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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 2, 2024

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission file number: 001-35720

Graphic

(Exact name of registrant as specified in its charter)

Delaware

    

45-3052669

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification Number)

15 Koch Road
Corte Madera, CA

 

94925

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (415924-1005

Securities registered pursuant to Section 12(b) of the Act:

 

Common Stock, $0.0001 par value

RH

New York Stock Exchange, Inc.

(Title of each class)

(Trading symbol)

(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No  

As of December 6, 2024, 18,602,848 shares of the registrant’s common stock were outstanding.

RH

INDEX TO FORM 10-Q

    

    

Page

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

3

Condensed Consolidated Balance Sheets (Unaudited)
as of November 2, 2024 and February 3, 2024

3

Condensed Consolidated Statements of Income (Loss) (Unaudited)
for the three and nine months ended November 2, 2024 and October 28, 2023

4

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
for the three and nine months ended November 2, 2024 and October 28, 2023

5

Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited)
for the three and nine months ended November 2, 2024 and October 28, 2023

6

Condensed Consolidated Statements of Cash Flows (Unaudited)
for the nine months ended November 2, 2024 and October 28, 2023

8

Notes to Condensed Consolidated Financial Statements (Unaudited)

10

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

50

Item 4.

Controls and Procedures

51

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings

52

Item 1A.

Risk Factors

52

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

53

Item 3.

Defaults Upon Senior Securities

53

Item 4.

Mine Safety Disclosures

53

Item 5.

Other Information

53

Item 6.

Exhibits

54

Signatures

55

2 | 2024 THIRD QUARTER FORM 10-Q

TABLE OF CONTENTS

PART I

ITEM 1.     FINANCIAL STATEMENTS

RH

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

    

NOVEMBER 2,

    

FEBRUARY 3,

2024

2024

(in thousands)

ASSETS

 

  

 

  

Cash and cash equivalents

$

87,012

$

123,688

Accounts receivable—net

 

63,004

 

55,058

Merchandise inventories

 

978,553

 

754,126

Prepaid expense and other current assets

 

149,182

 

169,030

Total current assets

 

1,277,751

 

1,101,902

Property and equipment—net

 

1,797,308

 

1,685,858

Operating lease right-of-use assets

599,836

625,801

Goodwill

 

140,990

 

141,033

Tradenames, trademarks and other intangible assets

 

76,473

 

75,927

Deferred tax assets

 

138,574

 

143,986

Equity method investments

129,561

128,668

Other non-current assets

 

303,729

 

240,722

Total assets

$

4,464,222

$

4,143,897

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

  

Accounts payable and accrued expenses

$

411,832

$

366,585

Deferred revenue and customer deposits

307,922

 

282,812

Convertible senior notes due 2024—net

41,835

Operating lease liabilities

88,221

85,523

Other current liabilities

 

88,292

 

96,113

Total current liabilities

 

896,267

 

872,868

Asset based credit facility

 

190,000

 

Term loan B—net

 

1,907,333

 

1,919,885

Term loan B-2—net

 

468,193

 

468,696

Real estate loans—net

17,519

17,766

Non-current operating lease liabilities

 

559,518

 

576,166

Non-current finance lease liabilities

588,766

566,829

Deferred tax liabilities

8,496

8,442

Other non-current obligations

 

11,139

 

10,639

Total liabilities

4,647,231

4,441,291

Commitments and contingencies (Note 16)

 

 

Stockholders’ deficit:

 

 

  

Preferred stock—$0.0001 par value per share, 10,000,000 shares authorized, no shares issued or outstanding as of November 2, 2024 and February 3, 2024

 

Common stock—$0.0001 par value per share, 180,000,000 shares authorized, 18,600,291 shares issued and outstanding as of November 2, 2024; 18,315,613 shares issued and outstanding as of February 3, 2024

 

2

 

2

Additional paid-in capital

 

340,616

 

