RH (NYSE:RH) Q3 2023 Earnings Call Transcript December 7, 2023 5:00 PM ET
Company Participants
Allison Malkin - IR
Gary Friedman - Chairman & CEO
Jack Preston - CFO
Conference Call Participants
Simeon Guttman - Morgan Stanley
Steven Zaccone - Citi
Chris Horvers - JPMorgan
Curtis Nagle - Bank of America
Max Rakhlenko - TD Cowen
Steven Forbes - Guggenheim Securities
Michael Lasser - UBS
Jonathan Matuszewski - Jefferies
Seth Basham - Wedbush Securities
Peter Benedict - Baird
Brad Thomas - KeyBanc Capital Markets
Operator
Hello and welcome to the Q3 2023 RH Q&A Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions] I'll now turn the conference over to Alison Malkin. Please go ahead.
Allison Malkin
Thank you. Good afternoon, everyone. Thank you for joining us for our third quarter fiscal 2023 earnings conference call. Joining me today are Gary Friedman, Chairman and Chief Executive Officer, and Jack Preston, Chief Financial Officer.
Before we start, I would like to remind you of our legal disclaimer that we will make certain statements today that are forward-looking within the meaning of the federal securities laws, including statements about the outlook of our business and other matters referenced in our press release issued today. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filing as well as our press release issued today for a more detailed description of the risk factors that may affect our results. Please also note that these forward-looking statements reflect our opinion only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.
Also, during this call, we may discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP to GAAP measures in today's financial results press release. A live broadcast of this call is also available on the Invest Relations section of our website at ir.rh.com.
With that, I'll turn the call over to Gary.
Gary Friedman
Great. Thank you, Allison. Good afternoon, everyone. As we usually do, we'll start with our shareholder letter and open the call to questions. To our people, partners, and shareholders, net revenues of $751 million were at the midpoint of our guidance to the quarter, and adjusted operating margin of 7.3% was slightly below expectations due to higher than anticipated expenses, including international openings, as well as costs related to our pending acquisition of the New York Guesthouse property and unsuccessful efforts to secure the iconic One Ocean Drive Miami Beach location.