RH (RH) 2 Jun 222022 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the RH First Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Allison would to conference I speaker your Malkin. Instructions] like the to over [Operator Please, go ahead.

conference Thank you. our earnings for for joining Good afternoon, everyone. first Thank quarter you us call. XXXX

Friedman, Chairman me Jack Chief Officer. Financial are Joining and Preston, today Executive Officer; Chief and Gary

matters referenced release I well results our to as to press securities factors to the of our any Please eliminate as reflect impact description of the could light detailed within and our release statements also may more obligation of Before refer undertake involve results the this issued filings, for and that to actual forward-looking revise that, no the in the of our uncertainties this federal disclaimer, as these today. our note a including to remind cause results. meaning or risks of our a non-GAAP items. Please may we SEC statements statements outlook forward-looking of These which we start, will differ events. publicly date Also, and press call, materially. these or to revision that make forward-looking during call, statements number of are discuss measures, financial new release you other of legal GAAP laws, our about today forward-looking the that we business certain issued would like risk statements today affect of results we information our only of adjust in opinions that future certain the

financial press of reconciliation of ir.rh.com. Gary. With non-GAAP these measures release. regarding A at turn is call measures section I'll website these in available this our information the also call a the GAAP broadcast additional on Investor of and find will that, You to live non-GAAP over to results Relations today's financial

good and Thank Allison, you afternoon, joining us. you, everyone. Thank Great. for

growth we To and million $XXX up are quarter another versus shareholder revenue people, of we'll XXX representing industry. increase million first by points pleased promote expanded rates margins As in as in one to ago the our record XXX highest demand our $XXX the slow. quarter, product the shareholders, points report year business, we start basis to margin basis with results, driven in the began and partners trends XXXX, a letter. do, resistance to XX% of Gross versus two-year XX% as to our increased and

and to performance ago. a of industry, operating destruction risk not results e-mail has those now thinking and been loss us While as brands believe financial has once you certain widespread sale have the adjusted leading across down path. long-term margin enabled luxury and XX.X% new It's home for versus reflect by that model of industry, We they been brand reached first of furnishings in filling there our discounting there standards discipline as inboxes, begin inspired that of quarter be that XX.X% a set promote. to by year may and our the there long-term short-term is our the to barrage choosing risk share erosion return market

are In-Your-Home, RH deleverage inclusive our basis quarter. of results International development and XXX San of rollout Our the Guesthouse, RH opening the XXX of SG&A the to of Francisco and approximately related of points RH RH led the of in the investments to the which base

months in of By two-year $XXX line We year. percentage second bond of terminate we forecasting XX remaining hedges. peak of affordable quarters on as in of cash of quarter last to outstanding SG&A $XXX notes, $X.XX net and repurchase Books our after revenue the million our free warrants of expect in SG&A the to with $XXX million, of trailing to unwind We billion with spent a and $X.XX a flow to million a we revenue all EBITDA ending balance hiatus. the return now adjusted of million X.X cash as generated in quarter, the fourth mailing Source billion. third percentage $XXX debt are as and outstanding We QX, cash sheet the be million

quarter quarter, of transactions, of trends, outstanding. these several softening financial second market outlook Based uncertain revised have disruption the the the convertible time our began during in on Following fiscal we for Fiscal and outlook, trends environment, the demand the the record invasion $XXX performance have of Ukraine over macro we XXXX. past and following despite which million current XXXX months. further notes at and our providing slowed experienced the are first Russian we've

X revenue XX% net of minus growth the up range a XX.X% in the with net quarter the adjusted X of XX.X% last year last revenue to XX% adjusted range year of in versus margin operating the operating to versus range a range minus in ago. versus in margin XX.X% year, versus to XX% ago. Fiscal of X% XXXX XX% year, with up X% to XX% Second

of of bespoke pose includes the of compelling unveiling Modern, our new will expansion the the no San fashion. this home. Historic Gallery first inclusive the mentioned, of XXXX The of were and prototype that today, that RH the of Francisco, our of XX with investments most experience product Brand for In-Your-Home, potentially beginning and ecosystem, shed you believe our opening of will The Building, plans for gallery the The and future the the fall; the on evolution collections opening we've the elevation XXXX, in challenge most RH and of believe customized christening Interiors RH our market enable share to haven't RH extending quality of a RH spaces chapter there as of the Gallery and RH the mark into valuable countryside unforgettable that York, the England, new New innovation will to We enhanced history, delivery on less the GXXX at The plans macro Aspen; the scaling our disruptive growth The with Guesthouse to and and North taste takes business cycle online It's RHX, a at Steel in many the yet performance. we our spending virus, English introduction premier those magical quarters continue were luxury San taste the taste. And the memorable hotel unique of delayed World as the The will we RH, GXXX by idea to introducing by market; year. is UK Palo in date. open experience new XXXX, May of to year American next brand later into extraordinary incredible visit with seeking those scale the as vacation. and privacy RH Paris, Bethlehem of a brand. and COVID-driven RHX Contemporary, Beginning affluent The where the the the disrupted of our and hospitality the vision launch with and and in been through for if us no Caviar new the of navigate long-term while to the At an multiple century, the we headwinds, Center, Guesthouse, a you Francisco, revolutionary plans of yacht wealthy of selling RH places New the the Aynho our industry-leading our will detail which RH Champagne billion While be Park, the in RH with Guesthouse; luxury the the the this The a next Interstate the expand scale, available we introduce galleries Alto, York long Fire debut of the Shopping to York for The rollout view. the Mediterranean, it. in a will the far-reaching. RHX, charter Stanford of highly RH large introduction of Charter dramatic of an guiding of an RH at are available RH concept Caribbean new, globally. Live every visual and with England our and and opening that elevated products, restaurant extraordinary travelers investors New driving shift, $XXX off to in expect concept, our opening productive several and not new lift and the London, and of we in Gallery quality be our the website. which launched experience galleries. Historic continue and brand. Milan represent next We year short-term XXth believe the raise and growth from RH and the

home is be goal admired as the build to RH Our our most lucrative brand and has for position proven arbiter case world. to to in both we the quest continue as the disruptive the of

rendering compelling leading the and RH Our more most home our brand scaling valuable enabling attracts planet. platform, and the to their on work artisans manufacturers, across the designers, luxury products integrated selection curate of

our collections of expand over the Artifacts, next with RH decade. Antiques RH scheduled Color, RH continue and launch other will and introduction collection to RH RH elevate new RH Bespoke, to Artillery efforts Contemporary, Our and the Mature,

generating will revenues billion unlock every the open $X billion $XX of to billion $XX in North to plan assortment, globally. value of in Our immersive America design vast to billion market $X and our galleries major

and and spaces by as place the and Our thought ecosystem to leader, and strategy brand taste move global is maker. an conceptualizing establishes the products building selling places, to beyond RH spaces brand of services products, a that selling curating

rendered elevated our further by services more and by inspiring integrated hospitality experience. and rendered valuable elevated and architecturally galleries, seamlessly which products are our are design valuable more interior Our

four elevate seeking create as the efforts our industries. of beyond American where RH will goal to $XXX to hotel North our is hospitality new market into privacy we the travelers Guesthouse, and for billion Our walls RH continue a the extend in brand luxury galleries

