RH Announces $700 Million Share Repurchase Authorization
October 11 2018 - 8:55AM
Business Wire
RH (NYSE:RH) today announced that its Board of Directors has
authorized a common share repurchase program of up to $700
million.
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.
RH anticipates that the repurchase of shares under this program
could be funded with a combination of existing cash, cash flow,
borrowings under existing credit facilities, and proceeds from
incremental borrowing arrangements. As of the end of the second
quarter ended August 4, 2018, the Company had approximately $22
million in cash and cash equivalents and had no outstanding
borrowings on its line of credit of up to $600 million.
Gary Friedman, Chairman and Chief Executive Officer, commented,
“We continue to believe our shares are undervalued and this new
repurchase program reflects our confidence in the outlook for our
business and continued improvements in our operating model. We
believe that this capital allocation strategy represents an
opportunity to create value for our long-term shareholders.”
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 statements
relating to 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 the outlook
for our business and continued improvements in 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 “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; our ability to
leverage Waterworks; 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 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 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 and other similar issues, as
well as those 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. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181011005424/en/
RHCammeron McLaughlinSVP, Investor Relations &
Strategy415-945-4998cmclaughlin@rh.com
RH (NYSE:RH)
Historical Stock Chart
From Aug 2024 to Sep 2024
RH (NYSE:RH)
Historical Stock Chart
From Sep 2023 to Sep 2024