RH Announces Increase to Share Repurchase Authorization
June 02 2022 - 4:05PM
Business Wire
RH (NYSE: RH) today announced that its Board of Directors has
authorized an additional $2.0 billion for the purchase of shares of
its outstanding common stock under its common share repurchase
program. Such share repurchase authorization is effective
immediately and is in addition to the previous share repurchase
program which has $450 million remaining.
Gary Friedman, Chairman and Chief Executive Officer, commented,
“We continue to believe our shares are undervalued and this new
repurchase authorization reflects our confidence in the outlook for
our business over time. While there are several well documented
economic headwinds that create short term uncertainty for the home
furnishings sector, our confidence in our long-term strategy and
the strength of our operating model has never been higher. We
believe this $2 billion increase in our share repurchase program
provides us with another opportunity to create value for our long
term shareholders.”
RH anticipates that the repurchase of shares under the share
repurchase program could be funded with a combination of existing
cash, cash flow, borrowings under existing credit facilities, and
proceeds from incremental borrowing arrangements.
RH may purchase shares of common stock through open market
purchases, privately negotiated transactions or other means,
including through Rule 10b5-1 trading plans or the use of other
techniques such as through transactions involving derivatives or
other equity linked instruments and securities including one or
more accelerated share repurchase programs including through
privately-negotiated arrangements in which a portion of the
repurchase program is committed in advance through a financial
intermediary and/or executed in other transactions including
through hedging or derivatives. The timing and amount of any
transactions will be subject to the discretion of RH and may be
based upon market conditions as well as other opportunities that RH
may have for the use or investment of its capital. The repurchase
program has no expiration date, does not require the purchase of
any minimum number of shares or dollar value, and may be
implemented, modified, suspended or discontinued in whole or in
part at any time without further notice.
ABOUT RH
RH (NYSE: RH) is a curator of design, taste and style in the
luxury lifestyle market. The Company offers collections through its
retail galleries, source books, and online at RH.com, RHModern.com,
RHBabyandChild.com, RHTEEN.com and Waterworks.com.
FORWARD-LOOKING STATEMENTS
This Release contains forward-looking statements within the
meaning of the federal securities laws, including, without
limitation, statements relating to our share repurchase program,
any future repurchases of our shares or other transactions under
the repurchase program, including the timing, amount or sources of
funds of any such repurchases, our belief that our shares are
undervalued and an opportunity exists to create value for our
long-term shareholders, our confidence in our long-term strategy
and the strength of our operating model, and any statements or
assumptions underlying any of the foregoing.
You can identify forward-looking statements by the fact that
they do not relate strictly to historical or current facts. These
statements may include words such as “if,” “anticipate,”
“estimate,” “expect,” “project,” “plan,” “intend,” “believe,”
“may,” “will,” “should,” “likely” and other words and terms of
similar meaning in connection with any discussion of the timing or
nature of future events. We cannot assure you that future
developments affecting us will be those that we have anticipated.
Important risks and uncertainties that could cause actual results
to differ materially from our expectations include, among others,
risks related to our dependence on key personnel and any changes in
key personnel; successful implementation of our growth strategy;
uncertainties in the current and long-term performance of our
business including a range of risks related to our operations as
well as external economic factors; general economic conditions and
the impact on consumer confidence and spending; changes in customer
demand for our products; decisions concerning the allocation of
capital including the extent to which we repurchase additional
shares of our common stock which will affect shares outstanding and
EPS; factors affecting our outstanding indebtedness; our ability to
anticipate consumer preferences and buying trends, and maintain our
brand promise to customers; changes in consumer spending based on
weather and other conditions beyond our control; risks related to
the number of new business initiatives we are undertaking including
international expansion, our real estate and Gallery development
strategy and our expansion into new business areas such as
hospitality; strikes and work stoppages affecting port workers and
other industries involved in the transportation of our products;
our ability to obtain our products in a timely fashion or in the
quantities required; risks related to our sourcing and supply chain
including our dependence on imported products produced by foreign
manufacturers and risks related to importation of such products,
risks related to the operations of our vendors, risks related to
tariffs and risks related to the impact of COVID on our business;
and those other risks and uncertainties disclosed under the
sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in RH’s
Annual Report on Form 10-K most recently filed with the Securities
and Exchange Commission, and similar disclosures in subsequent
reports filed with the SEC, which are available on our investor
relations website at ir.rh.com and on the SEC website at
www.sec.gov. You should not place undue reliance on these
forward-looking statements. Any forward-looking statement made by
us in this Release speaks only as of the date on which we make it.
RH expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to such statements to reflect any
change in its expectations with regard thereto or any changes in
the events, conditions or circumstances on which any such statement
is based.
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PRESS CONTACT truthgroup@RH.com
INVESTOR RELATIONS CONTACT Allison Malkin, 203.682.8225,
allison.malkin@icrinc.com
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