stock-based awards 717,627 209,441 590,567 353,228 ​

Share Repurchases

Share Repurchases6 Months Ended
Aug. 03, 2019
Equity [Abstract]
Share RepurchasesNOTE 13—SHARE REPURCHASES Share Repurchase Program On October 10, 2018, the Company’s Board of Directors authorized a share repurchase program of up to $700.0 million, of which $250.0 million in share repurchases were completed in fiscal 2018. The $700.0 million authorization amount was replenished by the Board of Directors on March 25, 2019. The Company repurchased approximately 2.2 million shares of its common stock at an average price of $115.36 per share, for an aggregate repurchase amount of approximately $250.0 million, during the first quarter of fiscal 2019 under this share repurchase program. The Company did not make any repurchases under this program during the three months ended August 3, 2019. As of August 3, 2019, there was $450.0 million remaining for future share repurchases under this program. Share Repurchases Under Equity Plans As of August 3, 2019 and February 2, 2019, the aggregate unpaid principal amount of the notes payable for share repurchases was $18.7 million and $19.6 million, respectively, of which, as of August 3, 2019, $18.7 million were included in other non-current obligations on the condensed consolidated balance sheets and, as of February 2, 2019, $0.9 million were included in other current liabilities and $18.7 million were included in other non-current obligations on the condensed consolidated balance sheets. During both the three months ended August 3, 2019 and August 4, 2018, the Company recorded interest expense on the outstanding notes of $0.3 million. During both the six months ended August 3, 2019 and August 4, 2018, the Company recorded interest expense on the outstanding notes of $0.5 million. Of the $18.7 million and $19.6 million notes payable for share repurchases outstanding as of August 3, 2019 and February 2, 2019, respectively, $15.5 million was due to a current board member of the Company.

Stock-Based Compensation

Stock-Based Compensation6 Months Ended
Aug. 03, 2019
Stock-Based Compensation.
Stock-Based CompensationNOTE 14—STOCK-BASED COMPENSATION The Company estimates the value of equity grants based upon an option-pricing model (“OPM”) and recognizes this estimated value as compensation expense over the vesting periods. The Company recognizes expense associated with performance-based awards when it becomes probable that the performance condition will be met. Once it becomes probable that an award will vest, the Company recognizes compensation expense equal to the number of shares which are probable to vest multiplied by the fair value of the related shares measured at the grant date. Stock-based compensation expense is included in selling, general and administrative expenses on the condensed consolidated statements of income. The Company recorded stock-based compensation expense of $5.3 million and $6.1 million during the three months ended August 3, 2019 and August 4, 2018, respectively. The Company recorded stock-based compensation expense of $11.0 million and $14.1 million during the six months ended August 3, 2019 and August 4, 2018, respectively. No stock-based compensation cost has been capitalized in the accompanying condensed consolidated financial statements. 2012 Stock Incentive Plan and 2012 Stock Option Plan As of August 3, 2019, 7,611,816 options were outstanding with a weighted-average exercise price of $56.68 per share and 6,178,614 options were vested with a weighted-average exercise price of $52.15 per share. The aggregate intrinsic value of options outstanding, options vested or expected to vest, and options exercisable as of August 3, 2019 was $610.8 million, $587.6 million, and $521.8 million, respectively. Stock options exercisable as of August 3, 2019 had a weighted-average remaining contractual life of 4.67 years. As of August 3, 2019, the total unrecognized compensation expense related to unvested options was $38.3 million, which is expected to be recognized on a straight-line basis over a weighted-average period of 3.53 years. As of August 3, 2019, the Company had 232,774 restricted stock units outstanding with a weighted-average grant date fair value of $49.53 per share. During the three months ended August 3, 2019, 139,754 restricted stock units vested with a weighted-average grant date and vest date fair value of $60.99 per share. During the six months ended August 3, 2019, 164,889 restricted stock units vested with a weighted-average grant date and vest date fair value of $59.84 per share. As of August 3, 2019, there was $7.8 million of total unrecognized compensation expense related to unvested restricted stock and restricted stock units which is expected to be recognized over a weighted-average period of 2.00 years. Rollover Units In connection with the acquisition of Waterworks in May 2016, $1.5 million rollover units in the Waterworks subsidiary (the “Rollover Units”) were recorded as part of the transaction. The Rollover Units are subject to the terms of the Waterworks LLC agreement, including redemption rights at an amount equal to the greater of (i) the $1.5 million remitted as consideration in the business combination or (ii) an amount based on the percentage interest represented in the overall valuation of the Waterworks subsidiary (the “Appreciation Rights”). The Appreciation Rights are measured at fair value and are subject to fair value measurements during the expected life of the Rollover Units, with changes to fair value recorded in the condensed consolidated statements of income. The fair value of the Appreciation Rights is determined based on an OPM. The Company did not record any expense related to the Appreciation Rights during both the three and six months ended August 3, 2019 and August 4, 2018. As of both August 3, 2019 and February 2, 2019, the liability associated with the Rollover Units and related Appreciation Rights was $1.5 million, which is included in other non-current obligations on the condensed consolidated balance sheets. Profit Interests In connection with the acquisition of Waterworks in May 2016, profit interests units in the Waterworks subsidiary (the “Profit Interests”) were issued to certain Waterworks associates. The Profit Interests are measured at their grant date fair value and expensed on a straight-line basis over their expected life, or five years. The Profit Interests are subject to fair value measurements during their expected life, with changes to fair value recorded in the condensed consolidated statements of income. The fair value of the Profit Interests is determined based on an OPM. For both the three months ended August 3, 2019 and August 4, 2018, the Company recorded $0.1 million related to the Profit Interests, which is included in selling, general and administrative expenses on the condensed consolidated statements of income. For both the six months ended August 3, 2019 and August 4, 2018, the Company recorded $0.2 million related to the Profit Interests. As of August 3, 2019 and February 2, 2019, the liability associated with the Profit Interests was $1.4 million and $1.1 million, respectively, which is included in other non-current obligations on the condensed consolidated balance sheets. ​

Commitments and Contingencies

Commitments and Contingencies6 Months Ended
Aug. 03, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and ContingenciesNOTE 15—COMMITMENTS AND CONTINGENCIES Commitments The Company had no material off balance sheet commitments as of August 3, 2019. Contingencies The Company is involved in lawsuits, claims and proceedings incident to the ordinary course of its business. These disputes are increasing in number as the business expands and the Company grows larger. Litigation is inherently unpredictable. As a result, the outcome of matters in which the Company is involved could result in unexpected expenses and liability that could adversely affect the Company’s operations. In addition, any claims against the Company, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time and result in the diversion of significant operational resources. The Company reviews the need for any loss contingency reserves and establishes reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. Generally, in view of the inherent difficulty of predicting the outcome of those matters, particularly in cases in which claimants seek substantial or indeterminate damages, it is not possible to determine whether a liability has been incurred or to reasonably estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case no reserve is established until that time. When and to the extent that the Company does establish a reserve, there can be no assurance that any such recorded liability for estimated losses will be for the appropriate amount, and actual losses could be higher or lower than what the Company accrues from time to time. The Company believes that the ultimate resolution of its current matters will not have a material adverse effect on its condensed consolidated financial statements. Securities Class Action On February 2, 2017, City of Miami General Employees’ & Sanitation Employees’ Retirement Trust filed a class action complaint in the United States District Court, Northern District of California, against the Company, Gary Friedman, and Karen Boone. On March 16, 2017, Peter J. Errichiello, Jr. filed a similar class action complaint in the same forum and against the same parties. On April 26, 2017, the court consolidated the two actions. The consolidated action is captioned In re RH, Inc. Securities Litigation. An amended consolidated complaint was filed in June 2017 asserting claims under sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The complaint asserts claims purportedly on behalf of a class of purchasers of Company common stock from March 26, 2015 to June 8, 2016. The alleged misstatements relate to statements regarding the roll out of the RH Modern product line and the Company’s inventory levels. The complaint seeks class certification, monetary damages, and other appropriate relief, including an award of costs and attorneys’ fees. On March 21, 2019, the Company and the individual defendants in the case entered into a binding memorandum of understanding to settle the case. The settlement amount is $50 million, which amount is to our understanding covered in full by the Company's insurance policies. On May 6, 2019, the plaintiffs filed a motion for preliminary approval of the proposed settlement together with a settlement agreement executed by both parties. The settlement agreement is subject to customary conditions including court approval following notice to the Company's shareholders, and a hearing at which time the court will consider the fairness, reasonableness and adequacy of the settlement. On June 21, 2019, the court issued an order preliminarily approving the settlement. A hearing on the settlement is scheduled for October 22, 2019. If a settlement is finally approved by the court, it will resolve all of the claims that were or could have been brought in the action. As a result of signing the settlement agreement and the potential liability becoming probable and estimable, the Company has recorded a provision for legal settlement and unpaid legal fees for $50.2 million within other current liabilities on the condensed consolidated balance sheets as of August 3, 2019. Additionally, the Company has recorded a litigation insurance recovery receivable of $50.2 million as of August 3, 2019 within prepaid expense and other current assets on the condensed consolidated balance sheets, which represents the estimated insurance claims proceeds from the Company’s insurance carriers. Shareholder Derivative Lawsuit On April 24, 2018, purported Company shareholder David Magnani filed a purported shareholder derivative suit in the United States District Court, Northern District of California, captioned Magnani v. Friedman et al. (No. 18-cv-02452). On June 29, 2018, Hosrof Izmirliyan filed a similar purported shareholder derivative complaint in the same forum, captioned Izmirliyan v. Friedman et al. (No. 18-cv-03930). On July 29, 2018, the court consolidated both derivative actions, and the consolidated action is captioned In re RH Shareholder Derivative Litigation. On August 24, 2018, plaintiffs filed an amended complaint that names RH as a nominal defendant and Gary Friedman, Karen Boone, Carlos Alberini, Keith Belling, Eri Chaya, Mark Demilio, Katie Mitic, Ali Rowghani and Leonard Schlesinger as defendants. The allegations substantially track those in the securities class action described above. Plaintiffs bring claims against all individual defendants under Section 14(a) of the Exchange Act, as well as claims for breach of fiduciary duty, unjust enrichment, and waste of corporate assets. The plaintiffs also allege insider trading and misappropriation of information claims against two of the individual defendants. The amended complaint seeks monetary damages, corporate governance changes, restitution, and an award of costs and attorneys’ fees. The Company believes that plaintiffs lack standing to bring this derivative action. On September 28, 2018, the Company filed a motion to stay proceedings and a motion to dismiss the consolidated complaint. On January 23, 2019, the court granted the motion to stay the case. ​