287,806

Accumulated other comprehensive income (loss)

 

1,142

 

(1,938)

Accumulated deficit

 

(524,769)

 

(583,264)

Total stockholders’ deficit

(183,009)

(297,394)

Total liabilities and stockholders’ deficit

$

4,464,222

$

4,143,897

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

PART I. FINANCIAL INFORMATION

2024 THIRD QUARTER FORM 10-Q | 3

RH

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

THREE MONTHS ENDED

NINE MONTHS ENDED

NOVEMBER 2,

OCTOBER 28,

NOVEMBER 2,

OCTOBER 28,

    

2024

    

2023 

    

2024

    

2023 

(in thousands, except share and per share amounts)

Net revenues

$

811,732

$

751,225

$

2,368,347

$

2,290,866

Cost of goods sold

 

450,392

410,775

 

1,316,212

1,222,798

Gross profit

 

361,340

 

340,450

 

1,052,135

 

1,068,068

Selling, general and administrative expenses

 

259,872

289,214

799,877

766,252

Income from operations

 

101,468

 

51,236

 

252,258

 

301,816

Other expenses

 

Interest expense—net

57,590

54,640

173,624

138,878

Other expense—net

27

5,305

529

4,466

Total other expenses

 

57,617

59,945

 

174,153

143,344

Income (loss) before income taxes and equity method investments

43,851

(8,709)

 

78,105

158,472

Income tax expense (benefit)

9,256

(9,215)

 

10,882

34,615

Income before equity method investments

34,595

506

67,223

123,857

Share of equity method investments loss—net

1,427

2,693

8,728

7,677

Net income (loss)

$

33,168

$

(2,187)

$

58,495

$

116,180

Weighted-average shares used in computing basic net income (loss) per share

18,534,815

18,371,545

 

18,439,159

 

20,459,241

Basic net income (loss) per share

$

1.79

$

(0.12)

$

3.17

$

5.68

Weighted-average shares used in computing diluted net income (loss) per share

19,981,011

18,371,545

 

19,960,108

 

22,207,813

Diluted net income (loss) per share

$

1.66

$

(0.12)

$

2.93

$

5.23

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

4 | 2024 THIRD QUARTER FORM 10-Q

PART I. FINANCIAL INFORMATION

RH

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

THREE MONTHS ENDED

NINE MONTHS ENDED

NOVEMBER 2,

OCTOBER 28,

NOVEMBER 2,

OCTOBER 28,

2024

    

2023 

    

2024

    

2023 

(in thousands)

Net income (loss)

$

33,168

$

(2,187)

$

58,495

$

116,180

Net gain (loss) from foreign currency translation

(862)

(12,268)

 

3,080

 

(6,593)

Comprehensive income (loss)

$

32,306

$

(14,455)

$

61,575

$

109,587

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

PART I. FINANCIAL INFORMATION

2024 THIRD QUARTER FORM 10-Q | 5

RH

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

THREE MONTHS ENDED

COMMON STOCK

TREASURY STOCK

 

ACCUMULATED

 

RETAINED

 

ADDITIONAL

 

OTHER

 

EARNINGS

TOTAL

 

PAID-IN

 

COMPREHENSIVE

 

(ACCUMULATED

 

 

STOCKHOLDERS'

  

SHARES

  

AMOUNT

  

CAPITAL

  

INCOME (LOSS)

  

DEFICIT)

  

SHARES

  

AMOUNT

  

EQUITY (DEFICIT)

(in thousands, except share amounts)

Balances—August 3, 2024

18,482,697

 

$

2

 

$

321,214

 

$

2,004

 

$

(557,937)

 

 

$

 

$

(234,717)

Stock-based compensation

11,684

11,684

Issuance of restricted stock

8,000

Vested and delivered restricted stock units

192

(37)

(37)

Exercise of stock options

70,281

7,755

7,755

Settlement of convertible senior notes

39,121

Net income

33,168

33,168

Comprehensive loss

(862)

