RH

Waterworks Overview

• Acquisition: Acquired by RH in 2016.
• Category: Luxury bath and kitchen brand.
• Revenue: Approaching $200 million with mid to high teens EBITDA margin.
• Growth Potential: Targeting expansion to a billion-dollar global brand on RH's platform.

Usage by RH

Platform Integration

• Showrooms
  • New Showroom: Introduction of a 3,000 square foot Waterworks Showroom in Newport Beach, California.
• Interior Design Projects
  • Specification: RH's interior designers worldwide can specify Waterworks products in their design projects.
• Online Sales
  • E-commerce: Customers can view and purchase Waterworks products on RH.com within the next few weeks.
• Sourcebooks
  • Future Plans: Testing of a Waterworks Sourcebook planned for the second half of 2025.

Benefits to Customers and Stakeholders

Customers

• Increased Accessibility
  • Availability of Waterworks products through physical showrooms and online platforms.
• Enhanced Experience
  • Immersive brand experience via new showrooms and digital presence.

Stakeholders

• Investors
  • Potential for significant growth and increased valuation through platform expansion.
• Designers and Architects
  • Greater exposure and availability of Waterworks products for projects.
• Retail Partners
  • Strengthened product offerings and market presence through RH's platform.

Strategic Goals

• Market Expansion
  • Exposing Waterworks to a larger consumer audience similar to other trade-focused brands on RH’s platform.
• Product Transformation
  • Leveraging RH’s platform to enhance Waterworks’ business model and scalability.
• Brand Elevation
  • Further elevating Waterworks’ brand within the luxury segment to build a highly profitable and scalable business.

Future Plans

2025 Initiatives

• Waterworks Sourcebook
  • Testing planned for broader market exposure and enhanced customer engagement.
• Digital Enhancements
  • Continued upgrades to RH.com to improve the online shopping experience for Waterworks products.

Long-term Vision

• Global Brand Development
  • Transforming Waterworks into a billion-dollar global brand through strategic integration, increased market exposure, and leveraging RH’s expansive platform.

Financial Projections

• Current Performance
  • Waterworks generating nearly $200 million in revenue with strong EBITDA margins.
• Projected Growth
  • Belief in significant opportunities to amplify Waterworks’ business on RH’s platform, aiming for exponential growth and market share gains.

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Note: The information provided is based solely on the extracted financial disclosures and does not constitute investment advice.