Segment Reporting

Segment Reporting6 Months Ended
Aug. 03, 2019
Segment Reporting [Abstract]
Segment ReportingNOTE 16—SEGMENT REPORTING The Company defines reportable and operating segments on the same basis that it uses to evaluate performance internally by the Chief Operating Decision Maker (the “CODM”). The Company has determined that the Chief Executive Officer is its CODM. As of August 3, 2019, the Company had two operating segments: RH Segment and Waterworks. The two operating segments include all sales channels accessed by the Company’s customers, including sales through catalogs, sales through the Company’s websites, sales through stores, and sales through the commercial channel. The Company’s two operating segments are strategic business units that offer products for the home furnishings customer. While RH Segment and Waterworks have a shared management team and customer base, the Company has determined that their results cannot be aggregated as they do not share similar economic characteristics, as well as due to other quantitative factors. The Company uses operating income to evaluate segment profitability. Operating income is defined as net income before interest expense—net, (gain) loss on extinguishment of debt and income tax expense. Segment Information The following tables presents the statements of income metrics reviewed by the CODM to evaluate performance internally or as required under ASC 280— Segment Reporting in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ August 3, ​ August 4, ​ ​ 2019 ​ 2018 ​ RH Segment Waterworks Total RH Segment Waterworks Total Net revenues ​ $ 672,328 ​ $ 34,186 ​ $ 706,514 ​ $ 607,604 ​ $ 33,194 ​ $ 640,798 Gross profit ​ 280,469 ​ 14,489 ​ 294,958 ​ 255,505 ​ 12,839 ​ 268,344 Depreciation and amortization ​ 24,170 ​ 1,151 ​ 25,321 ​ 20,236 ​ 1,118 ​ 21,354 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ August 3, ​ August 4, ​ ​ 2019 ​ 2018 ​ RH Segment Waterworks Total RH Segment Waterworks Total Net revenues ​ $ 1,236,034 ​ $ 68,901 ​ $ 1,304,935 ​ $ 1,133,611 ​ $ 64,593 ​ $ 1,198,204 Gross profit ​ 498,412 ​ 29,360 ​ 527,772 ​ 451,211 ​ 26,466 ​ 477,677 Depreciation and amortization ​ 50,174 ​ 2,336 ​ 52,510 ​ 39,709 ​ 2,230 ​ 41,939 ​ The following table presents the balance sheet metrics as required under ASC 280— Segment Reporting in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ 2019 ​ 2019 ​ RH Segment Waterworks Total RH Segment Waterworks Total Goodwill (1) ​ $ 124,370 ​ $ — ​ $ 124,370 ​ $ 124,379 ​ $ — ​ $ 124,379 Tradenames, trademarks and domain names (2) ​ 48,563 ​ 37,459 ​ 86,022 ​ 48,563 ​ 37,459 ​ 86,022 Total assets ​ 2,240,904 ​ 146,904 ​ 2,387,808 ​ 2,273,951 ​ 149,067 ​ 2,423,018 (1) The Waterworks reporting unit goodwill of $51.1 million recognized upon acquisition in fiscal 2016 was fully impaired as of February 2, 2019, with $17.4 million and $33.7 million impairment recorded in fiscal 2018 and fiscal 2017, respectively. (2) The Waterworks reporting unit tradename is presented net of an impairment charge of $14.6 million recorded in fiscal 2018. The Company uses segment operating income to evaluate segment performance and allocate resources. Segment operating income excludes (i) asset impairments and change in useful lives, (ii) product recall accruals and adjustments, (iii) legal settlements, net of legal expenses, (iv) severance costs associated with reorganizations, including the closures of distribution centers and the Dallas customer call center as part of the Company’s supply chain reorganization, (v) non-cash amortization of the inventory fair value adjustment recorded in connection with the acquisition of Waterworks and (vi) reversal of an estimated loss on disposal of asset. These items are excluded from segment operating income in order to provide better transparency of segment operating results. Accordingly, these items are not presented by segment because they are excluded from the segment profitability measure that management reviews. The following table presents segment operating income and income before income taxes ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ 2019 2018 2019 2018 Operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ RH Segment ​ $ 104,093 ​ $ 75,804 ​ $ 173,493 ​ $ 124,852 Waterworks ​ 920 ​ (338) ​ 2,014 ​ (228) Asset impairments and change in useful lives ​ (2,545) ​ — ​ (6,021) ​ — Recall accrual ​ 320 ​ 1,064 ​ 1,935 ​ 1,318 Legal settlements ​ 1,193 ​ 7,204 ​ 1,193 ​ 5,289 Reorganization related costs ​ — ​ (1,721) ​ — ​ (1,721) Impact of inventory step-up ​ — ​ (190) ​ — ​ (380) Reversal of loss on asset disposal ​ — ​ — ​ — ​ 840 Income from operations ​ 103,981 ​ 81,823 ​ 172,614 ​ 129,970 Interest expense—net ​ 24,513 ​ 15,467 ​ 45,631 ​ 30,565 (Gain) loss on extinguishment of debt ​ (954) ​ 917 ​ (954) ​ 917 Income before income taxes ​ $ 80,422 ​ $ 65,439 ​ $ 127,937 ​ $ 98,488 ​ The Company classifies its sales into furniture and non-furniture product lines. Furniture includes both indoor and outdoor furniture. Non-furniture includes lighting, textiles, fittings, fixtures, surfaces, accessories and home décor. Net revenues in each category were as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ 2019 2018 2019 2018 Furniture ​ $ 485,639 ​ $ 430,196 ​ $ 882,337 ​ $ 782,842 Non-furniture ​ 220,875 ​ 210,602 ​ 422,598 ​ 415,362 Total net revenues ​ $ 706,514 ​ $ 640,798 ​ $ 1,304,935 ​ $ 1,198,204 ​ The Company is domiciled in the United States and primarily operates its retail and outlet stores in the United States. As of August 3, 2019, the Company operates 4 retail and 2 outlet stores in Canada and 1 retail store in the U.K. Revenues from Canadian and U.K. operations, and the long-lived assets in Canada and the U.K., are not material to the Company. Canada and U.K. geographic revenues are based upon revenues recognized at the retail store locations in the respective country. No single customer accounted for more than 10% of the Company’s revenues in the three and six months ended August 3, 2019 or August 4, 2018.

The Company (Policies)

The Company (Policies)6 Months Ended
Aug. 03, 2019
Accounting Policies [Abstract]
Nature of BusinessNature of Business RH, a Delaware corporation, together with its subsidiaries (collectively, the “Company”), is a luxury home furnishings retailer that offers a growing number of categories including furniture, lighting, textiles, bathware, décor, outdoor and garden, and child and teen furnishings. These products are sold through the Company’s stores, catalogs and websites. As of August 3, 2019, the Company operated a total of 70 RH Galleries and 40 RH outlet stores in 32 states, the District of Columbia and Canada, as well as 15 Waterworks showrooms throughout the United States and in the U.K., and had sourcing operations in Shanghai and Hong Kong.
Basis of PresentationBasis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared from the Company’s records and, in management’s opinion, include all adjustments, consisting of normal recurring adjustments, and revisions due to the adoption of the new lease accounting standard described in Note 2— Recently Issued Accounting Standards Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2019 (the “2018 Form 10-K”). Certain prior year amounts have been adjusted to conform to the current period presentation due to the adoption of the new lease accounting standard. Refer to Note 2— Recently Issued Accounting Standards The results of operations for the three and six months ended August 3, 2019 presented herein are not necessarily indicative of the results to be expected for the full fiscal year.
RevisionRevisions As previously disclosed in our Annual Report on Form 10-K as of and for the year ended February 2, 2019, during the third quarter of fiscal 2018, management determined that the Company had incorrectly reported the impact during the fiscal year ended February 3, 2018 of retiring its common stock in accordance with Accounting Standards Codification (“ASC”) 505 — Equity ​ During the adoption process of the new lease accounting standard (refer to Note 2— Recently Issued Accounting Standards Exit or Disposal Cost Obligations In addition, during the adoption process of the new lease accounting standard, the Company identified an error in its previously reported consolidated statement of cash flows for the quarterly and annual periods in fiscal 2018. This error resulted in an understatement of $9.2 million of net cash provided by operating activities and an understatement of $9.2 million of net cash used in investing activities for each reporting period in fiscal 2018. There was no impact on the condensed consolidated balance sheets, condensed consolidated statements of income or the condensed consolidated statement of stockholders’ equity (deficit) related to this error. Although these errors are not considered to be material to any of the previously issued financial statements, the Company has revised the accompanying unaudited interim financial statements to reflect the correction of these errors. The following are selected line items from the Company’s condensed consolidated statements of cash flows illustrating the effect of the corrections, prior to the adoption of the modified retrospective application of the new lease accounting standard ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended August 4, 2018 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (42,717) ​ $ 9,201 ​ $ (33,516) Net cash provided by operating activities ​ 70,229 ​ 9,201 ​ 79,430 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (61,212) ​ (9,201) ​ (70,413) Net cash used in investing activities ​ (61,212) ​ (9,201) ​ (70,413) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended November 3, 2018 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (23,601) ​ $ 9,201 ​ $ (14,400) Net cash provided by operating activities ​ 127,592 ​ 9,201 ​ 136,793 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (104,403) ​ (9,201) ​ (113,604) Net cash used in investing activities ​ (104,403) ​ (9,201) ​ (113,604) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended February 2, 2019 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (452) ​ $ 9,201 ​ $ 8,749 Net cash provided by operating activities ​ 300,556 ​ 9,201 ​ 309,757 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (136,736) ​ (9,201) ​ (145,937) Net cash used in investing activities ​ (136,736) ​ (9,201) ​ (145,937) ​
Recently Issued Accounting StandardsAccounting for Leases In February 2016, the FASB issued Accounting Standards Update 2016-02— Leases Codification Improvements to Topic 842 (Leases) Leases (Topic 842)—Targeted Improvements The Company adopted the ASUs as of February 3, 2019 using a modified retrospective approach. Under this adoption method, the results of prior comparative periods are presented with an adjustment to opening retained earnings of the earliest comparative period presented. In addition, the Company elected to adopt the package of transition practical expedients, which permitted the Company not to reassess its prior conclusions regarding lease identification, lease classification and initial direct costs. The Company adopted the policy election to not separate lease and non-lease components for certain asset classes (such as real estate leases), as well as the short-term lease policy election offered under the ASUs whereby the Company does not recognize right of use assets and lease liabilities for leases with terms of 12 months or less. The Company did not apply the hindsight practical expedient upon adoption. As a result of the adoption of the ASUs, the Company recorded an increase to the fiscal 2017 (earliest comparative period) opening retained earnings balance of $4.0 million, inclusive of the tax impact. ​ The following table presents the impact of adopting the ASUs, as well as the correction of an immaterial error as discussed in Note 1— The Company in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 2, 2019 ​ As Reported ​ Adjustments and Other (1) ​ As Adjusted and Revised ASSETS ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 5,803 ​ $ — ​ $ 5,803 Accounts receivable—net ​ 40,224 ​ — ​ 40,224 Merchandise inventories ​ 531,947 ​ — ​ 531,947 Asset held for sale ​ ​ — ​ ​ 21,795 (2) ​ 21,795 Prepaid expense and other current assets ​ 104,719 ​ (521) (3) 104,198 Total current assets ​ 682,693 ​ 21,274 ​ 703,967 Property and equipment—net ​ 863,562 ​ 89,395 (4) 952,957 Operating lease right-of-use assets ​ ​ — ​ ​ 440,504 (5) ​ 440,504 Goodwill ​ 124,379 ​ — ​ 124,379 Tradenames, trademarks and domain names ​ 86,022 ​ — ​ 86,022 Deferred tax assets ​ 30,033 ​ 5,570 (6) 35,603 Other non-current assets ​ 19,345 ​ 60,241 (7) 79,586 Total assets ​ $ 1,806,034 ​ $ 616,984 ​ $ 2,423,018 LIABILITIES AND STOCKHOLDERS’ DEFICIT ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 320,441 ​ $ 56 (8) $ 320,497 Deferred revenue and customer deposits ​ 152,595 ​ — ​ 152,595 Convertible senior notes due 2019—net ​ 343,789 ​ — ​ 343,789 Operating lease liabilities ​ ​ — ​ ​ 66,249 (5) ​ 66,249 Other current liabilities ​ 101,347 ​ 8,109 (1)(9) 109,456 Total current liabilities ​ 918,172 ​ 74,414 ​ 992,586 Asset based credit facility ​ 57,500 ​ — ​ 57,500 Convertible senior notes due 2020—net ​ 271,157 ​ — ​ 271,157 Convertible senior notes due 2023—net ​ 249,151 ​ — ​ 249,151 Financing obligations under build-to-suit lease transactions ​ ​ 228,928 ​ ​ (228,928) (10) ​ — Deferred rent and lease incentives ​ ​ 53,742 ​ ​ (53,742) (10) ​ — Non-current operating lease liabilities ​ — ​ 437,557 (5) 437,557 Non-current finance lease liabilities ​ ​ — ​ ​ 421,245 (9) ​ 421,245 Other non-current obligations ​ 50,346 ​ (17,834) (1)(11) 32,512 Total liabilities ​ 1,828,996 ​ 632,712 ​ 2,461,708 Stockholders’ deficit: ​ ​ ​ ​ Preferred stock ​ — ​ — ​ — Common stock ​ 2 ​ — ​ 2 Additional paid-in capital ​ 356,422 ​ — ​ 356,422 Accumulated other comprehensive loss ​ (2,333) ​ — ​ (2,333) Accumulated deficit ​ (376,810) ​ (15,728) (1)(12) (392,538) Treasury stock ​ (243) ​ — ​ (243) Total stockholders’ deficit ​ (22,962) ​ (15,728) ​ (38,690) Total liabilities and stockholders’ deficit ​ $ 1,806,034 ​ $ 616,984 ​ $ 2,423,018 (1) During the adoption process of the ASUs, the Company identified a lease agreement that was incorrectly accounted for as an impaired lease under ASC 420— Exit or Disposal Cost Obligations in fiscal 2017 and the first quarter of fiscal 2018. Refer to “Revisions” within Note 1— The Company . (2) Represents recognition of asset held for sale under a sale-leaseback transaction. (3) Represents reclassification of prepaid rent to operating lease liabilities and other current liabilities (for finance leases). (4) Represents (i) recognition of finance lease right-of-use assets, partially offset by (ii) derecognition of non-Company owned properties that were capitalized under previously existing build-to-suit accounting policies, (iii) reclassification of construction in progress assets determined to be landlord assets to other non-current assets and (iv) reclassification of initial direct costs related to operating leases to operating lease right-of-use assets. (5) Represents recognition of operating lease right-of-use assets and corresponding current and non-current lease liabilities. The operating lease right-of-use asset also includes the reclassification of deferred rent and unamortized lease incentives related to operating leases and the reclassification of initial direct costs from property and equipment—net. (6) Represents recognition of net deferred tax assets related to the adoption of the ASUs. (7) Primarily represents reclassification from property and equipment—net of construction in progress assets determined to be landlord assets for which the lease has not yet commenced. (8) Represents a reclassification of an accrual for real estate taxes. (9) Represents recognition of the current and non-current finance lease liabilities. The other current liabilities line item also includes the reclassification of current obligations associated with leases previously reported as capital leases to finance lease liabilities. (10) Represents (i) derecognition of liabilities related to non-Company owned properties that were consolidated under previously existing build-to-suit accounting policies and (ii) reclassification of deferred rent and unamortized lease incentives to operating lease right-of-use assets upon adoption of the ASUs. (11) Represents (i) derecognition of the net lease loss liabilities as such balances were reclassified to operating lease right-of-use assets and operating current and non-current liabilities and (ii) the reclassification of non-current obligations associated with leases previously reported as capital leases to finance lease liabilities. (12) Represents a decrease to the consolidated net income for fiscal 2017 and fiscal 2018, as well as an increase of $4.0 million to beginning fiscal 2017 retained earnings related to the adoption of the ASUs. ​ Refer to Note 7— Leases Cloud Computing In August 2018, the FASB issued Accounting Standards Update 2018-15—Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract Accounting Standards Update 2015-05—Customers Accounting for Fees in a Cloud Computing Agreement.
Commitments and ContingenciesThe Company reviews the need for any loss contingency reserves and establishes reserves when, in the opinion of management, it is probable that a matter would result in liability, and the amount of loss, if any, can be reasonably estimated. Generally, in view of the inherent difficulty of predicting the outcome of those matters, particularly in cases in which claimants seek substantial or indeterminate damages, it is not possible to determine whether a liability has been incurred or to reasonably estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case no reserve is established until that time. When and to the extent that the Company does establish a reserve, there can be no assurance that any such recorded liability for estimated losses will be for the appropriate amount, and actual losses could be higher or lower than what the Company accrues from time to time. The Company believes that the ultimate resolution of its current matters will not have a material adverse effect on its condensed consolidated financial statements.