(862)

Balances—November 2, 2024

18,600,291

 

$

2

 

$

340,616

 

$

1,142

 

$

(524,769)

 

 

$

 

$

(183,009)

Balances—July 29, 2023

18,397,853

 

$

2

 

$

261,803

 

$

3,272

 

$

(549,659)

 

 

$

 

$

(284,582)

Stock-based compensation

9,820

9,820

Vested and delivered restricted stock units

196

(30)

(30)

Exercise of stock options

9,426

1,088

1,088

Repurchase of common stock—including excise tax

(189,078)

189,078

(45,055)

(45,055)

Retirement of treasury stock

(1,753)

(43,302)

(189,078)

45,055

Net loss

(2,187)

(2,187)

Comprehensive loss

(12,268)

(12,268)

Balances—October 28, 2023

18,218,397

 

$

2

 

$

270,928

 

$

(8,996)

 

$

(595,148)

 

 

$

 

$

(333,214)

6 | 2024 THIRD QUARTER FORM 10-Q

PART I. FINANCIAL INFORMATION

Table of Contents

RH

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (continued)

(Unaudited)

NINE MONTHS ENDED

COMMON STOCK

TREASURY STOCK

 

ACCUMULATED

 

RETAINED

 

ADDITIONAL

 

OTHER

 

EARNINGS

TOTAL

 

PAID-IN

 

COMPREHENSIVE

 

(ACCUMULATED

 

 

STOCKHOLDERS'

  

SHARES

  

AMOUNT

  

CAPITAL

  

INCOME (LOSS)

  

DEFICIT)

  

SHARES

  

AMOUNT

  

EQUITY (DEFICIT)

(in thousands, except share amounts)

Balances—February 3, 2024

18,315,613

 

$

2

 

$

287,806

 

$

(1,938)

 

$

(583,264)

 

 

$

 

$

(297,394)

Stock-based compensation

33,757

33,757

Issuance of restricted stock

15,829

Vested and delivered restricted stock units

1,009

(188)

(188)

Exercise of stock options

228,719

19,241

19,241

Settlement of convertible senior notes

39,121

Net income

58,495

58,495

Comprehensive income

3,080

3,080

Balances—November 2, 2024

18,600,291

 

$

2

 

$

340,616

 

$

1,142

 

$

(524,769)

 

 

$

 

$

(183,009)

Balances—January 28, 2023

22,045,385

 

$

2

 

$

247,076

 

$

(2,403)

 

$

539,986

 

 

$

 

$

784,661

Stock-based compensation

28,538

28,538

Issuance of restricted stock

2,961

Vested and delivered restricted stock units

1,043

(126)

(126)

Exercise of stock options

55,042

5,816

5,816

Settlement of convertible senior notes

1,931

Repurchase of common stock—including excise tax

(3,887,965)

3,887,965

(1,261,690)

(1,261,690)

Retirement of treasury stock

(10,376)

(1,251,314)

(3,887,965)

1,261,690

Net income

 

 

 

 

116,180

 

 

 

116,180

Comprehensive loss

 

 

 

(6,593)

 

 

 

 

(6,593)

Balances—October 28, 2023

18,218,397

 

$

2

 

$

270,928

 

$

(8,996)

 

$

(595,148)

 

 

$

 

$

(333,214)

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

PART I. FINANCIAL INFORMATION

2024 THIRD QUARTER FORM 10-Q | 7

RH

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

NINE MONTHS ENDED

NOVEMBER 2,

OCTOBER 28,

2024

    

2023

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

58,495

$

116,180

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization

 

96,082

84,360

Non-cash operating lease cost

72,211

62,938

Stock-based compensation expense

 

33,757

28,538

Asset impairments

20,535

7,165

Non-cash finance lease interest expense

23,223

25,920

Deferred income taxes

5,399

40,884

Share of equity method investments loss—net

8,728

7,677

Other non-cash items

 

