RH says certain financial statements 'should no longer be relied upon'

In a regulatory filing, the company said, "During the preparation of our response to a comment letter from the Division of Corporation Finance of the SEC related to a routine review of our Annual Report on Form 10-K for the fiscal year ended January 29, 2022, and Quarterly Report on Form 10-Q for the fiscal quarter ended October 29, 2022, RH became aware of errors in the calculation of net income per share. On February 1, 2023, the Audit Committee of the Board of Directors, after discussion with our senior leadership and independent registered public accountants, determined that our previously unaudited financial statements for the three months ended April 30, 2022, the three and six months ended July 30, 2022, and the three and nine months October 29, 2022 should no longer be relied upon due to material unintentional errors in certain of these financial periods with respect to our calculation of basic and diluted net income per share. Accordingly, a restatement is required to correct these errors and our Prior Financial Statements for each of the quarterly periods ended April 30, 2022, July 30, 2022, and October 29, 2022 included in the associated Form 10-Qs previously filed with the SEC should no longer be relied upon. The unintentional errors in the Prior Financial Statements were as follows: We misinterpreted relevant authoritative guidance and added back the pre-tax loss on extinguishment of debt in connection with a portion of the convertible senior notes in the computation of net income available to common stockholders used in calculating basic net income per share. As a consequence of the above errors, the computation of diluted net income per share was therefore incorrect as a result of the anti-dilutive impact of (i) adding back the pre-tax loss on extinguishment of debt and (ii) including the potential shares related to the extinguished convertible senior notes in the calculation of weighted-average diluted shares. The miscalculation of diluted net income per share became evident when correcting for the errors to basic net income per share. We will file amendments to our Quarterly Reports on Form 10-Q for the fiscal quarters ended April 30, 2022, July 30, 2022, and October 29, 2022 to correct these errors. Similarly, basic and diluted net income per share and related financial information affected by the restatement that is included in any previously issued or filed reports, press releases, earnings releases, shareholder letters, and investor presentations or other communications covering the Non-Reliance Periods should no longer be relied upon."