The Company (Tables)

The Company (Tables)6 Months Ended
Aug. 03, 2019
Accounting Policies [Abstract]
Summary of Condensed Consolidated Statements of Cash Flows Illustrating Effect of CorrectionsThe following are selected line items from the Company’s condensed consolidated statements of cash flows illustrating the effect of the corrections, prior to the adoption of the modified retrospective application of the new lease accounting standard ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended August 4, 2018 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (42,717) ​ $ 9,201 ​ $ (33,516) Net cash provided by operating activities ​ 70,229 ​ 9,201 ​ 79,430 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (61,212) ​ (9,201) ​ (70,413) Net cash used in investing activities ​ (61,212) ​ (9,201) ​ (70,413) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended November 3, 2018 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (23,601) ​ $ 9,201 ​ $ (14,400) Net cash provided by operating activities ​ 127,592 ​ 9,201 ​ 136,793 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (104,403) ​ (9,201) ​ (113,604) Net cash used in investing activities ​ (104,403) ​ (9,201) ​ (113,604) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal Year Ended February 2, 2019 ​ As Reported Adjustment ​ As Revised Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in accounts payable and accrued expenses ​ $ (452) ​ $ 9,201 ​ $ 8,749 Net cash provided by operating activities ​ 300,556 ​ 9,201 ​ 309,757 Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ (136,736) ​ (9,201) ​ (145,937) Net cash used in investing activities ​ (136,736) ​ (9,201) ​ (145,937) ​

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Tables)6 Months Ended
Aug. 03, 2019
Accounting Changes And Error Corrections [Abstract]
Summary of Impact of Adopting ASUs on Consolidated Statements of Balance SheetThe following table presents the impact of adopting the ASUs, as well as the correction of an immaterial error as discussed in Note 1— The Company in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ February 2, 2019 ​ As Reported ​ Adjustments and Other (1) ​ As Adjusted and Revised ASSETS ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 5,803 ​ $ — ​ $ 5,803 Accounts receivable—net ​ 40,224 ​ — ​ 40,224 Merchandise inventories ​ 531,947 ​ — ​ 531,947 Asset held for sale ​ ​ — ​ ​ 21,795 (2) ​ 21,795 Prepaid expense and other current assets ​ 104,719 ​ (521) (3) 104,198 Total current assets ​ 682,693 ​ 21,274 ​ 703,967 Property and equipment—net ​ 863,562 ​ 89,395 (4) 952,957 Operating lease right-of-use assets ​ ​ — ​ ​ 440,504 (5) ​ 440,504 Goodwill ​ 124,379 ​ — ​ 124,379 Tradenames, trademarks and domain names ​ 86,022 ​ — ​ 86,022 Deferred tax assets ​ 30,033 ​ 5,570 (6) 35,603 Other non-current assets ​ 19,345 ​ 60,241 (7) 79,586 Total assets ​ $ 1,806,034 ​ $ 616,984 ​ $ 2,423,018 LIABILITIES AND STOCKHOLDERS’ DEFICIT ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ Accounts payable and accrued expenses ​ $ 320,441 ​ $ 56 (8) $ 320,497 Deferred revenue and customer deposits ​ 152,595 ​ — ​ 152,595 Convertible senior notes due 2019—net ​ 343,789 ​ — ​ 343,789 Operating lease liabilities ​ ​ — ​ ​ 66,249 (5) ​ 66,249 Other current liabilities ​ 101,347 ​ 8,109 (1)(9) 109,456 Total current liabilities ​ 918,172 ​ 74,414 ​ 992,586 Asset based credit facility ​ 57,500 ​ — ​ 57,500 Convertible senior notes due 2020—net ​ 271,157 ​ — ​ 271,157 Convertible senior notes due 2023—net ​ 249,151 ​ — ​ 249,151 Financing obligations under build-to-suit lease transactions ​ ​ 228,928 ​ ​ (228,928) (10) ​ — Deferred rent and lease incentives ​ ​ 53,742 ​ ​ (53,742) (10) ​ — Non-current operating lease liabilities ​ — ​ 437,557 (5) 437,557 Non-current finance lease liabilities ​ ​ — ​ ​ 421,245 (9) ​ 421,245 Other non-current obligations ​ 50,346 ​ (17,834) (1)(11) 32,512 Total liabilities ​ 1,828,996 ​ 632,712 ​ 2,461,708 Stockholders’ deficit: ​ ​ ​ ​ Preferred stock ​ — ​ — ​ — Common stock ​ 2 ​ — ​ 2 Additional paid-in capital ​ 356,422 ​ — ​ 356,422 Accumulated other comprehensive loss ​ (2,333) ​ — ​ (2,333) Accumulated deficit ​ (376,810) ​ (15,728) (1)(12) (392,538) Treasury stock ​ (243) ​ — ​ (243) Total stockholders’ deficit ​ (22,962) ​ (15,728) ​ (38,690) Total liabilities and stockholders’ deficit ​ $ 1,806,034 ​ $ 616,984 ​ $ 2,423,018 (1) During the adoption process of the ASUs, the Company identified a lease agreement that was incorrectly accounted for as an impaired lease under ASC 420— Exit or Disposal Cost Obligations in fiscal 2017 and the first quarter of fiscal 2018. Refer to “Revisions” within Note 1— The Company . (2) Represents recognition of asset held for sale under a sale-leaseback transaction. (3) Represents reclassification of prepaid rent to operating lease liabilities and other current liabilities (for finance leases). (4) Represents (i) recognition of finance lease right-of-use assets, partially offset by (ii) derecognition of non-Company owned properties that were capitalized under previously existing build-to-suit accounting policies, (iii) reclassification of construction in progress assets determined to be landlord assets to other non-current assets and (iv) reclassification of initial direct costs related to operating leases to operating lease right-of-use assets. (5) Represents recognition of operating lease right-of-use assets and corresponding current and non-current lease liabilities. The operating lease right-of-use asset also includes the reclassification of deferred rent and unamortized lease incentives related to operating leases and the reclassification of initial direct costs from property and equipment—net. (6) Represents recognition of net deferred tax assets related to the adoption of the ASUs. (7) Primarily represents reclassification from property and equipment—net of construction in progress assets determined to be landlord assets for which the lease has not yet commenced. (8) Represents a reclassification of an accrual for real estate taxes. (9) Represents recognition of the current and non-current finance lease liabilities. The other current liabilities line item also includes the reclassification of current obligations associated with leases previously reported as capital leases to finance lease liabilities. (10) Represents (i) derecognition of liabilities related to non-Company owned properties that were consolidated under previously existing build-to-suit accounting policies and (ii) reclassification of deferred rent and unamortized lease incentives to operating lease right-of-use assets upon adoption of the ASUs. (11) Represents (i) derecognition of the net lease loss liabilities as such balances were reclassified to operating lease right-of-use assets and operating current and non-current liabilities and (ii) the reclassification of non-current obligations associated with leases previously reported as capital leases to finance lease liabilities. (12) Represents a decrease to the consolidated net income for fiscal 2017 and fiscal 2018, as well as an increase of $4.0 million to beginning fiscal 2017 retained earnings related to the adoption of the ASUs.

Prepaid Expense and Other Ass_2

Prepaid Expense and Other Assets (Tables)6 Months Ended
Aug. 03, 2019
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Prepaid Expense and Other Current AssetsPrepaid expense and other current assets consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Insurance recovery receivable (1) ​ $ 50,171 ​ $ 50,000 Capitalized catalog costs ​ 12,378 ​ 16,178 Vendor deposits ​ 11,407 ​ 11,836 Right of return asset for merchandise ​ 6,645 ​ 5,883 Federal and state tax receivable ​ ​ 1,036 ​ ​ 4,862 Prepaid expense and other current assets ​ 17,660 ​ 15,439 Total prepaid expense and other current assets ​ $ 99,297 ​ $ 104,198 (1) Refer to Note 15— Commitments and Contingencies .
Schedule of Other Non-Current AssetsOther non-current assets consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Landlord assets under construction ​ $ 94,710 ​ $ 63,159 Promissory note receivable, including interest ​ 5,229 ​ 5,104 Deferred financing fees ​ 3,722 ​ 3,415 Other deposits ​ 5,559 ​ 5,068 Other non-current assets ​ 3,033 ​ 2,840 Total other non-current assets ​ $ 112,253 ​ $ 79,586 ​

Goodwill, Tradenames, Tradema_2

Goodwill, Tradenames, Trademarks and Domain Names (Tables)6 Months Ended
Aug. 03, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill, Tradenames, Trademarks and Domain Names Activity​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ ​ ​ ​ February 2, ​ Currency ​ August 3, ​ ​ 2019 ​ Translation ​ 2019 RH Segment ​ ​ ​ Goodwill ​ $ 124,379 ​ $ (9) ​ $ 124,370 Tradenames, trademarks and domain names ​ 48,563 ​ — ​ 48,563 ​ ​ ​ ​ Waterworks (1) ​ ​ ​ Tradename (2) ​ 37,459 ​ — ​ 37,459 (1) Waterworks reporting unit goodwill of $51.1 million recognized upon acquisition in fiscal 2016 was fully impaired as of February 2, 2019, with $17.4 million and $33.7 million impairment recorded in fiscal 2018 and fiscal 2017, respectively . (2) The Waterworks reporting unit tradename is presented net of an impairment charge of $14.6 million recorded in fiscal 2018.