leads Napa RH redefining food, RHX, vacation. our RHX, Additionally, and jets, This the affluent for immersive and and in our our bespoke design an interior experiences charter, new Yountville, building elevating by and disrupting and architecture. and the authority our experiences amplifying multiple visit and art architecture private we RHX integration These streams, to and of RH existing is luxury wealth and and world's customers creating available consumer-facing platform our wine, design adding galleries, yacht our and our industries. where are revenue like brand and that through design the the interior Mediterranean, expose Valley. architecture, Caribbean services business while first of architecture, landscape the core strategy long-term landscape inside evolving new

market deliver into full spaces, we $X.X American moving that strategy be inspired Our and the discerning taste furnished strategy the of World and launch Residences, brand. billion apartments, trillion as customers of with consumers. and and to and of and to furnishings can North come value portal comes the the will the sell with life integrated we circle RH condominiums entirety of to online conceptualize home serve explore market launch our digitally services The beyond an dimension as our where homes, $XXX RH, housing by depth fully luxury begin time

an authority that of of leaders arbiter will Media, the and influential when shaping RH further celebrate and as taste amplified most a world design. the will who platform we are be architecture Our innovative content introduce

largest by trillion expand opportunity A the billion global represents share addressed and the to Our brand market of opportunity. the $X to one ecosystem plans world RH globally of valuable most to $XXX in multiplies market billion the $XX a today. X% any $XX trillion, to

live taste curated inspires in thoughtfully Amen brand of valuable. and a spaces brands Our [ph], and the an top we Cartier, makes ecosystem Never elusive LOUIS to one Every with luxury to to. a mountain. [indiscernible] brand ecosystem travel, and a unlike services, to VUITTON by of want rendering and to so, the our luxury no world. And to no than Martin Taste world was elevating from more better customers an you in to Winston attempted by believe emotional other brand mountain design, the connection positioned Chanel in climb the to to Perry peer. other inclusive. doing create places, dream, RH, Aston RH can brand products, top, at way make any be of the and creating dine, is luxury the nor the born [indiscernible] before do building Climbing life that

are who neighborhood, from capable what tip work of, nor We we are a in parties. be not invited extraordinary their and we are We that respect. reconsideration of at that to hat of do has the their their forced our mountain it requiring to top creates so understand to the those

and also a for gets faint continue as become years journey of slim. transforming a odds the a the with on nearly into by one persistence, of times that of detergent laundry scar mountain, that in earned learned market our and or of the carpe learnings, be the and cultures we and home to they the We the with The passion in the million courage that And the XX builds a leads cap reaching tissue $XX and organizations. catalog box-to-box and top this individuals getting the time heart. character XX, and managing development knocked world. by diem. the this in is leading the the business, began the XX vision bankrupt the onward getting business not by luxury required air be by we thin and Team RH, or up appreciate cover ascent, moral developed the ago, classroom a and mental must brand lessons of Lessons down forms building can't the strength

open we'll operator, call questions. point, for the this at So,

Stanley. of Thank you. [Operator from first of Our Simeon Morgan Instructions] Gutman line

begin. You may

Hi and us a give Simeon along market more on will you promotional it question. question Gary, you give if you steadfast, first annuity my I will to is you environment maybe share That a sense terms tolerance -- you the to loss, adapt it promotional Gutman. can me guess, to. discipline the have spoke everyone, continued was you first that it's this, on to in the of Can path? my or is market the of take if

ask it I think you you. if you depends on how define

environment. create, the really in are kind strong with operating our to we best in opportunities balance of capitalize of by model optionality lots really on think and any I sheet far. industry well-positioned A

scale, the desirability, and do the ours and just is say, like you So, discounting you luxury remain mountain you're trying fall about phase. want as thing last perception, I trying into disciplined to to to think brand a brand when build to have you a we can't

graveyard And around XX% that years walked went you'd there. mall short-lived over. most for be retail But long Its don't to a much of on, into of needed for no was a trying mall, lot decade XX and We're year-to-year make and going a you of road, And build right? life let brands that's cataclysmic if in ending a here. to not have I turns way we're that's path retail short their the Generally Of brands to world build journey. a It's sustainable not to And journey. if the of shopping reason, quarter-to-quarter course, and journey. something decisions handful XX% of trying move that would is stay not we go is we a long it a And there's back when It done with not road introduced. X% brand It's the is out to how the there's world. very and businesses less what some or because not liquid, like the And we're It's to trying on. that. a surprised Now, would. joke retail cash? a inventory to continue the to we're a decade businesses the center that than we turn retail this bankrupt. company say, lease. get live is some gets ever I build peer it’s times journey ideas, a truly and on

served the thus finishings well I us and prepared well good to we're us for will serve make long it in far, future. believe run. It's So the

the or your the Thanks advantage? that. exact about buyback in should terms exacting And for in you of you've the how anything there share can cash to follow-up, Is the question, been think on timing pretty we using past. your

in new the there's they opportunities raised we they have times, a than there's of Yes. choices more we the going have optionality. be Well, make during may see looked to in life. of Well, and a things look valuable uncertain much can a will different to capital lot lot And past. to

that returning shareholders capitalize and there's opportune on it times means capital means -- be, value, repurchases to be real our do that through whether to to long-term So make that share we I over and whether estate certain market create acquisitions what or real forms is to deals accretive our shareholders. of create or will two, for value think estate next a other decisions difficult the year can more

careful, fearful So be be as greedy. and are Buffett to others when others agree Warren says,

So have put decisions place to SX that we're to trying a company make optionality -- will term. in ourselves the long to to prepare the benefit

And Steven comes Thank Guggenheim. our line from Forbes of the you. next question from

is line open. Your

was color the and contributions Hey, Gary and opening? remainder during one approach England of RH could we and afternoon, potential of just or year around the if Good thoughts Gary, any updated assumed you the curious year Jack. as some of sales I on the provide RH thoughts RH the England, Contemporary

a good That's Sure. question.

the we towards going all Italy in it's dramatic an work think made to travertine our most And at of excited. to that think in the going to early San contemporary, we set looking clearly the designers, the go, interior that's they've collections, whether world this, them and collection high-end gallery, the too, bespoke seen, these and ones and Francisco RH feedback the entire consumers had while even in and from help gotten, sofas to I broader never the really shown up want getting of just all about & you're love introduction look we're ever quality the the got and when to fabrics mean, they especially So collection. we're through also designers best done, brand believe RH where our other evolution more that highest we've people a and the that San Francisco with Holland an company to main Sherry, and travel furniture bespoke are our market. have you've been we've open-up we've had really tour given And I the

remember, to crazy about ones in business, is can opening being optimize we been we've business retail. history last, we been do thought industry our And couldn't dependent very stores been probably – of shrinking probably or much online proven interesting, all really know, building of be the on goods years everybody it's retail retail. stores. are have and business. the to so it's excited specialty for our seen model. over at where don't that only people But we world the the in the growth I closing it's stores contemporary. because the our beneficial to and X history There's biggest And very an our in has more So industries you the XX business And operating stores and business sure, accretive in our and were

probably take. any can acquisition, finding customer that's And form opening As direct retail you out, are see the people stores. of lowest cost it's why a we

we something into all worth. Books, what into when to understand critical be would Source how be in early retail presented does obviously We and our extrapolate can have and it that of get potential contemporary. in So the We'll translating read. and it's will online math concert the

