Chaya Eri 4

What Happened Chaya Eri — RH’s President, Co‑Chief Creative & Merchandising Officer and Director — exercised 11,000 stock options (exercise price $39.42) on March 31, 2026, paying $433,620. On the same day she sold 11,000 shares in multiple open‑market transactions for a total of approximately $1,517,145. The filings also show a $0 disposition of 11,000 derivative shares (reported separately), which is commonly used for net settlement/withholding.

Key Details

• Transaction date: 2026-03-31; Form 4 filed 2026-04-01 (timely).
• Option exercise: 11,000 shares at $39.42 each — cash paid $433,620 (footnote F9: option fully vested).
• Open‑market sales: 11,000 shares sold across multiple trades; total proceeds ≈ $1,517,145 (weighted average blocks reported between ~$134.58 and $140.64; see F2–F7).
• Net proceeds (sales minus exercise cost): ≈ $1,083,525 (before taxes/fees).
• Plan/footnotes: Sales effected under a Rule 10b5‑1 trading plan adopted Oct 7, 2024 (F1). Some shares/holdings referenced as held by the Chaya‑Smith Revocable Trust (F8).
• Shares owned after the transactions: not specified in the provided summary — see the SEC filing for exact post‑transaction beneficial ownership.
• Filing appears timely (no late filing flag).

Context This transaction combines an option exercise (derivative transaction, code M) and immediate open‑market sales. Exercising options and selling resulting shares is common for liquidity or tax purposes; the presence of a pre‑arranged 10b5‑1 plan indicates sales were executed under an established trading plan rather than ad‑hoc trades. For full details (per‑trade prices, exact post‑transaction holdings), refer to the submitted Form 4 (Accession No. 0001560810-26-000006).