Accounts Payable, Accrued Exp_2

Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables)6 Months Ended
Aug. 03, 2019
Payables And Accruals [Abstract]
Accounts Payable and Accrued ExpensesAccounts payable and accrued expenses consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Accounts payable ​ $ 145,583 ​ $ 183,039 Accrued compensation ​ 47,979 ​ 64,192 Accrued freight and duty ​ 24,115 ​ 20,787 Accrued sales taxes ​ 18,743 ​ 18,354 Accrued catalog costs ​ 14,490 ​ 10,276 Accrued occupancy ​ 11,528 ​ 10,839 Accrued professional fees ​ 3,442 ​ 2,050 Other accrued expenses ​ 23,833 ​ 10,960 Total accounts payable and accrued expenses ​ $ 289,713 ​ $ 320,497 ​
Schedule of Other Current LiabilitiesOther current liabilities consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Provision for legal settlement (1) ​ $ 50,171 ​ $ 50,000 Allowance for sales returns ​ ​ 22,380 ​ ​ 19,821 Current portion of debt ​ 21,514 ​ 892 Unredeemed gift card and merchandise credit liability ​ 17,177 ​ 17,192 Finance lease liabilities ​ ​ 8,127 ​ ​ 9,184 Product recall reserve ​ 4,647 ​ 7,767 Federal tax payable ​ 2,413 ​ 719 Other current liabilities ​ 5,454 ​ 3,881 Total other current liabilities ​ $ 131,883 ​ $ 109,456 (1) Refer to Note 15— Commitments and Contingencies.

Other Non-Current Obligations (

Other Non-Current Obligations (Tables)6 Months Ended
Aug. 03, 2019
Other Liabilities Disclosure [Abstract]
Schedule of Other Non-Current ObligationsOther non-current obligations consist of the following ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Notes payable for share repurchases ​ $ 18,741 ​ $ 18,741 Unrecognized tax benefits ​ 3,222 ​ 2,992 Rollover units and profit interests (1) ​ 2,850 ​ 2,637 Deferred contract incentive (2) ​ 1,786 ​ 2,976 Other non-current obligations ​ 3,549 ​ 5,166 Total other non-current obligations ​ $ 30,148 ​ $ 32,512 (1) Represents rollover units and profit interests associated with the acquisition of Waterworks. Refer to Note 14 — Stock-Based Compensation . (2) Represents the non-current portion of an incentive payment received in relation to a 5-year service agreement, which is amortized over the term of the agreement. .

Leases (Tables)

Leases (Tables)6 Months Ended
Aug. 03, 2019
Leases [Abstract]
Summary of lease costsLease costs—net consist of the following ( in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ August 3, August 4, ​ August 3, August 4, ​ 2019 2018 ​ 2019 2018 Operating lease cost (1)(2) ​ $ 23,259 ​ $ 22,743 $ 42,376 ​ $ 44,089 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of leased assets (1) ​ ​ 9,235 ​ ​ 6,441 ​ ​ 18,087 ​ ​ 12,340 Interest on lease liabilities (3) ​ ​ 5,672 ​ ​ 3,319 ​ ​ 11,186 ​ ​ 6,411 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sublease income (4) ​ ​ (1,507) ​ ​ (2,261) ​ ​ (4,789) ​ ​ (3,271) Total lease costs—net ​ $ 36,659 ​ $ 30,242 ​ $ 66,860 ​ $ 59,569 (1) Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the condensed consolidated statements of income based on the Company’s policy. Refer to Note 3— Significant Accounting Policies in the 2018 Form 10-K. (2) Includes short-term leases and variable lease costs. (3) Included in interest expense—net on the condensed consolidated statements of income. (4) Included in selling, general and administrative expenses on the condensed consolidated statements of income.
Summary of lease right-of-use assets and lease liabilitiesLease right-of-use assets and lease liabilities consist of the following ( in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ ​ ​ 2019 ​ 2019 ​ ​ Balance Sheet Classification ​ ​ ​ ​ ​ ​ Assets ​ ​ ​ ​ ​ ​ ​ ​ Operating leases ​ Operating lease right-of-use assets ​ $ 421,001 ​ $ 440,504 Finance leases (1)(2) ​ Property and equipment—net ​ ​ 650,699 ​ ​ 646,875 Total lease right-of-use assets ​ ​ ​ ​ 1,071,700 ​ ​ 1,087,379 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ ​ ​ ​ Operating leases ​ Operating lease liabilities ​ $ 57,162 ​ $ 66,249 Finance leases ​ Other current liabilities ​ ​ 8,127 ​ ​ 9,184 Total lease liabilities—current ​ ​ ​ ​ 65,289 ​ ​ 75,433 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-current ​ ​ ​ ​ ​ ​ ​ ​ Operating leases ​ Non-current operating lease liabilities ​ $ 415,803 ​ $ 437,557 Finance leases ​ Non-current finance lease liabilities ​ ​ 433,591 ​ ​ 421,245 Total lease liabilities—non-current ​ ​ ​ ​ 849,394 ​ ​ 858,802 Total lease liabilities ​ ​ ​ $ 914,683 ​ $ 934,235 (1) Finance lease right-of-use assets include capitalized amounts related to the Company’s construction activities to design and build leased assets, as well as rent payments made to landlords for which the respective Galleries are not yet opened. (2) Finance lease right-of-use assets are recorded net of accumulated amortization of $73.3 million and $55.5 million as of August 3, 2019 and February 2, 2019, respectively. ​
Summary of maturities of operating lease liabilitiesThe maturities of lease liabilities are as follows as of August 3, 2019 ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal year Operating Finance Total Remainder of fiscal 2019 ​ $ 33,456 ​ $ 14,014 ​ $ 47,470 2020 ​ ​ 78,990 ​ ​ 33,456 ​ ​ 112,446 2021 ​ ​ 65,068 ​ ​ 33,908 ​ ​ 98,976 2022 ​ ​ 57,226 ​ ​ 34,385 ​ ​ 91,611 2023 ​ ​ 53,867 ​ ​ 35,153 ​ ​ 89,020 2024 ​ ​ 49,901 ​ ​ 35,689 ​ ​ 85,590 Thereafter ​ ​ 228,093 ​ ​ 548,302 ​ ​ 776,395 Total lease payments (1) ​ ​ 566,601 ​ ​ 734,907 ​ ​ 1,301,508 Less—imputed interest (2) ​ ​ (93,636) ​ ​ (293,189) ​ ​ (386,825) Present value of lease liabilities (3) ​ $ 472,965 ​ $ 441,718 ​ $ 914,683 (1) Total lease payments exclude $369.1 million of legally binding payments for leases signed but not yet commenced as of August 3, 2019. (2) Calculated using the incremental borrowing rate for each lease at lease commencement. (3) Excludes future commitments under short-term lease agreements of $1.4 million as of August 3, 2019. ​
Summary of maturities of finance lease liabilities​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fiscal year Operating Finance Total Remainder of fiscal 2019 ​ $ 33,456 ​ $ 14,014 ​ $ 47,470 2020 ​ ​ 78,990 ​ ​ 33,456 ​ ​ 112,446 2021 ​ ​ 65,068 ​ ​ 33,908 ​ ​ 98,976 2022 ​ ​ 57,226 ​ ​ 34,385 ​ ​ 91,611 2023 ​ ​ 53,867 ​ ​ 35,153 ​ ​ 89,020 2024 ​ ​ 49,901 ​ ​ 35,689 ​ ​ 85,590 Thereafter ​ ​ 228,093 ​ ​ 548,302 ​ ​ 776,395 Total lease payments (1) ​ ​ 566,601 ​ ​ 734,907 ​ ​ 1,301,508 Less—imputed interest (2) ​ ​ (93,636) ​ ​ (293,189) ​ ​ (386,825) Present value of lease liabilities (3) ​ $ 472,965 ​ $ 441,718 ​ $ 914,683 (1) Total lease payments exclude $369.1 million of legally binding payments for leases signed but not yet commenced as of August 3, 2019. (2) Calculated using the incremental borrowing rate for each lease at lease commencement. (3) Excludes future commitments under short-term lease agreements of $1.4 million as of August 3, 2019. ​
Summary of supplemental information related to leasesSupplemental information related to leases consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ August 3, ​ ​ August 4, ​ 2019 ​ 2018 Weighted-average remaining lease term (years) ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 8.9 ​ ​ 9.6 Finance leases ​ ​ 18.9 ​ ​ 18.4 ​ ​ ​ ​ ​ ​ ​ Weighted-average discount rate ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 3.81% ​ ​ 3.74% Finance leases ​ ​ 5.26% ​ ​ 4.95% ​
Summary of other information related to leasesOther information related to leases consists of the following ( in thousands ): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ August 3, ​ ​ August 4, ​ 2019 ​ 2018 Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ (53,670) ​ $ (54,287) Operating cash flows from finance leases ​ ​ (11,186) ​ ​ (6,411) Financing cash flows from finance leases ​ ​ (4,399) ​ ​ (3,567) Total cash outflows from leases ​ $ (69,255) ​ $ (64,265) ​ ​ ​ ​ ​ ​ ​ Lease right-of-use assets obtained in exchange for lease obligations (non-cash) ​ ​ ​ ​ ​ ​ Finance leases ​ $ 17,997 ​ $ 27,874 Operating leases ​ ​ 13,839 ​ ​ 15,024 ​

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)6 Months Ended
Aug. 03, 2019
Convertible senior notes due 2023
Carrying Values of Notes Excluding the Discounts upon Original Issuance and Third Party Offering CostsThe carrying values of the 2023 Notes, excluding the discounts upon original issuance and third party offering costs, are as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Liability component ​ ​ Principal ​ $ 335,000 ​ $ 335,000 Less: Debt discount ​ (73,152) ​ (81,311) Net carrying amount ​ $ 261,848 ​ $ 253,689 Equity component (1) ​ $ 90,990 ​ $ 90,990 (1) Included in additional paid-in capital on the condensed consolidated balance sheets.
Convertible senior notes due 2020
Carrying Values of Notes Excluding the Discounts upon Original Issuance and Third Party Offering CostsThe carrying values of the 2020 Notes, excluding the discounts upon original issuance and third party offering costs, are as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ August 3, February 2, ​ ​ 2019 ​ 2019 Liability component ​ ​ ​ ​ Principal ​ $ 300,000 ​ $ 300,000 Less: Debt discount ​ (18,132) ​ (27,081) Net carrying amount ​ $ 281,868 ​ $ 272,919 Equity component (1) ​ $ 84,003 ​ $ 84,003 (1) Included in additional paid-in capital on the condensed consolidated balance sheets.
Convertible senior notes due 2019
Carrying Values of Notes Excluding the Discounts upon Original Issuance and Third Party Offering CostsAs of August 3, 2019, the 2019 Notes are no longer outstanding. As of February 2, 2019, the carrying value of the 2019 Notes, excluding the discounts and commissions payable to the initial purchasers and third party offering costs, was as follows ( in thousands ​ ​ ​ ​ ​ February 2, ​ ​ 2019 Liability component ​ Principal ​ $ 350,000 Less: Debt discount ​ (5,854) Net carrying amount ​ $ 344,146 Equity component (1) ​ $ 70,482 (1) Included in additional paid-in capital on the condensed consolidated balance sheets.

Credit Facilities (Tables)

Credit Facilities (Tables)6 Months Ended
Aug. 03, 2019
Debt Disclosure [Abstract]
Schedule of Credit FacilitiesThe outstanding balances under the Company’s credit facilities were as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ 2019 ​ 2019 ​ ​ Outstanding ​ Unamortized Debt ​ Net Carrying ​ Outstanding ​ Unamortized Debt ​ Net Carrying ​ Amount Issuance Costs Amount Amount Issuance Costs Amount Asset based credit facility ​ $ 145,000 ​ $ — ​ $ 145,000 ​ $ 57,500 ​ $ — ​ $ 57,500 FILO term loan ​ 120,000 ​ (914) ​ 119,086 ​ — ​ — ​ — Second lien term loan ​ ​ 200,000 ​ ​ (2,738) ​ ​ 197,262 ​ ​ — ​ — ​ — Equipment promissory notes (1) ​ 64,007 ​ (380) ​ 63,627 ​ — ​ — ​ — Total credit facilities ​ $ 529,007 ​ $ (4,032) ​ $ 524,975 ​ $ 57,500 ​ $ — ​ $ 57,500 (1) Represents total equipment security notes secured by certain of the Company’s property and equipment, of which $21.5 million outstanding was included in other current liabilities and $42.5 million outstanding was included in other non-current obligations on the condensed consolidated balance sheets.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)6 Months Ended
Aug. 03, 2019
Fair Value Disclosures [Abstract]
Estimated Fair Value and Carrying Value of NotesThe estimated fair value and carrying value of the 2019 Notes, 2020 Notes and 2023 Notes were as follows ( in thousands

Net Income Per Share (Tables)