6,529

5,025

Change in assets and liabilities:

 

Accounts receivable

 

(7,917)

3,676

Merchandise inventories

 

(224,244)

81,166

Prepaid expense and other assets

 

13,084

(12,788)

Landlord assets under construction—net of tenant allowances

 

(33,032)

(18,617)

Accounts payable and accrued expenses

 

43,812

(2,859)

Deferred revenue and customer deposits

 

25,065

(22,735)

Other current liabilities

 

(9,974)

(541)

Current and non-current operating lease liabilities

 

(73,137)

(65,021)

Other non-current obligations

 

(22,747)

(24,796)

Net cash provided by operating activities

 

35,869

 

316,172

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

Capital expenditures

 

(179,897)

(131,840)

Equity method investments

 

(9,620)

(34,321)

Net cash used in investing activities

 

(189,517)

 

(166,161)

8 | 2024 THIRD QUARTER FORM 10-Q

PART I. FINANCIAL INFORMATION

Table of Contents

RH

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(Unaudited)

NINE MONTHS ENDED

NOVEMBER 2,

OCTOBER 28,

2024

    

2023

(in thousands)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

  

Borrowings under asset based credit facility

190,000

Repayments under term loans

(18,750)

(18,750)

Repayments under real estate loans

(44)

(20)

Repayments under promissory and equipment security notes

 

(1,160)

Repayments of convertible senior notes

(41,904)

(1,696)

Principal payments under finance lease agreements—net of tenant allowances

(19,609)

(9,551)

Repurchases of common stock—inclusive of excise taxes paid

(11,988)

(1,252,899)

Proceeds from exercise of stock options

 

19,241

5,816

Tax withholdings related to issuance of stock-based awards

(188)

(126)

Net cash provided by (used in) financing activities

 

116,758

 

(1,278,386)

Effects of foreign currency exchange rate translation on cash

 

214

(733)

Net decrease in cash and cash equivalents and restricted cash

 

(36,676)

 

(1,129,108)

Cash and cash equivalents and restricted cash

 

 

  

Beginning of period—cash and cash equivalents

 

123,688

 

1,508,101

Beginning of period—restricted cash

 

 

3,662

Beginning of period—cash and cash equivalents and restricted cash

$

123,688

$

1,511,763

End of period—cash and cash equivalents

 

87,012

 

380,695

End of period—restricted cash

 

 

1,960

End of period—cash and cash equivalents and restricted cash

$

87,012

$

382,655

Non-cash transactions:

 

 

Property and equipment additions in accounts payable and accrued expenses at period-end

$

48,186

$

38,031

Landlord asset additions in accounts payable and accrued expenses at period-end

9,792

3,621

Excise tax from share repurchases in accounts payable and accrued expenses at period-end

12,491

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

PART I. FINANCIAL INFORMATION

2024 THIRD QUARTER FORM 10-Q | 9

RH

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1—THE COMPANY

Nature of Business

RH, a Delaware corporation, together with its subsidiaries (collectively, “we,” “us,” “our” or the “Company”), is a leading retailer and luxury lifestyle brand operating primarily in the home furnishings market. Our curated and fully integrated assortments are presented consistently across our sales channels, including our retail locations, websites and Sourcebooks. We offer merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, and baby, child and teen furnishings.

As of November 2, 2024, we operated a total of 71 RH Galleries and 38 RH Outlet stores, one RH Guesthouse and 14 Waterworks Showrooms throughout the United States and Canada as well as in the United Kingdom, Germany, Belgium and Spain. We also have sourcing operations in Shanghai and Hong Kong.

Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared from our records and, in our senior leadership team’s opinion, include all adjustments, consisting of normal recurring adjustments, necessary to fairly state our financial position as of November 2, 2024, and the results of operations for the three and nine months ended November 2, 2024 and October 28, 2023. Our current fiscal year, which consists of 52 weeks, ends on February 1, 2025 (“fiscal 2024”).

