RH Announces $700 Million Share Repurchase Authorization

Company Announces Completion of Previous $300 Million Share
Repurchase Program

CORTE MADERA, Calif.–(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 on a discretionary basis from time to time
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 one or more accelerated stock repurchase
programs including through privately-negotiated arrangements in which a
portion of the share repurchase program is committed in advance through
a financial intermediary and/or in transactions involving 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 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 first quarter ended April 29, 2017,
the Company had approximately $80 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 based on the strength
of our balance sheet, coupled with the current and long-term outlook for
our business, an opportunity exists to create value for our long-term
shareholders.”

RH completed its previous share repurchase program during the first
quarter of fiscal 2017 in the amount of $300 million pursuant to which
it purchased 7.85 million shares.

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, 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
stock repurchases including the timing, amount or sources of funds, our
belief that our shares are undervalued and an opportunity exists to
create value for our long-term shareholders, 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, our ability to retain key
personnel; successful implementation of our growth strategy; our ability
to take advantage of the transaction with 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; factors affecting our
outstanding convertible senior notes; our ability to anticipate consumer
preferences and buying trends, and maintaining 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 “conflict
minerals” compliance and its impact on sourcing, if any, 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 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.restorationhardware.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.

Contacts

RH
Cammeron McLaughlin, 415-945-4998
SVP, Investor Relations
and Strategy
cmclaughlin@rh.com