Net Income Per Share (Tables)6 Months Ended
Aug. 03, 2019
Earnings Per Share [Abstract]
Schedule of Weighted Average Shares Used for Net Income per ShareThe weighted-average shares used for net income per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ ​ 2019 2018 2019 2018 Weighted-average shares—basic ​ ​ 18,465,876 ​ 21,925,702 ​ 19,221,367 ​ 21,735,364 Effect of dilutive stock-based awards ​ 3,858,236 5,158,591 4,165,391 4,421,897 Effect of dilutive convertible senior notes (1) ​ — 412,268 242,292 206,134 Weighted-average shares—diluted ​ 22,324,112 27,496,561 23,629,050 26,363,395 (1) The 2019 Notes, 2020 Notes and 2023 Notes have an impact on the Company’s dilutive share count beginning at stock prices of $116.09 per share, $118.13 per share and $193.65 per share, respectively . The 2019 Notes matured on June 15, 2019 and did not have an impact of the Company’s dilutive share count post-maturity.
Anti-Dilutive Securities Excluded from Diluted Net Income per ShareThe following number of options and restricted stock units were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ 2019 2018 2019 2018 Options 717,627 ​ 209,441 ​ 590,567 ​ 347,978 Restricted stock units — — — 5,250 Total anti-dilutive stock-based awards 717,627 209,441 590,567 353,228 ​

Segment Reporting (Tables)

Segment Reporting (Tables)6 Months Ended
Aug. 03, 2019
Segment Reporting [Abstract]
Summary of Statements of Income Metrics Reviewed by CODM to Evaluate Performance Internally or As required under ASC 280 - Segment ReportingThe following tables presents the statements of income metrics reviewed by the CODM to evaluate performance internally or as required under ASC 280— Segment Reporting in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ August 3, ​ August 4, ​ ​ 2019 ​ 2018 ​ RH Segment Waterworks Total RH Segment Waterworks Total Net revenues ​ $ 672,328 ​ $ 34,186 ​ $ 706,514 ​ $ 607,604 ​ $ 33,194 ​ $ 640,798 Gross profit ​ 280,469 ​ 14,489 ​ 294,958 ​ 255,505 ​ 12,839 ​ 268,344 Depreciation and amortization ​ 24,170 ​ 1,151 ​ 25,321 ​ 20,236 ​ 1,118 ​ 21,354 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ August 3, ​ August 4, ​ ​ 2019 ​ 2018 ​ RH Segment Waterworks Total RH Segment Waterworks Total Net revenues ​ $ 1,236,034 ​ $ 68,901 ​ $ 1,304,935 ​ $ 1,133,611 ​ $ 64,593 ​ $ 1,198,204 Gross profit ​ 498,412 ​ 29,360 ​ 527,772 ​ 451,211 ​ 26,466 ​ 477,677 Depreciation and amortization ​ 50,174 ​ 2,336 ​ 52,510 ​ 39,709 ​ 2,230 ​ 41,939
Summary of Balance Sheet Metrics as Required Under ASC 280 - Segment ReportingThe following table presents the balance sheet metrics as required under ASC 280— Segment Reporting in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ August 3, ​ February 2, ​ ​ 2019 ​ 2019 ​ RH Segment Waterworks Total RH Segment Waterworks Total Goodwill (1) ​ $ 124,370 ​ $ — ​ $ 124,370 ​ $ 124,379 ​ $ — ​ $ 124,379 Tradenames, trademarks and domain names (2) ​ 48,563 ​ 37,459 ​ 86,022 ​ 48,563 ​ 37,459 ​ 86,022 Total assets ​ 2,240,904 ​ 146,904 ​ 2,387,808 ​ 2,273,951 ​ 149,067 ​ 2,423,018 (1) The Waterworks reporting unit goodwill of $51.1 million recognized upon acquisition in fiscal 2016 was fully impaired as of February 2, 2019, with $17.4 million and $33.7 million impairment recorded in fiscal 2018 and fiscal 2017, respectively. (2) The Waterworks reporting unit tradename is presented net of an impairment charge of $14.6 million recorded in fiscal 2018.
Schedule of Segment Operating Income and Income Before Income TaxesThe following table presents segment operating income and income before income taxes ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ 2019 2018 2019 2018 Operating income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ RH Segment ​ $ 104,093 ​ $ 75,804 ​ $ 173,493 ​ $ 124,852 Waterworks ​ 920 ​ (338) ​ 2,014 ​ (228) Asset impairments and change in useful lives ​ (2,545) ​ — ​ (6,021) ​ — Recall accrual ​ 320 ​ 1,064 ​ 1,935 ​ 1,318 Legal settlements ​ 1,193 ​ 7,204 ​ 1,193 ​ 5,289 Reorganization related costs ​ — ​ (1,721) ​ — ​ (1,721) Impact of inventory step-up ​ — ​ (190) ​ — ​ (380) Reversal of loss on asset disposal ​ — ​ — ​ — ​ 840 Income from operations ​ 103,981 ​ 81,823 ​ 172,614 ​ 129,970 Interest expense—net ​ 24,513 ​ 15,467 ​ 45,631 ​ 30,565 (Gain) loss on extinguishment of debt ​ (954) ​ 917 ​ (954) ​ 917 Income before income taxes ​ $ 80,422 ​ $ 65,439 ​ $ 127,937 ​ $ 98,488
Net RevenuesNet revenues in each category were as follows ( in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ August 3, ​ August 4, ​ August 3, ​ August 4, ​ 2019 2018 2019 2018 Furniture ​ $ 485,639 ​ $ 430,196 ​ $ 882,337 ​ $ 782,842 Non-furniture ​ 220,875 ​ 210,602 ​ 422,598 ​ 415,362 Total net revenues ​ $ 706,514 ​ $ 640,798 ​ $ 1,304,935 ​ $ 1,198,204

The Company - Additional Inform

The Company - Additional Information (Detail) $ in Thousands6 Months Ended12 Months Ended
Aug. 04, 2018USD ($)Feb. 02, 2019USD ($)Feb. 03, 2018USD ($)Aug. 03, 2019USD ($)itemstatestore
Organization Consolidation and Presentation of Financial Statements
Number of galleries | item70
Number of outlet stores | store40
Number of states | state32
Number of waterworks showrooms | item15
Stockholders' deficit:
Additional paid-in capital $ 356,422 $ 355,010
Accumulated deficit(392,538) $ (530,150)
Treasury stock243
Overstatement of treasury Stock
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount $ 19,500
Overstatement of additional paid-in capital
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount19,500
Overstatement of net income
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount900 $ 1,400
Overstatement of retained earnings
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount2,300 1,400
Understatement of accumulated deficit
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount2,300
Understatement of other non-current obligations
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount3,300
Overstatement of other current liabilities
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount1,000
Understatement of net cash provided by operating activities
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount9,200
Understatement of net cash used in investing activities
Organization Consolidation and Presentation of Financial Statements
Revision due to prior year misstatement in current year financial statements, amount9,200
As Reported
Stockholders' deficit:
Additional paid-in capital944,600
Accumulated deficit223,500 (376,800)152,400
Treasury stock1,020,100
As Revised
Stockholders' deficit:
Additional paid-in capital925,100
Accumulated deficit221,200 $ (379,100) $ 151,000
Treasury stock $ 1,000,600

The Company - Summary of Conden

The Company - Summary of Condensed Consolidated Cash Flows Illustrating Effect of Corrections (Details) - USD ($) $ in Thousands6 Months Ended9 Months Ended12 Months Ended
Aug. 03, 2019Aug. 04, 2018Nov. 03, 2018Feb. 02, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Change in accounts payable and accrued expenses $ (40,073) $ (31,707)
Net cash provided by operating activities97,133 49,020
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(25,283)(42,916)
Net cash used in investing activities $ (25,283)(42,916)
As Reported
CASH FLOWS FROM OPERATING ACTIVITIES
Change in accounts payable and accrued expenses(42,717) $ (23,601) $ (452)
Net cash provided by operating activities70,229 127,592 300,556
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(61,212)(104,403)(136,736)
Net cash used in investing activities61,212 (104,403)(136,736)
Adjustment
CASH FLOWS FROM OPERATING ACTIVITIES
Change in accounts payable and accrued expenses9,201 9,201 9,201
Net cash provided by operating activities9,201 9,201 9,201
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(9,201)(9,201)(9,201)
Net cash used in investing activities9,201 (9,201)(9,201)
As Revised
CASH FLOWS FROM OPERATING ACTIVITIES
Change in accounts payable and accrued expenses(33,516)(14,400)8,749
Net cash provided by operating activities79,430 136,793 309,757
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(70,413)(113,604)(145,937)
Net cash used in investing activities $ 70,413 $ (113,604) $ (145,937)

Recently Issued Accounting St_3

Recently Issued Accounting Standards - Additional Information - (Detail) $ in Millions12 Months Ended
Feb. 03, 2018USD ($)
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle
Opening retained earnings balance, inclusive of tax impact $ 4

Recently Issued Accounting St_4

Recently Issued Accounting Standards - Summary of Impact of Adopting ASU Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in ThousandsAug. 03, 2019May 04, 2019Feb. 02, 2019Aug. 04, 2018May 05, 2018Feb. 03, 2018
Current assets:
Cash and cash equivalents $ 11,555 $ 5,803 $ 22,199 $ 17,907
Accounts receivable-net44,287 40,224
Merchandise inventories480,688 531,947
Asset held for sale21,795 21,795
Prepaid expense and other current assets99,297 104,198
Total current assets657,622 703,967
Property and equipment-net950,594 952,957
Operating lease right-of-use assets421,001 440,504
Goodwill124,370 124,379
Tradenames, trademarks and domain names86,022 86,022
Deferred tax assets35,946 35,603
Other non-current assets112,253 79,586
Total assets2,387,808 2,423,018
Current liabilities:
Accounts payable and accrued expenses289,713 320,497
Deferred revenue and customer deposits165,511 152,595
Operating lease liabilities57,162 66,249
Other current liabilities131,883 109,456
Total current liabilities924,957 992,586
Asset based credit facility524,975 57,500
Non-current operating lease liabilities415,803 437,557
Non-current finance lease liabilities433,591 421,245
Other non-current obligations30,148 32,512
Total liabilities2,565,726 2,461,708
Stockholders' deficit:
Preferred stock
Common stock2 2
Additional paid-in capital355,010 356,422
Accumulated other comprehensive loss(2,780)(2,333)
Accumulated deficit(530,150)(392,538)
Treasury stock(243)
Total stockholders' deficit(177,918) $ (247,373)(38,690)141,509 $ 5,226 (8,155)
Total liabilities and stockholders' deficit2,387,808 2,423,018
Convertible senior notes due 2019
Current liabilities:
Convertible senior notes due-net343,789
Convertible senior notes due 2020
Current liabilities:
Convertible senior notes due-net280,688
Convertible senior notes due-net271,157
Convertible senior notes due 2023
Current liabilities:
Convertible senior notes due-net $ 257,766 249,151
As Reported
Stockholders' deficit:
Additional paid-in capital944,600
Accumulated deficit(376,800)223,500 $ 152,400
Treasury stock $ (1,020,100)
Accounting Standards Update 2016-02 | As Reported
Current assets:
Cash and cash equivalents5,803
Accounts receivable-net40,224
Merchandise inventories531,947
Prepaid expense and other current assets104,719
Total current assets682,693
Property and equipment-net863,562
Goodwill124,379
Tradenames, trademarks and domain names86,022
Deferred tax assets30,033
Other non-current assets19,345
Total assets1,806,034
Current liabilities:
Accounts payable and accrued expenses320,441
Deferred revenue and customer deposits152,595
Other current liabilities101,347
Total current liabilities918,172
Asset based credit facility57,500
Financing obligations under build-to-suit lease transactions228,928
Deferred rent and lease incentives53,742
Other non-current obligations50,346
Total liabilities1,828,996
Stockholders' deficit:
Preferred stock
Common stock2
Additional paid-in capital356,422
Accumulated other comprehensive loss(2,333)
Accumulated deficit(376,810)
Treasury stock(243)
Total stockholders' deficit(22,962)
Total liabilities and stockholders' deficit1,806,034
Accounting Standards Update 2016-02 | As Reported | Convertible senior notes due 2019
Current liabilities:
Convertible senior notes due-net343,789
Accounting Standards Update 2016-02 | As Reported | Convertible senior notes due 2020
Current liabilities:
Convertible senior notes due-net271,157
Accounting Standards Update 2016-02 | As Reported | Convertible senior notes due 2023
Current liabilities:
Convertible senior notes due-net249,151
Accounting Standards Update 2016-02 | Adjustment
Current assets:
Asset held for sale21,795
Prepaid expense and other current assets(521)
Total current assets21,274
Property and equipment-net89,395
Operating lease right-of-use assets440,504
Deferred tax assets5,570
Other non-current assets60,241
Total assets616,984
Current liabilities:
Accounts payable and accrued expenses56
Operating lease liabilities66,249
Other current liabilities8,109
Total current liabilities74,414
Financing obligations under build-to-suit lease transactions(228,928)
Deferred rent and lease incentives(53,742)
Non-current operating lease liabilities437,557
Non-current finance lease liabilities421,245
Other non-current obligations(17,834)
Total liabilities632,712
Stockholders' deficit:
Preferred stock
Accumulated deficit(15,728)
Total stockholders' deficit(15,728)
Total liabilities and stockholders' deficit $ 616,984

