RH Earnings Per Share Disclosure
NOTE 14—NET INCOME PER SHARE
The weighted-average shares used for net income per share were as follows:
| YEAR ENDED | ||||||||
| JANUARY 31, | FEBRUARY 1, | FEBRUARY 3, | ||||||
| | 2026 | | 2025 | | 2024 | |||
Weighted-average shares—basic | 18,753,509 | 18,487,319 | 19,880,576 | ||||||
Effect of dilutive stock-based awards |
| 1,037,742 | 1,383,386 | 1,518,408 | |||||
Effect of dilutive convertible senior notes(1) |
| — | 120,894 | 201,494 | |||||
Weighted-average shares—diluted |
| 19,791,251 |
| 19,991,599 |
| 21,600,478 | |||
| (1) | The dilutive effect of the 2023 Notes and 2024 Notes is calculated under the if-converted method, which assumes share settlement of the entire convertible debt instrument. The 2023 Notes and 2024 Notes matured in June 2023 and September 2024, respectively, and did not have an impact on our diluted share count post-maturity. Refer to Note 11—Credit Facilities and Convertible Senior Notes. |
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:
| YEAR ENDED | ||||||||
| JANUARY 31, | FEBRUARY 1, | FEBRUARY 3, | ||||||
| | 2026 | | 2025 | | 2024 | |||
Options | 2,128,707 | 1,591,655 | 1,316,836 | ||||||
Restricted stock units |
| 8,237 |
| 8,990 |
| 15,313 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 1, 2026 | Showing above |
| 2025 | Apr 2, 2025 | |
| 2024 | Mar 28, 2024 | |
| 2023 | Mar 29, 2023 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.