Chaya Eri 4

What Happened
Chaya Eri — President, Co‑Chief Creative & Merchandising Officer and Director of RH (RH) — exercised 7,000 option shares on March 24, 2026, at a strike price of $39.42 (cost = $275,940). On the same day she sold a total of 7,000 shares in open‑market transactions in multiple tranches, receiving aggregate proceeds of $905,950 (weighted average prices reported per tranche). The filing also shows a separate disposal entry of 7,000 shares at $0.00 (see Key Details). The option award is fully vested and exercisable.

Key Details

• Transaction date: March 24, 2026; Form 4 filed March 25, 2026 (timely).
• Option exercise: 7,000 shares @ $39.42 — $275,940 cash paid (F7: fully vested).
• Open‑market sales (total 7,000 shares, proceeds $905,950):
  • 822 shares @ $127.96 = $105,183 (trades ranged $127.27–$128.25) (F2)
  • 2,483 shares @ $128.74 = $319,668 (trades ranged $128.29–$129.21) (F3)
  • 2,177 shares @ $129.83 = $282,643 (trades ranged $129.30–$130.28) (F4)
  • 1,518 shares @ $130.74 = $198,456 (trades ranged $130.38–$131.19) (F5)
• Separate derivative disposal: 7,000 shares @ $0.00 listed (filed as a disposal of derivative interest). The filing does not provide further explanation for the $0.00 entry.
• Sales effected under a Rule 10b5‑1 trading plan adopted October 7, 2024 (F1).
• Shares owned after the reported transactions are not specified in this Form 4.

Context

• This filing shows an option exercise followed by same‑day sales of the exercised shares — a common pattern when insiders exercise vested options and sell shares to cover exercise cost or taxes (the filing itself does not state the purpose).
• Sales executed under a 10b5‑1 plan indicate the trades were pre‑planned and not necessarily reflective of new, real‑time views on the stock.
• For retail investors: exercises + immediate sales are routine insider liquidity events; purchases (buys) often carry more interpretive weight than planned sales.