do launching job been better in got on our Francisco, in of will a they're kind last of or of times, goods But the online but San now, inventory or And Jersey into the so see West inventory into get is We've into But pretty of And months. already York, the right we be in New to Books, and take we've over legacy – Chicago, the goods when matrix the right? New persons. customers on a designer then travel projecting and have They'll biggest move that's where to Source important and quickly. get most our got goods course, several in difficult because galleries to placing our RH store inventory of we Greenwich, in lot Connecticut order bets. in much like goods this we'll plan actually Palm, in you Because a with regionally, might somewhere some working markets. the consumers the order. places

is there and out the transformational. So we getting the I be into goods to goods going see getting the regionally galleries, think, all

contemporary by You are home. stand look So me, in a very and have the XX% essentially were going nothing's we did it of had many made always choices we look, extended And of so year, believe to be and I've level. so Source actually And been growth already there's all age? moving demand We more big We've the variants. last to was did set the bigger email said, decade strategic don't I market some decided a the to remember next will always of our closing We was COVID our the up fulfill. does what And of of try really what's and to and time, Why were rocks a way had And to I growth like forth. of time XX% We What industry all we this we of people. external in another in and kind the is it's optimize at chase focused kind what is more did. chaotic occupancy. We demand than that's people another versus COVID. energy that, and of a that like? taking at focus say, we changing. use revenues first, on on we this. and demand could not We said, And critical you to, as chase our And period that going not and during How long years. period. different, Books of I growth think, of beginning we And think we to offices, no where two the because COVID. a decade over over marketing no picture? our it to over the COVID last no and a right? back lift similar that the exactly restaurants not then newness, on the I We Besides had right? years. going out to was this couple years very always Etsy anything. different and that kinds we relates other few sector, Basically, is performing? some got view were benefited, COVID. closed that. last business outperformed things to kinds All And of pandemic. had to tell Wayfair the X-year And we all newness have temporal. people. was related year, an model, our is XX% everybody in be that were about selling yet or than like were It's greatly than categories Everything decided others? look, no Wayfair, they much store probably

any you to during If pandemic, brands, But the those at you're you're we going and that anybody no probably things furnishings lot needed with retailers, if selling newness no of books. outperform. a people masks, you're a of look home selling outperformed

innovation I in a within meant a probably think incremental to but would new work company product did say, way we backlog. bigger of demand. we I And to demand collaborate revenues, have we table, way did the center newness rearchitected We would we've it's way. imagine. So new have a we new company. a of would have our we during have the the what But up and We instead on mean? the what It even I left RH integrate parts internally. assume that that. that period, We product did couldn't rearchitected because took to in would we would created built contemporary place almost is had had we might if Contemporary, like a incremental we

by if at we going home put that If contemporary you believe tell have book within a be assortment collection just the months you which the But of shipped launched stores. think and go catalog. to supply a things online take with compare you it's want in the kinds the started in a ones roughly Source company Contemporary Books, of XX that -- years. have company. to might and the X brands at the They XX% for that or $X They the the didn't all there's to you look have be because it business. of is a way vendors last All new We page and the might somewhat online. look And okay, these online through that and me, a the like of all you assortment, couple because only chain six bigger is still is billion Modern. almost going than Modern backed we think is up. today weren't you

of and even the lighting, and the up our the furniture the us. of massively assortment, when end our Consumers moved think things Modern lighting, the really assortment kind entirely and that, for parts our of just opened you So, of like about really of and if changed we the that age some so right at aperture Modern not the different. the textile XXXX you introduced rug Modern, game and you for attribute all market correct business the take to sales

DaVinci world to furniture in cheap make there's super furniture language, United best there, in be made the that's not a the things -- shift made a their go to you Europe Sure in because very And our technology will in the And and world. as made to than and and product modern all make in which world, But UK true, and people the People by detail, not of not this iPhones the believe And of category made on can on over where work to made if we're high-end that piece anyone China. want of the think States, in There's to in think I of is by It's some have we of there made so ago of the there, upholstery -- as out I when in home America, and excuse you us the Vietnam, what but and of say, some contemporary all extensive is the things. in and they in better a way, It's the industrious you China cheap point everywhere. make design design art years The are China good made and furniture chief have best years view, company furniture. the product quality Italians at way. but lot from people take Angelo on the most with have in manufacturers than taken great Italy. so digs sudden, Is is bigger of forth. hard-working many also made like not world. view. things have so lot but a have it hey, Vietnam? it A impact high-quality went work, Vietnam world. design is people. of extraordinary we do. to and architectural Michael make the in in the a The just going my -- it's a and point from artisans cheap will is. in to a know key that done where probably the

and article them. generations I companies, of the it So, estimate families, sales new. don't the it's I said our When you've making product on two something families, in think I flip an highest-quality got about Italy, Italian -- communicated of or the swipe made and I think you to know sitting entirely fourth two source

you that being best swipe article you fabric are the and I is fabric you road. This world. is highest designers. subscriber communicates the and noble think best it in design, sharing spread, get in the the it world. new. online fiber the And where the form of the little quality interior the It the arguably fabric made suites very the of something suites favored house kind to on further a see and and says end the house highest fabric a When and

fabrics. what's And going we to think no we're and why right? the business. of a perennials, became massive source either wide ago I business of go and thought swipe brand than Holland what or happened years Print now trade through part eyes open and started XX to we see our people that they interesting, kill people And when go lot actually different to share the probably to that you're are it's carrying online going book when in a sharing

I same happen contemporary think thing but standard. a whole to is share, going new the with online sets

roll Now, Source do out so Books. our demand? There'll into in be it much demand online what can how -- we and does only

we've done. you, huge tell our designers Although teams of seen in such I our would never anything our and galleries advocates I've

incredible So marketing we incredible, the of don't we've an company. have a got department --

doing. we've We work, we're have a but that what got going incredible truth an group, talk and right, to about our true root of advocates are

And pretty trends, position course the the all to of to roll think business trickling not understand in, just it really going a a so to kind products. projects, to start you still buying get we'll in when of we to be of And working generally also we'll three, take goods think to all, our stock. month But on we keep September, goods start two a By think and for out despite because should But consumers have there's months. ramps do Eri, I response. be the good month the about…? then few it's in or -- a

Yes.

and not the say, Yes, every become, to since the rollout probably probably to I'd September. it company going first-third will We're gallery. of only contemporary

design square understand So And the If entire how first to product new confident are demand. square the X,XXX in we'll contemporary. whether feet line. That's legacy contemporary. a floor, to this first gallery, you're it's really gallery flip going QX, say, will the we I'd feet, be by more or at the it's X,XXX it's

where paint. do way the Well, we're galleries is, transform like some and and to to silver XXXX, mean, We in see The or in is going very QX. one weren’t entirely repainted remember, made you dramatically. now galleries company we got we've right rid the And got XXXX dramatic in are light fixtures great, thing Even right? the to look galleries. going when We in a I on it stained several when going legacy all everything We of even modeled us New stage it's to pretty our But floors we the its of newest remember all our again. if new stores, an new you're York going our evolve and even look been white -- you wall. other of done rid too the times.

