Apr. 21 at 12:07 AM
$RH The actual ncrease in Cash in the bank for the FYE 1/31/26, was barely 10.7 Mil.
Why the
$252.4M figure is "Artificial"
The only reason the Operating Cash Flow (and thus the FCF) looked so high (
$452M) is because RH aggressively liquidated inventory. They turned
$200M+ of products into cash.
If they hadn't sold off that inventory, the Operating Cash Flow would have been closer to
$250M, and after paying for CapEx (
$199M), the Free Cash Flow would have been nearly zero—leaving them with a massive cash deficit once the
$217M interest bill came due.
In short: You've identified the "leaky bucket." RH is generating cash from its operations and inventory sales, but almost every dollar of that "Free Cash Flow" is being siphoned off to pay for the
$2.38 billion debt load.
