Chaya Eri 4

What Happened
Chaya Eri — President, Co‑Chief Creative & Merchandising Officer and Director of RH (RH) — exercised 7,000 stock options on 2026-03-17 at $39.42 per share (cost $275,940) and sold the 7,000 shares in open‑market transactions the same day for total proceeds of $947,380. The result is gross proceeds from the sales of $947,380 and an exercise cost of $275,940 (approximate net cash of $671,440 before taxes/fees). The filing also shows a derivative disposition of 7,000 shares at $0 related to the exercise (reporting notation).

Key Details

• Transaction date: 2026-03-17; Form 4 filed 2026-03-18 (timely filing).
• Option exercise: 7,000 shares exercised at $39.42 each (total $275,940). Option award is fully vested (F6).
• Open‑market sales (total 7,000 shares; total proceeds $947,380):
  • 2,700 shares @ weighted avg $134.50 (trades ranged $134.10–$135.06) — $363,162 (F2)
  • 3,292 shares @ weighted avg $135.70 (trades ranged $135.12–$136.11) — $446,730 (F3)
  • 1,008 shares @ weighted avg $136.40 (trades ranged $136.15–$136.74) — $137,488 (F4)
• Reporting notes: Sales were effected pursuant to a Rule 10b5‑1 trading plan adopted Oct 7, 2024 (F1). A derivative disposition of 7,000 shares at $0 is included in the filing (reporting notation). Some holdings/options are held by the Chaya‑Smith Revocable Trust (F5).
• Shares owned after the transactions are not specified in the provided filing excerpt.

Context

• This was an exercise of vested options followed by same‑day open‑market sales — effectively converting option value to cash. Such exercises followed by sales are common for insiders exercising vested awards and do not, by themselves, indicate a change in view on the company.
• The sales were executed under a pre‑existing 10b5‑1 plan, which is a prearranged trading program that can permit insiders to sell shares on a scheduled basis.