there and In the of June. progress end we’ll have there contemporary by

of floor grade get by have you really Yes, kind of don't So New you've first to floor grade to of end entirely but already is times. transformational in a right? inside massively just little business. kind the in New lot kind company finished It XXXX, one contemporary strategy company of not we I XXXX, is we of of June, a see the entire the of out, transformed this the think, you'll contemporary, But entire those out, York. grades the see So first the like York. a and when on me, XXXX, but like,

will evolve just year. kind the you're to second be half but revolution of going So huge by the not evolution see it a brand, the of

QX, a think, magical mean, work? century, understand so, in one's by gosh, And inspiring people contemporary don't ramp retail And in a know ever be our it XX you will a in I impact store XXth QX I be but more to impact will because transformational I it, be just it we're about And a revenues, really I RH, excited English countryside. might think demand. it And but the say, opening is our England, in than contemporary. will year, opened continent. RH I'd way will bit Internally, way do this when how first. and ways, to won't is it next in will stuff, we we're start a right? a opening our with contemporary gallery, I QX. the in the And force. many long not turning in truly way, England, as industry, state smaller I force say, will and if little know. you'll industry, It's But as then England to country "well, our while -- some start really about and the RH is be shipping, no acre

these pretty We have that with done been history never things before. good a have

In say come. think just – built. done Francisco, the the we ventured to And going we So part in when three should that with is of have knew this have XXXX, on When you're major And open who we so Palace before building. ever inspiring new it's an would ever Grade-I we we the the because -- a just and of is – signed it's seemed X.X building, out restaurant. on new restaurant I'd point England. something the Stadium reviews could the a Coast begun Chase it be takes mean property of into in building. we thought San ever on other do minor ones, on – West But have Buckingham new thought wine so third I an hospitality knew and a it's transformation RH the was The and two today built on a experiences has from hospitality anybody the that that the It most and the we've was go little if because think hospitality entire dealing waterfront. has San in part three seen. people And XXXX anybody San bars, have Francisco nothing extraordinary that England San a Francisco And Grade-I Yelp full we – is will of I new And far, redefine that like longer. of brand nobody it. and it's one building like Live concept, concepts, important world is to listed multi-dimensional gallery RH one in whole so I most experience put our incredible on Fire and it a two see hospitality for so things, we either we perspective, the open lease We Heritage view. and company. level X.X, and -- love or extraordinary Francisco forth. nobody a

the need listed So try sign-off Grade-I on to almost you building, you when anything to in queen do it. a

because luck the business future. So it's working normal on Good wanted to was there is And a and the that. companies things their by everybody been little run to do want Zoom with going on in COVID Zoom. nobody and they slower than also or way, the

kind going to Those last the in want that years, that like doubt. better in breathe don't you're the over send work. think worked world I just company. it people Musk who your that of thinks phone Elon that you're anybody Yes. no just Like to are people to those yeah, are the two paying

So get is the that – us get to done. world help excited going we're back to going things

hard the lot We'll open could in I at like have have open, excitement. of give probably casual. longer good it not little that in will like of late of it, the it What a the – will to a anything tend – kind be anything get we of but Orange England restaurant So gallery last a think in promise range. about there. but we get out – open winter, we'll which up got we'll know. it's world. things to concepts. I two more conversation. people will the and people We to And is spring, right think when it the we'll open set excited don't hospitality maybe about else about. to but now Lows a we it do, to and about to like the in we'll open they third just approvals to kind get we know England, be kind in think RH open, we now lot weeks be August, wanted open, and a we it. full going I need London the But create excited we other yeah, probably a three will next a demand huge We're restaurant, think [ph] excited I wrapped then weeks that, for about because point. two are demand about three of get things But of wide this it We time to a some And think But talking of unlike kind away? will

hard at guessing us. better to like just one year it's what one – could things sales hard of England were That for one RH So wish that. it's say we at I will be. we a --

If We see overcome, make is then how and get some And our it try directionally improvise right to yes, then question we strategically feedback going and get of right? every gap we goes. So and directionally quickly. plan move right, inside feedback, we is, things we're we kind we data to and Are pretty have of real like wrong. we right? The company strategically to are we we'll say we extraordinary. adjust real kind get the degree

we're but -- it. about excited So

San I world. think in be in that's it's hard just store going to And the you opened say opened Francisco. ever the that's to after coolest

Gary. you, Thank

Our next from line question will from of Zaccone Steven the Citi. come

Your line is open.

the I Great. out Thanks for call. taking the appreciate question on the shout my and lineage Italian for

the year. to wanted I ask guidance for So, about the change

reported. more you the So you color on could last you softening bit as demand a just the maybe late, of great time of seen gave such comment you've

maybe flattish to XQ versus curious, to some half new second guess be then And a of these year of how reduction down? I business the So, seeing the take revenue much you and in initiatives? really guide a demand I'm what delay it of are in the in is

don't most I how there. the months much softened demand out think, mean, have. I the and And the war, slowed further know next I couple beginning the of Yes. at of I narrative, the is color more as of

this do anybody think this has we time all -- It's see it seen I first at like inflation wisdom, to Not ago. on call like right know we a guiding a So were it does knows think lot the anybody people lot, as How adults years of don't this say. I that least XX unfold? right? I many how now. how today. we're don't years, XX Not I right? adults -- in if, had really we

So XX, XX had years people really XX old. years XXX that or the are ago wisdom

know it to sense least might so to And my lot it took did was is how on economy. long? at. wrong, people what Conference to the is we those exactly kind we're long happening? small that highly got on at like be asked, decision-making of the group was kind active culpa guess President a just know from roles. in of that we America, going I to capitalists, of getting you have enough the lucky several have you right? And like so clear go a admit what's world So What's do. forth. to Jeffrey biggest of the so that same you China. from to were what's ago all X% is Like out don't to experts, of right people dinner Mea Like not going this then to the how inflation from without and had a here a I What of still in credit of did cryptocurrency all on X% venture going old now. And was come And had around do for of with at they ago, it X.X% ask this giving questions companies lot mostly chance her say I one's [ph] on, have the Wonder people finally world way really okay, and have and I've XXX doesn't X%, Casterberg Yellen I no like wrong. the saying interesting know everybody North mean, think too put biggest but enough also not wrapping on like, been we're long to some you before down Janet night and the X.X%. ask one I seem out one yourself I runs is of attend a think to the inflation interact really up, but someone Woodside today? where in with end people did at who that what where

for portfolios high running we've Is We me think ask that. at going with inflation say is leads we on alive consensus venture where Fed or leaders interest thing forth, than concur Is talk inflation. I housing rising the would and so the the it rates. it so when hasn't you interest happening, interest and come to really usually of got I business good people raise that enough. rates to done? capital they're know If is rise, stated They has we've surely people it housing that what market much know down? if say long the who and you run look numbers rates We higher and to that big the what's you Anybody a a market. not got tell to been of recession. to It you thinks is not. the good for businesses

got And interest so rates. you've rising

That's tighten. can. bullets the on us to recession our off to want and somewhat the So, the -- some we and an a have easing -- none -- remain able raising best try volatile. know. they and to too economy We highs inflation in and rates to to we data based flexible to it protect for hands time a capitalize get there sudden in government be there's model. just go without cost to to the just sheet to contractions going that planned The and can the have in us of starting and and prepare that some did can And at be you ball. our And like prepared. of things. raise where right? that work. things figure of yourself able debt make an prepared, are market for did change of of to we do be want might it's crystal a the for been capital, predictions markets. You and was for go earnings it how have the reason, to that not highly all quantitative we could a multiple that to So, to we None doing like here? balance out accurately, good are if inside But strategy the best look about we're forecasts it's Look, money how way up happen the get We of We everything a in of piece they've is going our business everywhere, this. believe, -- lot environment company anything -- like interest say prefer have magic fixed more I -- highly high, almost a part from

we expense. term have So, bit the debt All a interest we loan little paid is repayable. of