The condensed consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, as well as the financial information of variable interest entities (“VIEs”) where we represent the primary beneficiary and have the power to direct the activities that most significantly impact the entity’s performance. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process.

Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements.

The preparation of our condensed consolidated financial statements, in conformity with GAAP, requires our senior leadership team to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be material to the condensed consolidated financial statements.

We have assessed various accounting estimates and other matters, including those that require consideration of forecasted financial information, using information that is reasonably available to us at this time. The accounting estimates and other matters we have assessed include, but were not limited to, sales return reserve, inventory reserve, allowance for doubtful accounts, goodwill, and intangible and other long-lived assets. Our current assessment of these estimates is included in our condensed consolidated financial statements as of and for the three and nine months ended November 2, 2024. As additional information becomes available to us, our future assessment of these estimates, as well as other factors, could change and the results of any such change could materially and adversely impact our condensed consolidated financial statements in future reporting periods.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 (the “2023 Form 10-K”).

The results of operations for the three and nine months ended November 2, 2024, presented herein, are not necessarily indicative of the results to be expected for the full fiscal year.

10 | 2024 THIRD QUARTER FORM 10-Q

PART I. FINANCIAL INFORMATION

NOTE 2—RECENTLY ISSUED ACCOUNTING STANDARDS

New Accounting Standards or Updates Not Yet Adopted

Segment Reporting: Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07—Improvements to Reportable Segment Disclosures. This new guidance is designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. Early adoption is permitted. We are currently assessing the impact that adopting this ASU will have on our condensed consolidated financial statements.

Income Taxes: Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09Improvements to Income Tax Disclosures. This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring consistent categories and greater disaggregation of information in the rate reconciliation as well as income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently assessing the impact that adopting this ASU will have on our condensed consolidated financial statements.

Income Statement: Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). This new guidance is designed to improve financial reporting by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, including amounts and qualitative descriptions of inventory purchases, employee compensation, depreciation and intangible asset amortization, among other requirements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, on a prospective basis. Early adoption is permitted. We are currently assessing the impact that adopting this ASU will have on our condensed consolidated financial statements.

NOTE 3—PREPAID EXPENSE AND OTHER ASSETS

Prepaid expense and other current assets consist of the following:

    

NOVEMBER 2,

    

FEBRUARY 3,

2024

2024 

(in thousands)

Prepaid expenses

$

23,878

$

42,089

Capitalized catalog costs

23,258

27,856

Vendor deposits

19,544

26,409

Federal and state tax receivable

19,094

20,441

Tenant allowance receivable

13,111

8,220

Value added tax (VAT) receivable

10,510

6,532

Right of return asset for merchandise

 

5,880

 

5,011

Promissory notes receivable, including interest(1)

 

3,306

 

3,292

Other current assets

30,601

29,180

Total prepaid expense and other current assets

$

149,182

$

169,030

(1)Represents promissory notes, including principal and accrued interest, due from an affiliate of the managing member of the Aspen LLCs (as defined below). Refer to Note 5—Variable Interest Entities.

PART I. FINANCIAL INFORMATION

2024 THIRD QUARTER FORM 10-Q | 11

Other non-current assets consist of the following:

    

NOVEMBER 2,

    

FEBRUARY 3,

2024

2024 

(in thousands)

Landlord assets under construction—net of tenant allowances

$

169,799

$

118,897

Initial direct costs prior to lease commencement

79,954

66,333

Capitalized cloud computing costs—net(1)

25,609

22,646

Other deposits

7,421

7,913

Vendor deposits—non-current

 

4,261

 

8,862

Deferred financing fees

 

1,764

 

2,520

Other non-current assets

 

14,921

 

13,551

Total other non-current assets

$

303,729

$

240,722

(1)Presented net of accumulated amortization of $27 million and $19 million as of November 2, 2024 and February 3, 2024, respectively.