Recently Issued Accounting St_5

Recently Issued Accounting Standards - Summary of Impact of Adopting ASU Condensed Consolidated Balance Sheets Footnotes (Detail) - Accounting Standards Update 2016-02 $ in Millions12 Months Ended
Feb. 03, 2018USD ($)
New Accounting Pronouncements or Change in Accounting Principle
Increase to retained earnings $ 4
Adjustment
New Accounting Pronouncements or Change in Accounting Principle
Increase to retained earnings $ 4

Prepaid Expense and Other Ass_3

Prepaid Expense and Other Assets - Prepaid Expense and Other Current Assets (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Prepaid Expense And Other Assets Current [Abstract]
Insurance recovery receivable $ 50,171 $ 50,000
Capitalized catalog costs12,378 16,178
Vendor deposits11,407 11,836
Federal and state tax receivable1,036 4,862
Right of return asset for merchandise6,645 5,883
Prepaid expense and other current assets17,660 15,439
Total prepaid expense and other current assets $ 99,297 $ 104,198

Prepaid Expense and Other Ass_4

Prepaid Expense and Other Assets - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Other Assets Noncurrent [Abstract]
Landlord assets under construction $ 94,710 $ 63,159
Promissory note receivable, including interest5,229 5,104
Deferred financing fees3,722 3,415
Other deposits5,559 5,068
Other non-current assets3,033 2,840
Total other non-current assets $ 112,253 $ 79,586

Goodwill, Tradenames, Tradema_3

Goodwill, Tradenames, Trademarks and Domain Names - Goodwill and Trademarks and Domain Names Activity (Detail) $ in Thousands6 Months Ended
Aug. 03, 2019USD ($)
Indefinite Lived Intangible Assets by Major Class
Beginning Balance $ 124,379
Ending Balance124,370
Beginning Balance86,022
Ending Balance86,022
RH Segment
Indefinite Lived Intangible Assets by Major Class
Beginning Balance124,379
Foreign Currency Translation(9)
Ending Balance124,370
Beginning Balance48,563
Ending Balance48,563
Waterworks
Indefinite Lived Intangible Assets by Major Class
Beginning Balance37,459
Ending Balance $ 37,459

Goodwill, Tradenames, Tradema_4

Goodwill, Tradenames, Trademarks and Domain Names - Goodwill and Trademarks and Domain Names Activity Footnotes (Detail) - Waterworks - USD ($) $ in Millions12 Months Ended24 Months Ended
Feb. 02, 2019Feb. 03, 2018Feb. 02, 2019
Finite Lived Intangible Assets
Goodwill impairment charge $ 17.4 $ 33.7 $ 51.1
Tradename impairment charge $ 14.6

Accounts Payable, Accrued Exp_3

Accounts Payable, Accrued Expenses and Other Current Liabilities - Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Payables And Accruals [Abstract]
Accounts payable $ 145,583 $ 183,039
Accrued compensation47,979 64,192
Accrued freight and duty24,115 20,787
Accrued sales taxes18,743 18,354
Accrued occupancy11,528 10,839
Accrued catalog costs14,490 10,276
Accrued professional fees3,442 2,050
Other accrued expenses23,833 10,960
Total accounts payable and accrued expenses $ 289,713 $ 320,497

Accounts Payable, Accrued Exp_4

Accounts Payable, Accrued Expenses and Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Payables And Accruals [Abstract]
Provision for legal settlement and unpaid legal fees $ 50,171 $ 50,000
Allowance for sales returns22,380 19,821
Unredeemed gift card and merchandise credit liability17,177 17,192
Current portion of debt21,514 892
Finance lease liabilities8,127 9,184
Federal and state tax payable2,413 719
Product recall reserves4,647 7,767
Other current liabilities5,454 3,881
Total other current liabilities $ 131,883 $ 109,456

Accounts Payable, Accrued Exp_5

Accounts Payable, Accrued Expenses and Other Current Liabilities - Contract Liabilities (Detail) $ in Millions3 Months Ended6 Months Ended
Aug. 03, 2019USD ($)Aug. 04, 2018USD ($)Aug. 03, 2019USD ($)Aug. 04, 2018USD ($)
Contract Liabilities
Revenue recognized from gift cards and merchandise credits $ 4.6 $ 4.8 $ 9.3 $ 9.7
Gift card breakage recorded $ 0.4 $ 0.4 $ 0.8 $ 0.8
Gift card and merchandise credit liabilities expected to be recognized when gift cards are redeemed, percent70

Other Non-Current Obligations -

Other Non-Current Obligations - Schedule of Other Non-Current Obligations (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Other Liabilities Noncurrent [Abstract]
Notes payable for share repurchases $ 18,741 $ 18,741
Unrecognized tax benefits3,222 2,992
Rollover units and profit interests2,850 2,637
Deferred contract incentive1,786 2,976
Other non-current obligations3,549 5,166
Total other non-current obligations $ 30,148 $ 32,512

Other Non-Current Obligations_2

Other Non-Current Obligations - Schedule of Other Non-Current Obligations Footnotes (Detail)6 Months Ended
Aug. 03, 2019
Other Liabilities Noncurrent [Abstract]
Incentive payment service agreement period5 years

Leases - Additional Information

Leases - Additional Information (Detail)6 Months Ended
Aug. 03, 2019
Lessee, Lease, Description
Renewal options, operating leasetrue
Renewal options, finance leasetrue
Renewal term, operating lease25 years
Renewal term, finance lease25 years
Minimum
Lessee, Lease, Description
Initial lease terms, operating lease10 years
Initial lease terms, finance lease10 years
Maximum
Lessee, Lease, Description
Initial lease terms, operating lease15 years
Initial lease terms, finance lease15 years
Finance leased Equipment | Minimum
Lessee, Lease, Description
Initial lease terms, operating lease3 years
Initial lease terms, finance lease3 years
Finance leased Equipment | Maximum
Lessee, Lease, Description
Initial lease terms, operating lease7 years
Initial lease terms, finance lease7 years

Leases - Lease Costs (Detail)

Leases - Lease Costs (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Lease, Cost [Abstract]
Operating lease cost $ 23,259 $ 22,743 $ 42,376 $ 44,089
Finance lease costs, Amortization of leased assets9,235 6,441 18,087 12,340
Finance lease costs, Interest on lease liabilities5,672 3,319 11,186 6,411
Sublease income(1,507)(2,261)(4,789)(3,271)
Total lease cost-net $ 36,659 $ 30,242 $ 66,860 $ 59,569

Leases - Lease Right-of-Use Ass

Leases - Lease Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Assets and Liabilities, Lessee [Abstract]
Operating leases $ 421,001 $ 440,504
Classification of operating leases right of use assetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAsset
Finance leases $ 650,699 $ 646,875
Classification of finance leasesus-gaap:PropertyPlantAndEquipmentNetus-gaap:PropertyPlantAndEquipmentNet
Total lease right-of-use assets $ 1,071,700 $ 1,087,379
Operating leases, current $ 57,162 $ 66,249
Classification of operating leases currentus-gaap:OperatingLeaseLiabilityCurrentus-gaap:OperatingLeaseLiabilityCurrent
Finance leases, current $ 8,127 $ 9,184
Classification of finance leases, currentus-gaap:OtherLiabilitiesCurrentus-gaap:OtherLiabilitiesCurrent
Total lease liabilities-current $ 65,289 $ 75,433
Operating leases, noncurrent $ 415,803 $ 437,557
Classification of operating leases noncurrentus-gaap:OperatingLeaseLiabilityNoncurrentus-gaap:OperatingLeaseLiabilityNoncurrent
Finance leases, noncurrent $ 433,591 $ 421,245
Classification of finance leases, noncurrentus-gaap:FinanceLeaseLiabilityNoncurrentus-gaap:FinanceLeaseLiabilityNoncurrent
Total lease liabilities-non-current $ 849,394 $ 858,802
Total lease liabilities914,683 934,235
Finance lease right-of-use assets, accumulated amortization $ 73,300 $ 55,500

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands6 Months Ended
Aug. 03, 2019Feb. 02, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of fiscal 2019 $ 33,456
202078,990
202165,068
202257,226
202353,867
202449,901
Thereafter228,093
Total lease payments566,601
Less-imputed interest(93,636)
Present value of lease liabilities472,965
Finance Lease, Liability, Payment, Due [Abstract]
Remainder of fiscal 201914,014
202033,456
202133,908
202234,385
202335,153
202435,689
Thereafter548,302
Total lease payments734,907
Less-imputed interest(293,189)
Present value of lease liabilities441,718
Operating And Finance Lease Liabilities, Payments, Due [Abstract]
Remainder of fiscal 201947,470
2020112,446
202198,976
202291,611
202389,020
202485,590
Thereafter776,395
Total lease payments1,301,508
Less-imputed interest(386,825)
Present value of lease liabilities914,683 $ 934,235
Legally binding payments for leases signed but not yet commenced369,100
Future commitments under short-term lease agreements $ 1,400
Short-term lease agreements, commitmentstrue

Leases - Supplemental Informati

Leases - Supplemental Information Related to Leases (Detail)Aug. 03, 2019Aug. 04, 2018
Leases [Abstract]
Operating leases, Weighted-average remaining lease term (years)8 years 10 months 24 days9 years 7 months 6 days
Finance leases, Weighted-average remaining lease term (years)18 years 10 months 24 days18 years 4 months 24 days
Operating leases, Weighted-average discount rate3.81%3.74%
Finance leases, Weighted-average discount rate5.26%4.95%

Leases - Other Information Rela

Leases - Other Information Related to Leases (Detail) - USD ($) $ in Thousands6 Months Ended
Aug. 03, 2019Aug. 04, 2018
Leases [Abstract]
Operating Lease, Payments $ (53,670) $ (54,287)
Operating cash flows from finance leases(11,186)(6,411)
Principal payments under finance leases(4,399)(3,567)
Total cash outflows from leases(69,255)(64,265)
Finance leases, Lease right-of-use assets obtained in exchange for lease obligations (non-cash)17,997 27,874
Operating leases, Lease right-of-use assets obtained in exchange for lease obligations (non-cash) $ 13,839 $ 15,024