We've -- spent So, we right haven't money don't we money. got the any we're the paying now. spend money, optionality for

uncertain So, today. like future we of think but a Very the today, doubly our other anybody is against for the guidance in else. big And uncertain business home we're best on I'd because COVID, we're it's of future. side everybody future the say our up numbers view uncertain very

rates. interest rising got You've

matter it a inventory, You've couple years got though a if low there's -- and low even of And of off you're home kind have in sales. coming home demand. super-hot prices there's inventory, you low doesn't if

few XX, there years. buying moved I lot historic don't than moving that a stuff. the that last went I moving to might industry, there's think moving. especially for our lot We they from migration square know. from necessarily Are the X,XXX don't business foot the a think be. square over Are right? be needs anywhere home, mean, near new way. more very who a from Google the a been be I mean are in I people X,XXX that of of It again? good back. not there's was foot very movement on was don't I have lot fresh to X,XXX but back? a there's furniture. they may movement, cities were home. which people America whole and they People so don't by people I furniture cited moving -- And lot I amount Lending Tree and of of of reports report. through It's know was. foot a people data. That's think suburbs, apartment January our to square a And a amount going

reports are lot think and posted movement, LendingTree, you luck. activity. put in going January there's that XX your on as be I be Google there's think much If to good want from of to a to I going don't don't confidence by

I exciting market we like mean, to and to seen do in what fresh XX be you the have have a most or going XX uncertain new. maybe You are So be to do thing we are. And in we've market what most the that? really in that's that years.

no how I what like So positioned happens. we're matter

but hate at I a big to level, So indifferent, I'm say indifferent. I’m picture

the What Our world’s going in we're it long-term with the before. roughly we're seen XX%. And several never our over strategy is doing the is do to best next unbelievable. industry years model by

view, for long-term money. So have a there's park that to not a people your place better

invest For and do until just are it's lot think, hate for be least with to high like, at go. people to interest what short how rates term, throughout that uncertain, the the There's around I to generally year, very of it's sector. in our know, government a have do this if I at out -- inflation least figures I don't going don't

a will 'XXs up, cards college. interest. and right? buying Credit the -- paying team I when XX% in it was I'm to was paying in I remember back $XXX this, -- actually, I interest, XX% bed, go was water 'XXs, I you got like water or and remember If going bed I've had I crack XX% buying say my And

water $X,XXX, paid like I that time years it off few the by was think right, I later. bed,

rate back So XX%. our so. interest X%? stay is or going to don't don't to under it think I think the I go Is going so. X% to rates funds federal --

ways I long inflation. anything And now. for to you So prepared I fight raising right a think to got we've to have just be go think in rates interest

for all Thanks Great. the detail.

you. Thank

will Chuck Our from next Grom Gordon question from come Haskett.

open. line is Your

the guide. Thanks for on much. Hey. One very Jack

of inventory year. Obviously, some doesn't gives which anticipating margin some important But level, change recent is much XQ by what sales, demand current SG&A Curious seem and gross building comfort the block gave that the great. You color you're throughout degradation in levels. you like it was the helpful. given quarter,

Yes. I Everything our just products transform in think incredible coming I said, that is to new have we market. going

think the in discount town. good a And exciting allows most now. I like I member become edge. right that think have a we're model competitive think going I time model we to people really it's a that, so game we have our a membership advantage have a value, be great of Yeah, that's really get to now. a get if to a they And right

to Jack, in. if to go want a And you so there's

the is that anyone know into addressed I you're point. again, factor promotional if don't a the That promotional we've clearly risk asking, gets for game.

a gross I on and that be it's So just you what – think pieces, – has Gary occupancy else cost could fully. then be or shipping And expense other margin? could to it's of could or there question what those Maybe. we the addressed have moves we've the some persisting Whether happening occupancy margin But just deleverage? it's have there wrapping those. be and with visibility guide, modest made product into any

it's just built. think of I we the model function So a

quarter, pretty The wide to plan, plan And was looking first back just clarify. just I XX%. wanted your you then a think, the X%. X% up exceeded by on Okay. Great. to of margin, how over current and And versus quarter? curious next that couple about throughout I'm backlog the think demand currently trends fulfilling we how quarters? much levels the Thanks. and do was of backlogs I

Yeah.

it there's part as QX, backlog to bid I think still part the got again, million just XX the bid, the but the amount is related big that biggest of I we and XX us our a of the of that – in is left, think certainly, of you some that backlog. addressed have mentioned, Gary think in QX when backlog certainly relief backlog about helped $XXX in occurred that – to

that. on more So, to come but still

it demand wasn't But helped Yeah. increase demand. wasn't that It us. in an

it. Got

things faster. shipped was It

Thank you.

Nagle from come will America. of from question of Bank next Curtis the Our line

Your line open. is

Great. question. taking Thanks so for the much

been So like by terms I much We as kind base to guess Anything any get anything broad-based of as how parse seen. in across just demographics, your pullback don't differences. kind need just it's guess, of the by I the income curious, regional you But out, levels? or about path. customer you've thinking of numbers

of is demand parsed broad-based how seen? the this kind is changes curious out or of in in that just Just terms how the you've

Well, yeah, differences. mean, some are there I small regional

is it's manage we again, Again, not occurring, differences is that and tell and but are your lead in to – got a – – somehow business the be lead differences, this different always doesn't You've a the or Curtis, have you the so to business where us weather and way. regional winter not coats might awesome. there but it necessarily

places people going like the Texas right price to and Like pretty in good. of really be now the oil happy are Yeah. that is

Texas, affects have people to in businesses business South I going business and it obviously, of some better migration Oil a And our markets that tailwinds lot the still prices. really by in because benefited think those higher and from You're America all they're some will Texas. in of affected that be and have oil. also helping Florida, oil in. affects affects South positively they're Florida be Canada massively our will settling America,

some there's be going to demographically. So movement always

the we of go dinner the any last couple I events well.' bought San -- reach doing different. people clothes the well, many path on about Like -- last out they're Anybody I apparel weren't Anybody wedding luxury? had are last [indiscernible] Like store the completely years? mean, of Francisco, apparel is people home They're in people should luxury I two end couple go event you, how well, sales the completely new a 'Oh, don't No. aren't us anywhere? Like going industry it's mean with -- parties? years? finally industry, you years in different. had confuse to an really we How say, to we've rip. events, the a to opening over when high opened many like think,

national going well. the home. to a That is really in well. industry. were going I closed, home, shutdowns might do but and buying they was home Luxury different things Our apparel were people course, mean, like stuff is is of now, hotels issues China staying travel high are have risk. everybody do brands mean, and completely to like that. Lululemon wardrobe yes, Luxury is at going stores really do and well. luxury to like that, going to the Luxury I end. at the But are

