Restoration Hardware (RH) Approves $700M Buyback Plan

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.

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