Convertible Senior Notes - Addi

Convertible Senior Notes - Additional Information (Detail)Mar. 14, 2019USD ($)Jun. 30, 2015USD ($)$ / shares$ / derivativesharesJun. 30, 2019USD ($)sharesJun. 30, 2018USD ($)$ / shares$ / derivativesharesJun. 30, 2015USD ($)$ / shares$ / derivativesharesJun. 30, 2014USD ($)derivative$ / shares$ / derivativesharesAug. 03, 2019USD ($)$ / sharesAug. 04, 2018USD ($)Sep. 30, 2014USD ($)Aug. 03, 2019USD ($)$ / sharesAug. 04, 2018USD ($)Feb. 02, 2019USD ($)Jul. 31, 2015USD ($)
Debt Instrument
Amortization of debt discount $ 22,962,000 $ 17,645,000
(Gain) Loss on extinguishment of debt $ 954,000 $ (917,000)954,000 (917,000)
Total cost of convertible note hedge transactions91,857,000
Cash proceeds from sale of warrants51,021,000
Convertible senior notes due 2023
Debt Instrument
Debt instrument, principal amount335,000,000 335,000,000 $ 335,000,000
Deemed elected combination settlement amount per note to be received upon conversion $ 1,000
Debt instrument, effective interest rate6.35%
Discounts and commissions payable $ 1,700,000 73,152,000 73,152,000 81,311,000
Third party offering costs $ 4,600,000
Amortization of debt issuance costs300,000 100,000 500,000 100,000
Amortization of debt discount4,100,000 1,800,000 $ 8,200,000 1,800,000
Warrants sold to purchase common stock | shares1,700,000
Cash proceeds from sale of warrants $ 51,000,000
Warrants price per share | $ / shares $ 309.84
Convertible senior notes due 2023 | Convertible bond hedge and warrant transactions
Debt Instrument
Convertible note hedge, number of shares1,700,000
Convertible note hedge, price per share | $ / derivative193.65
Convertible note hedge, descriptionthe Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 1.7 million shares of its common stock at a price of approximately $193.65 per share.
Total cost of convertible note hedge transactions $ 91,900,000
Warrants price per share | $ / shares $ 309.84
Deferred tax liability22,300,000 $ 22,300,000
Deferred tax asset $ 22,500,000 $ 22,500,000
Convertible senior notes due 2023 | Convertible bond hedge and warrant transactions | Warrants Subject to Certain Adjustment Mechanisms | Maximum
Debt Instrument
Warrants sold to purchase common stock | shares3,500,000
Convertible senior notes due 2023 | Convertible debt instrument conversion period one
Debt Instrument
Debt instrument, convertible trading days20
Debt instrument, convertible consecutive trading days30
Debt instrument, convertible percentage of stock price130.00%
Convertible senior notes due 2023 | Convertible debt instrument conversion period two
Debt Instrument
Debt instrument, convertible trading days5
Debt instrument, convertible consecutive trading days10
Debt instrument, convertible percentage of stock price98.00%
Convertible senior notes due 2023 | Convertible debt instrument conversion period three
Debt Instrument
Debt instrument, convertible earliest dateMar. 15,
2023
Convertible senior notes due 2023 | Common Stock
Debt Instrument
Debt instrument, initial conversion rate5.1640
Debt instrument, conversion principal amount $ 1,000
Conversion price per share | $ / shares $ 193.65 $ 193.65 $ 193.65
Debt instrument, conversion descriptionThe initial conversion rate applicable to the 2023 Notes is 5.1640 shares of common stock per $1,000 principal amount of 2023 Notes, which is equivalent to an initial conversion price of approximately $193.65 per share.
Convertible senior notes due 2020
Debt Instrument
Debt instrument, principal amount $ 300,000,000 $ 300,000,000 300,000,000
Deemed elected combination settlement amount per note to be received upon conversion $ 1,000 $ 1,000
Debt instrument, effective interest rate6.47%6.47%
Discounts and commissions payable $ 3,800,000 $ 3,800,000 18,132,000 18,132,000 27,081,000
Third party offering costs $ 2,300,000 $ 2,300,000
Amortization of debt issuance costs300,000 300,000 600,000 500,000
Amortization of debt discount4,500,000 4,200,000 $ 8,900,000 8,400,000
Warrants sold to purchase common stock | shares2,500,000 2,500,000
Cash proceeds from sale of warrants $ 30,400,000
Warrants price per share | $ / shares $ 189 $ 189
Convertible senior notes due 2020 | Convertible bond hedge and warrant transactions
Debt Instrument
Conversion price per share | $ / shares $ 189 $ 189
Convertible note hedge, price per share | $ / derivative118.13118.13
Convertible note hedge, descriptionthe Company entered into convertible note hedge transactions whereby the Company has the option to purchase a total of approximately 2.5 million shares of its common stock at a price of approximately $118.13 per share.
Total cost of convertible note hedge transactions $ 68,300,000
Deferred tax liability32,800,000 $ 32,800,000
Deferred tax asset $ 26,600,000 $ 26,600,000
Convertible senior notes due 2020 | Convertible bond hedge and warrant transactions | Warrants Subject to Certain Adjustment Mechanisms | Maximum
Debt Instrument
Warrants sold to purchase common stock | shares5,100,000 5,100,000
Convertible senior notes due 2020 | Convertible debt instrument conversion period one
Debt Instrument
Debt instrument, convertible trading days20
Debt instrument, convertible consecutive trading days30
Debt instrument, convertible percentage of stock price130.00%
Convertible senior notes due 2020 | Convertible debt instrument conversion period two
Debt Instrument
Debt instrument, convertible trading days5
Debt instrument, convertible consecutive trading days10
Debt instrument, convertible percentage of stock price98.00%
Convertible senior notes due 2020 | Common Stock
Debt Instrument
Debt instrument, principal amount $ 1,000 $ 1,000
Debt instrument, initial conversion rate8.4656
Conversion price per share | $ / shares $ 118.13 $ 118.13 $ 118.13 $ 118.13
Debt instrument, conversion descriptionThe initial conversion rate applicable to the 2020 Notes is 8.4656 shares of common stock per $1,000 principal amount of 2020 Notes, which is equivalent to an initial conversion price of approximately $118.13 per share.
Convertible senior notes due 2019
Debt Instrument
Debt instrument, principal amount350,000,000
Debt instrument, convertible earliest dateMar. 15,
2019
Debt instrument, effective interest rate4.51%
Discounts and commissions payable $ 4,400,000 $ 5,854,000
Third party offering costs $ 1,000,000
Amortization of debt issuance costs $ 200,000 300,000 $ 400,000 500,000
Amortization of debt discount2,000,000 $ 3,800,000 5,900,000 $ 7,500,000
Aggregate principal amount $ 350,000,000
Debt amount settled in cash $ 349,000,000
Shares issued upon conversion | shares42
(Gain) Loss on extinguishment of debt $ 1,000,000
Convertible note hedge, number of shares | derivative3,000,000
Cash proceeds from sale of warrants $ 40,400,000
Deferred tax liability0 0
Deferred tax asset0 $ 0
Convertible senior notes due 2019 | Convertible bond hedge and warrant transactions
Debt Instrument
Convertible note hedge, number of shares3,000,000
Convertible note hedge, price per share | $ / derivative116.09
Convertible note hedge, descriptionthe Company entered into convertible note hedge transactions whereby the Company had the option to purchase a total of approximately 3.0 million shares of its common stock at a price of approximately $116.09 per share.
Total cost of convertible note hedge transactions $ 73,300,000
Warrants price per share | $ / shares $ 171.98
Deferred tax liability27,500,000 $ 27,500,000
Deferred tax asset $ 28,600,000 $ 28,600,000
Conversion price per share, two | $ / shares $ 171.98
Convertible senior notes due 2019 | Convertible bond hedge and warrant transactions | Warrants Subject to Certain Adjustment Mechanisms | Maximum
Debt Instrument
Warrants sold to purchase common stock | shares6,000,000
Convertible senior notes due 2019 | Convertible debt instrument conversion period one
Debt Instrument
Debt instrument, convertible trading days20
Debt instrument, convertible consecutive trading days30
Debt instrument, convertible percentage of stock price130.00%
Convertible senior notes due 2019 | Convertible debt instrument conversion period two
Debt Instrument
Debt instrument, convertible trading days5
Debt instrument, convertible consecutive trading days10
Debt instrument, convertible percentage of stock price98.00%
Convertible senior notes due 2019 | Common Stock
Debt Instrument
Debt instrument, initial conversion rate8.6143
Debt instrument, conversion principal amount $ 1,000
Conversion price per share | $ / shares $ 116.09 $ 116.09 $ 116.09
Private Placement | Convertible senior notes due 2023
Debt Instrument
Debt instrument, principal amount $ 300,000,000
Debt instrument, interest rate0.00%
Debt instrument, maturity dateJun. 15,
2023
Private Placement | Convertible senior notes due 2020
Debt Instrument
Debt instrument, principal amount $ 250,000,000 $ 250,000,000
Debt instrument, interest rate0.00%0.00%
Debt instrument, maturity dateJul. 15,
2020
Private Placement | Convertible senior notes due 2019
Debt Instrument
Debt instrument, principal amount $ 350,000,000
Debt instrument, interest rate0.00%
Debt instrument, maturity dateJun. 15,
2019
Over Allotment Option in Private Placement | Convertible senior notes due 2023
Debt Instrument
Debt instrument, principal amount $ 35,000,000
Exercise of Over Allotment Option in Private Placement | Convertible senior notes due 2020
Debt Instrument
Debt instrument, principal amount $ 50,000,000

Convertible Senior Notes - Carr

Convertible Senior Notes - Carrying Values of Notes Excluding the Discounts upon Original Issuance and Third Party Offering Costs (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019Jun. 30, 2018Jun. 30, 2015
Convertible senior notes due 2023
Liability component
Principal $ 335,000 $ 335,000
Less: Debt discount(73,152)(81,311) $ (1,700)
Net carrying amount261,848 253,689
Equity component90,990 90,990
Convertible senior notes due 2020
Liability component
Principal300,000 300,000
Less: Debt discount(18,132)(27,081) $ (3,800)
Net carrying amount281,868 272,919
Equity component $ 84,003 $ 84,003

Convertible Senior Notes - Ca_2

Convertible Senior Notes - Carrying Value of Notes Excluding the Discounts and Commissions Payable to the Initial Purchasers and Third Party Offering Costs (Detail) - Convertible senior notes due 2019 - USD ($) $ in ThousandsFeb. 02, 2019Jun. 30, 2014
Liability component
Principal $ 350,000
Less: Debt discount(5,854) $ (4,400)
Net carrying amount344,146
Equity component $ 70,482

Credit Facilities - Schedule of

Credit Facilities - Schedule of Credit Facilities (Detail) - USD ($) $ in ThousandsAug. 03, 2019Apr. 04, 2019Feb. 02, 2019
Line of Credit Facility
Credit facilities, Outstanding Amount $ 529,007 $ 57,500
Credit facilities, Unamortized Debt Issuance Costs(4,032)
Credit facilities, Net Carrying Amount524,975 57,500
Asset based credit facility
Line of Credit Facility
Credit facilities, Outstanding Amount145,000 57,500
Credit facilities, Net Carrying Amount145,000 $ 57,500
FILO term loan
Line of Credit Facility
Credit facilities, Outstanding Amount120,000 $ 120,000
Credit facilities, Unamortized Debt Issuance Costs(914)
Credit facilities, Net Carrying Amount119,086
Second lien term loan
Line of Credit Facility
Credit facilities, Outstanding Amount200,000
Credit facilities, Unamortized Debt Issuance Costs(2,738)
Credit facilities, Net Carrying Amount197,262
Equipment promissory notes
Line of Credit Facility
Credit facilities, Outstanding Amount64,007
Credit facilities, Unamortized Debt Issuance Costs(380)
Credit facilities, Net Carrying Amount $ 63,627

Credit Facilities - Additional

Credit Facilities - Additional Information (Detail) - USD ($) $ in ThousandsApr. 10, 2019Apr. 04, 2019Jun. 28, 2017Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018May 04, 2019Feb. 02, 2019
Line of Credit Facility
Outstanding amount $ 529,007 $ 529,007 $ 57,500
Revolving line of credit borrowing base, net of reserved amount for upcoming repayment, 2019 notes $ 40,000
Minimum percentage of aggregate revolving commitments10.00%
Minimum fixed charge coverage ratio1
(Gain) loss on extinguishment of debt(954) $ 917 (954) $ 917
Outstanding revolving line of credit524,975 $ 524,975 $ 57,500
Credit Agreement
Line of Credit Facility
Agreement, dateJun. 28,
2017
Minimum leverage ratio1
Maximum leverage ratio3.50
EBITDA to debt service coverage ratio1
Equipment Loan Facility
Line of Credit Facility
Aggregate amounts outstanding64,000 $ 64,000
Equipment Loan Facility | Maximum
Line of Credit Facility
Maturity term4 years
Equipment Loan Facility | Minimum
Line of Credit Facility
Maturity term3 years
Equipment Loan Facility | Other current liabilities
Line of Credit Facility
Aggregate amounts outstanding $ 21,500
Equipment Loan Facility | Other non-current obligations
Line of Credit Facility
Aggregate amounts outstanding42,500
Revolving Credit Facility
Line of Credit Facility
Availability under the revolving line of credit254,600 $ 254,600
Outstanding revolving line of credit145,000 145,000
Outstanding letters of credit $ 12,800
Revolving Credit Facility | Credit Agreement | Scenario, Plan Subject to Satisfaction of Conditions
Line of Credit Facility
Increase in revolving line of credit $ 200,000
Revolving Credit Facility | Credit Agreement | Maximum
Line of Credit Facility
Availability under the revolving line of credit600,000
Revolving Credit Facility | Credit Agreement | Maximum | Scenario, Plan Subject to Satisfaction of Conditions
Line of Credit Facility
Line of credit800,000
Revolving Credit Facility | Credit Agreement | Minimum
Line of Credit Facility
Line of credit600,000
Revolving Credit Facility | Credit Agreement | Restoration Hardware Canada, Inc.
Line of Credit Facility
Availability under the revolving line of credit10,000
FILO term loan
Line of Credit Facility
Outstanding amount $ 120,000 120,000 120,000
Interest rate greater than interest rate under the revolving credit facility1.25%
Outstanding revolving line of credit119,086 119,086
LILO Term Loan Facility | Credit Agreement
Line of Credit Facility
Line of credit facility, maximum borrowing capacity $ 80,000
Line of credit facility, maturity dateJun. 28,
2022
Second lien term loan
Line of Credit Facility
Availability under the revolving line of credit0 $ 0
Line of credit facility, maximum borrowing capacity $ 200,000
Line of credit facility, maturity dateApr. 9,
2024
Outstanding amount200,000 $ 200,000
Outstanding revolving line of credit $ 197,262 $ 197,262
Interest rate descriptionannual rate generally based on the London Inter-bank Offered Rate (“LIBOR”) plus 6.50%
Debt instrument, basis spread on variable rate6.50%
Variable interest rate descriptionone-month LIBOR plus 6.50%
Prepayment premium prepaid during the first year after the effective date of agreement2.00%
Prepayment premium prepaid during the second year after the effective date of agreement1.00%