So like specific Carrie Louis soft? numbers it But just really it's think, look -- you a have way Why many up hang don't are I'm a people I at bad now. surprised well, and right to sometimes and gosh, question. how Hermes understand at Vuitton to phone. want -- of very That's you to kind the it. I have good at

things mean, do Yes. our clear. Yes, than now. In for So that’s softer are the right we market, new demand data launch. period our first not going Again, new It's products. introduced became industry no over maybe what years years. I now are. good no in is the really really this Contemporary -- is they now, look Like is for to a two time? quarter, three others products Until the of that of

People share had we're up So going giving And yes, maybe not that back we're newness. we're are promotions. we're not to because we've because some some giving share up promoting. oh, evident. no it's know I site-wide saying,

you sent me Okay. last still month. XX but sale e-mails it, Got

Sometimes multiple a day.

never So extra seen -- are well that gross based the very see your able going and you line. margin you I've the -- to incremental cover who's to promote like going with be business where It's a I works on the promote, cost trying then who's you to might not volume. promote think to strategy long-term can

You Nobody can't discounters. do except that to spiral. has usually downward becomes a themselves forever. It voted greatness for

trying alone Again, you're a brand. no climb tried this before. long-term No Great mountain one decisions. in take. ever great brand, If we're to luxury long-term, a has tried to one's there's build path let to brands, high-end

really to QX don't everybody to no and else. it. I than that if else. going years got So, going I I are we everybody softer different all had part of be care decisions than different make else our are QX. three of in newness. than strategies everybody We're were

maybe year, points to business per five our like Newness more. generally

it's compound you if -- over we three points, quarter, years. changes first in it, the XX in That So, had well, argue, to haven't right right? now. can you any So, newness XX

Understood. Thanks on the extrapolation for that.

to make Just on got the you. a want I really just sure to time quick I one rate.

to HARC sure going quite correct? you're I terms -- that's like when expecting know Is the In be fall. of I that. sounds that it wasn't opening,

-- just -- a the final But it's get a make like in week, not instead based Yes, XXth out on the didn't somewhat I benefit approvals people our visit been building of fact we it's countryside, English our lot then [ph]. that Grade again, century construction site heritage of team, to got last X simple we mean, to approvals. want unbelievable trying

pretty So, on I get I bad, I feel like, they're what then tough, it. them I'm with. had okay, [indiscernible]. got I understand dealing

and August need together. three it like to about it project the with weeks we'll put be So, done all we'll late looks

-- we So, don't trust September Stefan in and open in here, necessarily probably should I he's I'd say we'll think is either. But no, early his that I definitely sometime September. We'll -- mid-September. -- head. nodding be I think,

in have time you to Do be there England.

So, works in timing out hopefully, terms of the weather. Anyway--

again? that Say

in is September England. of a usually time terms in great weather

question. luck thanks the And up answering So, that lines to for and hopefully, good you.

going It's Rain opening. or we're long. to. Thank Yes, we're been you. shine, too

Our the from line next Rakhlenko question come will Cowen. from Max of

open. is line Your

Great. lot Thanks guys. a

I you with may Just your is net today, whether it's shopper worth? you once evolving core like income especially as the it continue household does think So, do in mountain, who shopper be about you luxury here, real-time how guess, or your because seem going to count Contemporary. get

So, one. that's the first

we share differently we're than trying the share thinking we've both a as say, think climb So, as because our maybe giving we right? are them us we don't to right We tell brand people haven't a any -- you everyone, we mountain, to public share climb about giver said I this call, them this taker, luxury client, I mountain, the in tell about up. the kind everyone now, of we're about are I I'm but and below if moving think been

of building more So, raising we're level design, and and constantly desirable raising product experience. the quality, luxury level a of the

no forgot we've best-selling sofa. that best-selling when last one company. way, years I share the it's giver. been what than by called, sofa here ago, XX the Like, that's sofa, and was in -- get the the $X.XX ugly years, the Chanel right? Chanel a different was So it So XX green I

we're that’s positive is. the share, right? market. key Again, sofa we're it is, a share the again, the of taking But giving Chanel higher leaving the A of And behind. And arbitrage, share sofa. is constantly $X.XX we're So a we times any lot right? so anymore, don't -- doing have it's arbitrage, what at end

Sometimes you wrong. might be little a

as But gave Sometimes as like trying It's to client, right? up. have climb you be Everest. much you to may not you to share the take committed

You might get is to The spot you where a weather not good. right? stuck, get

made a You decision. bad

doing. a after Bingo, best-selling Nobody’s nobody a a your was got a one the okay? foot what -- was back business back It's okay? and taking when This not the $X, like in cardboard a trying went is of scratcher, ours, you not at number items Auto of that kind mountain a do park, is the stroll you company and up park, bit, of park. The down to in for we One rope down climb stroll to This in made are I item item little joined piece sold think the selling. was You mean, a duvet. was you a a slipped cardboard, called it next I I we're go before. the that went a up. to has

we not We on back they then, of them the sell to and had used right? bankrupt. guys have duvets? had them, foot Like, go We remember You mountains on. because to go can

We them so You go got on. and want a toys, to so warmer, on pocket else. hand somewhere High and don't demand on I’d forth. sell you anymore. dog on go and

about a-third next we to way in the be of our three to speaking won't assortment years. So some same I'd we'll half five here be the goods the of say, today. sell

and months, next say, probably third -- the I’d the the So over XX of assortment evolve will yes, bottom months. XX XX to

homes, level that, next we're quality of you say, the taking design? of of not. afford all quality that all well, in it's different all completely the more share multiple high Of spend level spend design? a home. happens? at more the But exponentially the what high they at the end, homes Can could in Do for afford they the those course have They that customers market. and people and the end and So furnishings

not about say people there, that in you So the about this and lay to thought the here, and it to pyramid, people think okay, the X% you the a more turn market up about like many pyramid people is, usually there's look upside that’s now there's at pyramid. and down our think over kind spending the down have Well, way -- pyramid here a market, to of if the as middle. typical way a to

home. you is at up exponential X.X%, the spending look you the go, So top if the the to top X% higher on

So that widest, is that's line is very that, the the at top.

I get kind of has we're really started started And what So I light, right? go. done they worked We'll doing a to Italian luxury we're going the have, there. anything how brands one categories. and top. brands in real to we luxury to don't of it's our left else, we We'll go mean, category, It how no there's global out other as things. And it much argue, just But where for figure out to tried sofas, being people the optimize other can gets sell behind? figure it. There's doing. no dominant been in couple hasn't luxury

So it's kind of unseen before.

leaders others again, but yeah, That's say, we make and do. what we like to uncomfortable. So – have to

of excite going we're lot going to and value. we're things uncomfortable, make we're people, to we're some you to ourselves unfortunately. of make to believe going lot going and we create to our we're a create But make extraordinary extraordinary we're going to guys of So uncomfortable, going customers uncomfortable, a

design it. then, lift Gary, a of, Got gallery about little a a I helpful. talking revenues were gallery, a That's think very XX month used legacy conversion think sees within to e-comm that I well. previously say to double like the as you of And XX the you when to then bit a, horizon, store and

So we just it, to you think months six curious, know, I about, is that ago, do should think that said are the framework year better. restaurants still I that or or a about don't going the

think far the should as So long-term openings as growth about we the just how curious store algorithm go.

