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RH Announces the Temporary Closure of Our Galleries, Restaurants and Outlets in North America

CORTE MADERA, Calif.--(BUSINESS WIRE)-- RH (NYSE: RH)

March 17, 2020

To Our People, Partners and Customers,

First let us say thank you. Thank you to the nurses, doctors, hospitals and healthcare providers around the world who are tirelessly fighting the spread of COVID-19, putting their own health at risk to protect ours. Thank you to the truckers, stockers, clerks, checkers and baggers that are hauling the loads, filling the shelves, ringing the registers, and bagging our purchases, during what must feel like the rush of frantic last minute Christmas Eve shoppers every day in every grocery store and pharmacy in North America. Thank you to the kitchen teams, servers, hosts, dishwashers, bartenders and baristas who are cooking, cleaning, serving and steaming while practicing social distancing with a warm smile and welcoming heart. Thank you to the drivers and delivery teams from FedEx, UPS, USPS, DHL and HDLs – Grubhub, DoorDash and Postmates, who are delightfully arriving at our doorsteps. Thank you to the Uber, Lyft, taxi and bus drivers who are transporting us to dining rooms and emergency rooms. Thank you to the men and women in uniform working to serve and protect us in our local communities and around the world. Thank you to the sanitation, facilities and janitorial teams who are picking up our garbage, cleaning, mopping, wiping and disinfecting everywhere we sit and everything we touch keeping the coronavirus at bay. And thank you to the men and women of Team RH who have remained ready and willing to serve our guests during one of the most unsettling and unpredictable times of our lives.

As you know, select RH Galleries, Restaurants and Outlets have been ordered to close by local governments and we have made the difficult decision today to close our remaining physical locations from March 18th through March 27th to do our part in the fight against the continued spread of the coronavirus. We do so knowing the brave souls mentioned above will continue to serve and risk their health to protect ours, and we feel tremendous respect and eternal gratitude for their services. Our teams remain ready to assist you in every way we can during this period. We can set up virtual design appointments using FaceTime, Hangouts, Zoom or by phone. Just call your local Gallery and you will be forwarded to one of our designers, or request a design consultation at RH.com. We are able to help answer questions regarding products or projects, pick colors, and place orders. Of course, our websites remain open 24/7 for browsing, shopping, or pre-sleep dreaming.

Our Galleries, Restaurants and Outlets will be open until 7pm this evening, and our team members will continue to be paid through this closure period.

In the meantime, we will continue to scrub, polish and disinfect our Galleries, Restaurants, Outlets and Facilities to prepare for your return.

At RH, we believe there are moments in life that should be defined by our vision, values, hopes and dreams, not by a virus.

Stay safe, and as Martin Luther King Jr. so eloquently said, “Keep hope alive.”

Carpe Diem,

Gary
Chairman & CEO

About RH

RH (NYSE: RH) is a curator of design, taste and style in the luxury lifestyle market. The Company offers its collections through its retail galleries across North America, the Company’s multiple 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. 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 “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 (i) risks related to the duration and severity of the COVID-19 virus outbreak and its impact on our business specifically or economic conditions more broadly, including with respect to (a) the potential weakening of demand for our products and the disruptions to our supply chain, (b) the effects of shelter-in-place orders on customer demand, and (c) the impact of COVID-19 on the U.S. and global economies and financial markets, all of which could significantly harm our results of operations and financial condition, (ii) 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 most recent Form 10-K and Form 10-Q 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, and (iii) risks related to our dependence on key personnel and any changes in our ability to retain key personnel; successful implementation of our growth strategy; risks related to the number of new business initiatives we are undertaking; successful implementation of our growth strategy including our real estate transformation and the number of new Gallery locations that we seek to open and the timing of openings; uncertainties in the current performance of our business including a range of risks related to our operations as well as external economic factors; general economic conditions and the housing market as well as the impact of economic conditions on consumer confidence and spending; changes in customer demand for our products; our ability to anticipate consumer preferences and buying trends, and maintaining our brand promise to customers; decisions concerning the allocation of capital; factors affecting our outstanding convertible senior notes or other forms of our 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; 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; our ability to employ reasonable and appropriate security measures to protect personal information that we collect; our ability to support our growth with appropriate information technology systems; 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 including risks related to tariffs, the countermeasures and mitigation steps that we adopt in response to tariffs and other similar issues. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Allison Malkin
203-682-8225
allison.malkin@icrinc.com

Source: RH

Released March 17, 2020