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Value and Carrying Value of 2019, 2020 and 2023 Notes (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Convertible senior notes due 2019
Fair Value Balance Sheet Grouping Financial Statement Captions
Convertible senior notes, Fair Value $ 334,756
Convertible senior notes, Carrying Value344,146
Convertible senior notes due 2020
Fair Value Balance Sheet Grouping Financial Statement Captions
Convertible senior notes, Fair Value $ 282,338 260,258
Convertible senior notes, Carrying Value281,868 272,919
Convertible senior notes due 2023
Fair Value Balance Sheet Grouping Financial Statement Captions
Convertible senior notes, Fair Value263,595 230,684
Convertible senior notes, Carrying Value $ 261,848 $ 253,689

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018Feb. 02, 2019
Income Tax Disclosure [Abstract]
Income tax expense $ 16,665 $ 2,533 $ 28,458 $ 10,121
Effective income tax rate20.70%3.90%22.20%10.30%
Unrecognized tax benefits $ 8,600 $ 8,600 $ 8,500
Tax expense and the effective tax rate, if recognized7,400 7,400 $ 7,300
Exposures related to unrecognized tax benefits $ 400 $ 400
Period of unrecognized tax benefits change12 months

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Weighted-Average Shares Used for Net Income per Share (Detail) - shares3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Earnings Per Share [Abstract]
Weighted-average shares-basic18,465,876 21,925,702 19,221,367 21,735,364
Effect of dilutive stock-based awards3,858,236 5,158,591 4,165,391 4,421,897
Effect of dilutive convertible senior notes[1]412,268 242,292 206,134
Weighted-average shares-diluted22,324,112 27,496,561 23,629,050 26,363,395
[1]The 2019 Notes, 2020 Notes and 2023 Notes have an impact on the Company’s dilutive share count beginning at stock prices of $116.09 per share, $118.13 per share and $193.65 per share, respectively

Net Income Per Share - Schedu_2

Net Income Per Share - Schedule of Weighted-Average Shares Used for Net Income per Share Footnotes (Detail) - Common Stock - $ / sharesAug. 03, 2019Jun. 30, 2018Jun. 30, 2015Jun. 30, 2014
Convertible senior notes due 2019
Earnings Per Share Diluted
Conversion price per share $ 116.09 $ 116.09
Convertible senior notes due 2020
Earnings Per Share Diluted
Conversion price per share118.13 $ 118.13
Convertible senior notes due 2023
Earnings Per Share Diluted
Conversion price per share $ 193.65 $ 193.65

Net Income Per Share - Anti-Dil

Net Income Per Share - Anti-Dilutive Securities Excluded from Diluted Net Income per Share (Detail) - shares3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share
Options and restricted stock units were excluded from calculation of diluted net earnings share717,627 209,441 590,567 353,228
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Options and restricted stock units were excluded from calculation of diluted net earnings share717,627 209,441 590,567 347,978
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share
Options and restricted stock units were excluded from calculation of diluted net earnings share5,250

Share Repurchases - Additional

Share Repurchases - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions3 Months Ended6 Months Ended12 Months Ended
Aug. 03, 2019May 04, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018Feb. 02, 2019Oct. 10, 2018
Share Repurchase Program and Equity Plans
Shares of common stock purchased under repurchase program $ 250,032,000 $ 243,000
Aggregate unpaid principal amount of notes payable for share repurchases $ 18,741,000 18,741,000 $ 18,741,000
Fiscal 2018 $700 million repurchase program
Share Repurchase Program and Equity Plans
Shares of common stock purchased under repurchase program, shares2.2
Shares of common stock purchased at an average price per share under repurchase program $ 115.36
Shares of common stock purchased under repurchase program $ 250,000,000
Amount of shares available under repurchase program450,000,000 450,000,000
Share repurchases under equity plans
Share Repurchase Program and Equity Plans
Aggregate unpaid principal amount of notes payable for share repurchases18,700,000 18,700,000 19,600,000
Interest expense related to notes payable for share repurchases300,000 $ 300,000 500,000 $ 500,000
Share repurchases under equity plans | Other current liabilities
Share Repurchase Program and Equity Plans
Aggregate unpaid principal amount of notes payable for share repurchases18,700,000 18,700,000 900,000
Share repurchases under equity plans | Other non-current obligations
Share Repurchase Program and Equity Plans
Aggregate unpaid principal amount of notes payable for share repurchases18,700,000
Board of Directors (CEO) | Fiscal 2018 $700 million repurchase program
Share Repurchase Program and Equity Plans
Share repurchase250,000,000
Board of Directors (CEO) | Maximum | Fiscal 2018 $700 million repurchase program
Share Repurchase Program and Equity Plans
Share repurchase program authorized amount $ 700,000,000
Director | Share repurchases under equity plans
Share Repurchase Program and Equity Plans
Aggregate unpaid principal amount of notes payable for share repurchases $ 15,500,000 $ 15,500,000 $ 15,500,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018Feb. 02, 2019
Share Based Compensation Arrangement By Share Based Payment Award
Stock-based compensation expense $ 5,300,000 $ 6,100,000 $ 10,993,000 $ 14,092,000
Stock-based compensation cost capitalized0 0
Rollover units and profit interests2,850,000 2,850,000 $ 2,637,000
Selling, general and administrative expenses190,977,000 186,521,000 $ 355,158,000 347,707,000
Design Investors WW Acquisition Company, LLC | Profit interests
Share Based Compensation Arrangement By Share Based Payment Award
Profit interest expected life5 years
Selling, general and administrative expenses100,000 $ 100,000 $ 200,000 $ 200,000
Design Investors WW Acquisition Company, LLC | Profit interests | Other non-current obligations
Share Based Compensation Arrangement By Share Based Payment Award
Liability associated with the profit interests1,400,000 1,400,000 1,100,000
Appreciation rights | Design Investors WW Acquisition Company, LLC
Share Based Compensation Arrangement By Share Based Payment Award
Rollover units and profit interests $ 1,500,000 $ 1,500,000 $ 1,500,000
2012 Stock Incentive Plan and 2012 Stock Option Plan [Member] | Stock Options
Share Based Compensation Arrangement By Share Based Payment Award
Outstanding shares7,611,816 7,611,816
Options outstanding, weighted-average exercise price per share $ 56.68 $ 56.68
Numbers of options vested6,178,614
Vested weighted-average exercise price per share $ 52.15
Aggregate intrinsic value of options outstanding $ 610,800,000 $ 610,800,000
Aggregate intrinsic value of options vested or expected to vest587,600,000 587,600,000
Aggregate intrinsic value of options exercisable521,800,000 $ 521,800,000
Weighted-average remaining contractual life of options exercisable4 years 8 months 1 day
Unrecognized compensation expense related to unvested options $ 38,300,000 $ 38,300,000
Unrecognized compensation expense with weighted-average period3 years 6 months 10 days
2012 Stock Incentive Plan and 2012 Stock Option Plan [Member] | Restricted stock and restricted stock unit
Share Based Compensation Arrangement By Share Based Payment Award
Unrecognized compensation expense with weighted-average period2 years
Outstanding shares232,774 232,774
Restricted stock awards outstanding with weighted-average grant date fair value per share $ 49.53 $ 49.53
Vested restricted stock unit139,754 164,889
Vested weighted-average grant date fair value $ 60.99 $ 59.84
Unrecognized compensation expense related to unvested options $ 7,800,000 $ 7,800,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)Mar. 21, 2019Aug. 03, 2019Feb. 02, 2019
Commitments And Contingencies Disclosure [Abstract]
Material off balance sheet commitments $ 0
Aggregate settlement amount $ 50,000,000
Provision for legal settlement and unpaid legal fees50,171,000 $ 50,000,000
Insurance recovery receivable $ 50,171,000 $ 50,000,000

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)3 Months Ended6 Months Ended
Aug. 03, 2019storecustomerAug. 04, 2018customerAug. 03, 2019storecustomersegmentAug. 04, 2018customer
Segment Reporting Information
Number of operating segments | segment2
Number of outlet stores40 40
Number of customers accounted for more than 10% of Company's revenues | customer0 0 0 0
Sales | Customer concentration risk
Segment Reporting Information
Portion of specified customers portion in total revenues10.00%10.00%10.00%10.00%
Canada
Segment Reporting Information
Number of retail stores4 4
Number of outlet stores2 2
U.K
Segment Reporting Information
Number of retail stores1 1

Segment Reporting - Summary of

Segment Reporting - Summary of Statements of Operations Metrics Reviewed by CODM to Evaluate Performance Internally or As required under ASC 280 - Segment Reporting (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019May 04, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Segment Reporting Information
Net revenues $ 706,514 $ 706,514 $ 640,798 $ 1,304,935 $ 1,198,204
Gross profit $ 294,958 294,958 268,344 527,772 477,677
Depreciation and amortization25,321 21,354 52,510 41,939
RH Segment
Segment Reporting Information
Net revenues672,328 607,604 1,236,034 1,133,611
Gross profit280,469 255,505 498,412 451,211
Depreciation and amortization24,170 20,236 50,174 39,709
Waterworks
Segment Reporting Information
Net revenues34,186 33,194 68,901 64,593
Gross profit14,489 12,839 29,360 26,466
Depreciation and amortization $ 1,151 $ 1,118 $ 2,336 $ 2,230

Segment Reporting - Summary o_2

Segment Reporting - Summary of Balance Sheet Metrics as Required Under ASC 280 - Segment Reporting (Detail) - USD ($) $ in ThousandsAug. 03, 2019Feb. 02, 2019
Segment Reporting Information
Goodwill $ 124,370 $ 124,379
Trademarks and domain names86,022 86,022
Total assets2,387,808 2,423,018
RH Segment
Segment Reporting Information
Goodwill124,370 124,379
Trademarks and domain names48,563 48,563
Total assets2,240,904 2,273,951
Waterworks
Segment Reporting Information
Trademarks and domain names37,459 37,459
Total assets $ 146,904 $ 149,067

Segment Reporting - Summary o_3

Segment Reporting - Summary of Balance Sheet Metrics as Required Under ASC 280 - Segment Reporting Footnotes (Detail) - Waterworks - USD ($) $ in Millions12 Months Ended24 Months Ended
Feb. 02, 2019Feb. 03, 2018Feb. 02, 2019
Segment Reporting Information
Goodwill impairment $ 17.4 $ 33.7 $ 51.1
Tradename impairment charge $ 14.6

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Operating Income and Income Before Income Taxes (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Segment Reporting Information
Income from operations $ 103,981 $ 81,823 $ 172,614 $ 129,970
Asset impairments and change in useful lives(2,545)(6,021)
Recall accrual320 1,064 1,935 1,318
Legal settlements1,193 7,204 1,193 5,289
Reorganization related costs(1,721)(1,721)
Impact of inventory step-up(190)(380)
Reversal of loss on asset disposal840
Interest expense-net24,513 15,467 45,631 30,565
(Gain) loss on extinguishment of debt(954)917 (954)917
Income before income taxes80,422 65,439 127,937 98,488
Operating segments | RH Segment
Segment Reporting Information
Income from operations104,093 75,804 173,493 124,852
Operating segments | Waterworks
Segment Reporting Information
Income from operations $ 920 $ (338) $ 2,014 $ (228)

Segment Reporting - Net Revenue

Segment Reporting - Net Revenues (Detail) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Aug. 03, 2019May 04, 2019Aug. 04, 2018Aug. 03, 2019Aug. 04, 2018
Segment Reporting Information
Total net revenues $ 706,514 $ 706,514 $ 640,798 $ 1,304,935 $ 1,198,204
Furniture
Segment Reporting Information
Total net revenues485,639 430,196 882,337 782,842
Non-furniture
Segment Reporting Information
Total net revenues $ 220,875 $ 210,602 $ 422,598 $ 415,362