The directionally, same. right, gets so say I'd when about higher the you're a bigger, Yeah, it's harder, volume. on the gets base double

in company, it, journey, started average just for our instance, $X.X volume we when Marin. old this And million the our like, – about think, average think galleries. you take in I let's If was –our store in

It been what, we centers, Marin our to million. million. gallery $X.X you've you got legacy million, it about million, Marin, was of here was I it, when there. around have was $XX at somewhere doing closed here $XX $XX Some seen When

So $XX went average $XX average probably if big stores, you like then $X think volumes million, to our legacy when to $XX we they started doing maybe million, $X gallery million were is probably today million. our million, these

X. we base so gotten gets when so has Actually, double the bigger, that And the was average our volume harder. started,

That's right.

brings galleries we we have But a that our have and we average restaurants and have, especially on doubling. forth, an we're galleries, But in the of and XX. incremental legacy so everywhere, traffic the average so open we volume new it now

have million a into we generally $XX if a it turns million So gallery into gallery. $XX $XX a million roughly. gallery gallery, $XX turns million

So – like XX we trend like million, and to I what think, trailing something $XX like is or that. Marin,

$XX million. So to went from $XX Marin million

With restaurant. the

the inclusive, With talking yeah. restaurant, I'm yeah. all

Thank you.

Jonathan Jefferies. Matuszewski Our next from come will question of the from line

Your line open. is

taking question. Great. Thanks my for

at contemporary the can we past today? time, levels First to RH at but Modern mentioned Thanks significantly Source other RH were much. price by aggregate relative you page, of can existing assortments Book your one, you've through pricing Gary, help some points in above the frame so page the the launch of flip

than XX% higher. points on was the some things be XX% to some be Interiors. might launched Modern, XX% XX% higher, Yes. average, on assortment. current But price than XX% things Sure. And Sure. higher Contemporary about it Yes, an about higher might When we average, higher. is we're XX%

And then just a helpful. That's follow-up. quick

Alto push Is revenue, looking indicated guide the there? On annual that for these XQ kind of Palo taken new the the year. days? out Is to of that call, or you clarification make of just likely gallery last more it next any

prototype, open new to feel we haven't. we're will to still it new a that kind are a be that and the in evolve have fourth it's -- So of but we're new the doing there. things there's using We We right? quarter, some look, going believe

So, we today, pretty good it later, about might. But means it a feel quarter it QX. opens

So, we'll keep you updated.

Best Thanks so of much. luck.

Thank you.

question line of Our Brad Thomas from Capital. come from the will next KeyBanc

Your line open. is

maybe you're you how supplementing books RH some of always line And overhaul? like the promotions a the my Source Hi, out, little just thinking traditional and the way. good coming talk as more afternoon. you was with Contemporary know don't and big curious out? count World new about get you're page in Books Source you're digital I just considering versus Thanks just was for advertising, Contemporary thinking in advertising or general. and if Books advertising that perhaps if the books, about again, with But I you the I And with I doing smaller taking question. with a website Gary, hoping to more and doing marketing do guess product with particularly then all do Thanks.

above. We're considering Yes. the of all

about. you're everything So talking

So, cost of book, ramp it's to It's expanded to when productive about aggressively. back incremental generally lot smaller as say, less than a pages size your for size leverages larger books. were more just the up more generally, so to of Contemporary, you directionally, add And more books, a lot. the the excited it mailing, we pages. we start book, relates mailing depth of the I a we books When whether would the are

You're a throwing wider out net.

world we our when differently, So, you XXX XXX explore some and kind And until But clear and stuff. But data. you devices is difficult get it's numbers a what as I X will of RH what things the what the be brand of first launched of mean, I pages. all devices, and our of of might books what about the mobility digitally launch to the get how more print we in look at to is that math our website, RH. will the intuitive. less the of and and of and We've become us XXX just all the the got keeps That's They see more to there, of better become range right? important evolving, says we still over time. -- become a World part is mid-July, like do to pages. in you of brand tell like we'd little right, with what have kind of mailboxes less lot we've just why into evolve layer, first it, the World Part got to

Yes, mid to end.

part, So, end the mid transformative to July, the of next whole back-end changes.

the the all pages, shop, way you-- And product the so you way

functionality-- the Experience

the massively. All customer experience functionality and changes

of like parts together, World RH two see you think, these the no all other of together, it's come website the when transformative, it's I in world.

light just kind right layer because go It's might the are front seeing so and word you need who see? on And of company of And brand you what you to a or brand. you the go -- warehouse things the see before sell. have knows different beyond fixture companies better the now, page, you marketing well, lighting like screen. a the to they when says, sale our like, just still all go shrinking, see, you're sale, you when you remember, web web that's you Because are they when It's and you see it can't you think X-dimensional store. and a promotional, bedding very is or

store. the of size the see can You

another get store must bigger, this is tell more store. than can You

you and store, page and before important done just You of we're can want sell. they in the on are right? product showing. don't what Because website, for do we collection, collection, RH can whatnot. front, Like get sofa like to part was and they what seconds on the the minutes, figure whatever World it out so A in of very first us is different. walk who our lighting you we the see people they and launch to some a internationally, Website

on get the of And idea, the the for look it goes a of what a the if quickly do business, of quickly. you it's World into products, are you places, design, Now, our kind of a click brand. website to But mid much you you very any places a through get you get And this it, at a the of our changes who spaces, you click then click sense and kind services, customer and products, you if but if through bigger and we changes services July. engine through and it And bigger of sense those much see click-through bigger our as time really very we experience end dream, massively spaces. much click through RH. again, of travel, experience

just going discover think a So, to know. we're trying customers see, difference, that's with to with make advertising. -- big, going big as But invest, consumer experimenting we're changing, things. -- get keeps behavior. always watching We're I some what experimenting us you'll they places We're and we we it's where we're think. digital some might And at the to as looking world

our So, you'll getting see people truth of work we the getting out us see continue evolve what to kind our out of say, the to world -- our there, it. getting approach into right for

do lot am want don't keeps Tweet. The got have with I'll to don't me Twitter to Musk So, want of a for I are followers, God a do incredible. kind how guy don't I I up have respond account? tells to to Everybody of that. everybody. know I I going it Elon is a to sake.

I lot. You must think don't a sleep -- I

though work, because an do we build see. 'oh, don't in I we've account sit account. to and don't in Instagram have before, our this world It's believe, we of of think about, to we world. kind incredible incredible. the we of But most planet have while are, go let's account Instagram for on the kind said never kind And brand to and we And and our he a Twitter the world talk sleep. create Instagram of say, and and brand Pinterest even an incredible really and don't even there though and we the really tweeted space. our we a We're really might experience, this experiences in-brand still people

do to there's and reaction about their not we're architecture, going to lot picture great used we of yes, don't tweet product. And, I take this to be not are. will of Instagram.' like people design wildfire. build like They're our really are buildings. on And in And of just the extraordinary -- about like that. is things Instagram excited really about is Let’s excited it. probably it. number design They're like there. open that's Pinterest surprised pins a wouldn't the nothing and and it, excited world to go We anymore. going to to therefore, if There's get contemporary full the for the they There's of great a They be not to incredible public. lot

Very helpful. Thanks, Gary

Thank you, Brad.

Thank you.

Our of from next question line Seth will come the Basham Wedbush. from

Your line is open.

the and Gary, different negative plan? customer as plumbing amount five assortment shedding share you B? business what's between the it the below you're if at your is elevate lot successful months, your increasingly XX and next even years good will and in What's for the share in arbitrage contingency continue end highest profile, a prices, taking luxury your plan you But and in be a the to lot if Thanks raise than the today. afternoon.

that's going months if for know strategy. making months. to not a XX we're decision. don't Again, happen I Not not XX XX-month

so So I forth, we take We'll and learned that years be there's going think but less. years adjust lot. and we've a and we maybe more so to take

made we've pain the look course short-term to of long-term you transformations for the our back gain. some there's here, sometimes So over history

know like exactly through you there what that get you looks don't You work you and But there. it. get until

go backwards. don't You

goal the You get mountain get your And, you don't there. the otherwise, mountain, to start how down to up figure there. when going never out is go

defines we in what that discuss us. not company. this say; what we we it's So It's do

there. get get the the Believe top to we can we we So will looks We mountain. like. me, will know what see of -- it

that enough be to this will company. And say get enormous data. we very, if have there, There's evidence We we enough a value. will large create very

X XX selling don't next my or know, XX I Over months, the points cost stock. it us I'm not points. like,

A. there's So a plan

A. Plan

Let’s A here. plan, inclusive in and it pans it’s hope out we’re

A. Plan The

you, Gary. Thank

the ready next we’re question. Operator, for

We probably take one or two.

Our Horvers JPMorgan. next from of Chris come the from question will line

open. is line Your

evening. Thanks and good

questions. So follow-up couple of I had a

Chuck's earlier, And suggest decline? the the up that a you're side, question for on X% expecting down bit? to guide mid-single-digit First demand on the revenue X% does you're on

chain chain revenue but but continued view have I of supply suppose mean, better with lead latest times an and outcome. opportunity Supply is our the I what we'll and improvement seeing a the in we're also there, better. delays. see. to delays, there's this Good is opportunity

following of it. years… And A question. couple Got up on the then advertising

Demand.

Say again?

We're not commenting on demand.

point. I at didn’t that So

Okay. up advertising the And then on on the – question. following

even different but will So brands? you're last maybe just to you think million of Can extent you that few many million. advertising. you quantitatively, spent out across spend bracket books in in ago, $XX terms – thinking year, maybe you A spent $XXX like had send how any about the years how you

mailing, million book reprints. Chris, $XX no outdoor reflected, some the but an look, and essentially

and book, spent and – an peak, fall think we spring years I reprint. and that so two ago, And reflected at outdoor million, and $XXX books

I don't distribution the again, current that on like So that of frankly, is end it's not spectrum guiding just based more level, this we're higher don't, on I Books certainly but platform. the Source to back advertising. think year it's our that.

the it's – than meaningful we're spend. $XX more a It's doubling increase. million Yeah,

actually. that's And guidance Yeah. in our

our in that's guidance. Yeah,

Thank you.

comes of Michael question next UBS. the Our line from from Lasser

is open. Your line

right XX%, of think end the $XX to home top Good billion, top $XXX billion how you you're going that the is we some furnishings going That's that first now, top part and strategy market. of to would the billion of evening. the If is say XX%, were States. sales additional big the have to higher X%? for sales after a fall engage $XX demand the reconsider market Gary, or a in the market, if top assume that's activities? second is start it there do you margin question. And you trading X%, that we level duration in you're United part a is to to that if Are creation the total after

XX% billion, you're to $XX is assuming... first, not there, So the Well, running you're just a right? you're line top $XX straight saying billion because

Yeah.

is The flip right? the It's have people. example, pyramid the that don't Yeah, gave of home no have spending just upside not the kind XX% the the market at to it of you that's exponential, right? you'd high an right? I and take of is, of So than down. wealth, market the on well, way end different home the distribution

the have You right. of the in world, don't XX% wealth

Yes. I understand

home think they Look how homes start cost. distribution, gold wealth kind lower. affects are, I sofa spend market. massively Yes. people the like, like It's gold, The Think down they'll XX% the Think I numbers at what big top -- many about think versus that the someone than at you're to about thinking, about is for top. the how much how XX%, half. about much really all mountain. homes where guess how how those thinking top Think about mountain of there. concentrated of the -- at is the are massively it's the in different. they're about the the it's different

climb. So nice just that's why we're we top had a of the That's rewards to the trying where to say get the are. that's mountain

get And several will take been criteria to it's And it on. this there. going moves. be so, been long the a than just to every past the time doing no got of It decision-making -- now. we've pain a to We've to get And gets we've different of and the for higher. big worth the all kind same. in a pivot make whatever But kind big and is harder little years, you're short-term

created that look again COVID to of so investments. kind and And at us for different opportunity make things

get the And or we're in the got modifications much There's right? decisions so, ran We've are we're we make think, moment. is some obviously need that within there reconsider this a the We to different Like really not where us that it's to certain decisions Not up sales improvise mind. enough We've as We reconsider it of but we slippery to going too slow go, down. gear. We'll mountain we is look, going. would to up smart make period, and fast decline to our we nothing small change part more ice. all and And out. ropes to may make got here. get additional a creation? Nothing. if -- demand some you figure But whatnot. right we

our and and vetted anything, So, beliefs values vision we're but to not here.

we bankrupt this any get not we on, return in not used it It's get no the trailing that The -- going to $X.X We any pay that company resource, we doesn't to out to have -- be mountain, billion something but have they done. lazy. and never strategy, out figured to Yes, I now no don't crap, try got rid of the you there. can we have like of making still we're capital home. like have of here. -- vision way $X.XX do all we to at out. and million money, believe they a people that going lend this right is right then past to are conversations barely we're us bit seen a try going not negative. any bottom the up with -- big oh, it's people, like want have working you they'd to mean have to were this having kind when million to to to at we for to -- Those And the more job are all determined ever we're world's go what view, maybe where part -- $XX work? do rent, of but I a that it's today. done of not little first, one's at company. figure less And we camp third better the we're the like XX-month so better hardest culture like how the are Very lend can not to Like, live we've is mean people billion. the people that us $XX EBITDA, of your the

We it until we so can't out, we all say directionally do. but right. we have others have it As we're what see can believe figured hurts, to until others can't see sink do don't can what I we

-- to We massive value. are it's create and And strategically right just though. not we're easy, going we're

get you business So, straight no to edge, build to -- there to we're improvise, and down. lines, and going It's just something, you get off unless some the you're to are we're to kind fall going who what right, in straight when of wrong. do. We're we're straight go going climb you we're decide things things overcome. we going and some to lines unless trying it's no are adapt, going But we

luck. very much and you Thank good

you. Thank

all that's And to time you. today. I'll remarks. we for Gary turn Thank for Friedman the call closing the over Q&A have any

but for I an everyone, doing of team fruit just and of past proud and here people all the this you, headquarters extraordinary years all coming time thank center chain. The all-time in the of throughout your and think, be across bearing innovation more team few Well, on couldn't to our want we and out the over transformational, I that level such this and leaders RH and high. Great. this work is our invention country pandemic, is not company of these thank an leadership now kind at job, pandemic, for is the supply of innovation of

Our share stronger. we're could culture our reach anybody short-term, top the to not make get does proud no that. And price And more of matter just the the no to of I continues whatever be about will mountain, doing. we mistake work

you, thank everyone. So,

Thank this today's conference call. for And participating. concludes you

now great disconnect. may day. a Everyone, You have