RH (RH) 13 Jun 242025 Q1 Earnings call transcript

Good day, everyone, and welcome to today's RH First Quarter Fiscal 2024 Earnings Q&A Call. [Operator Instructions] Please note that this call is being recorded, and I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Allison Malkin. Please go ahead.

Thank you. everyone. afternoon, Good joining Earnings for our Quarter First Thank Call. us XXXX Conference Fiscal you for

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

of I'd about to will start, our certain risks that of the today and release forward-looking statements disclaimer involve laws, the our we Before federal business materially. make other uncertainties remind of you securities that our issued like we within a meaning are These legal including of in differ press matters cause outlook our could statements today. forward-looking number to actual statements and that referenced results

publicly factors our we note only release filings a this as no any description or statements for undertake these certain that refer well events. results as these of adjust of call. may or our and this risk forward-looking opinion information of Also, to to to discuss detailed SEC statements future results. Please may during of results measures, the issued call, to that reflect affect eliminate revision obligation also in our today which financial new of our items. impact we press our more date Please the light revise release the non-GAAP as of the GAAP forward-looking

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

RH quarter our actually back at inflected partners New that as our to guest positive gain Thank most we'll challenging start housing most the market letter we night. build for shareholders, in in and the despite trends years. transformation people, our just to the at decades. over operating investments continue our momentum the history to our you, we going first our RH share our to We're in the partners from our and while your East report expansion several calling live platform you has from Allison. Madrid I'm To market York and Great. X across and afternoon, believe North Good people, house We prolific our questions. open are call pleased Middle demand positioned global got in opening in Kingdom, America the expansion significant product Europe, to and last to foundation building long-term in then United shareholders, the next and with everyone. Australia the

slightly expectations as quarter, for exceeded throughout of X% revenues post the our commentary first the million, of was reflected adjusted and up adjusted interest Demand hawkish once growth quarter X% the operating April. results in EBITDA Our when softened margin with margin XX.X%. of Fed largely $XXX guidance rates X.X% below again

dislocation. aggressively that and capitalize investing short-term also during pressure long-term downturn opportunities results, to it during us positions themselves of times on on present While put a the disruption

ceased continue that the Those expanding product constantly XXXX. the our to do into on our value platform we our will the shareholders. XXXX beginning outlook long-term significant and and continued the brands opportunities Nonetheless, furniture online majority through possibly transforming monetary of changing vast a for investments housing of as our regarding half demonstrated We towards weigh expect market reaching have generate operations are policy second materialize profitability. difficulty number will growing confident have as remain to

Picasso. Pablo creation act of an act is first "Every destruction", of

transformation inclusive are former exponentially the brand, expansion believe prolific of of more inspiring disruptive in worked is version We our history industry. in product of process and and of destroy an we RH the platform ourselves the unleashing and the have hard most to what

dominant include luxury strong, transformation Outdoor quarter XXXX plans our the market, with trends new market most to the collections. Sourcebook, product in RH we the homes Outdoor continue for gain XX outdoor of of XXXX. new and arrived expect furniture remain first fiscal in collection to launch in share Our in the significant

our Sourcebook The collections new bedroom unveiling of early arrived living, RH bathroom. XX throughout in homes with dining, across new Modern June and

RH fiscal the We trends throughout second of accelerate expect launch will demand of in the second quarter XXXX. further the and our Modern half

lift new the build The additional RH year. now with in starting second and also remainder improved the home demand provide through which Interiors collections should Sourcebook our planned quarter July in third to in-stocks, is mailing new to of to of an be and continue the

Sourcebook be mailing compelling Contemporary also and RH in an a will demand will August collections new trends. we updated value believe early proposition, with accelerate which We

new XXXX. the Sourcebook Interiors XXXX A RH mailings collections, and These in-stocks. second galleries of expected our in versus doubling Sourcebook customer Sourcebook the second third a mailing in will mailing circulation of additional contacts of half of RH Modern refreshed result and improved XXXX our in with are and

increased data factor business. should of Our the alone our that number contacts for suggest would lift provide another

done business we XXXX, know, the past arguably further scale. and an years, outstanding elevating can and building the that most you bath model luxury Waterworks brand desired category. profitable Waterworks kitchen highly in The the acquired X job a team in As brand the has over

Waterworks, vast other developers from luxury designers, market, the to builders. selling home majority trade the in the generates of like and architects, revenues most brands their space,

Waterworks to to years. RH how platform meaningful larger expanded we've a significant a our similar audience, businesses revenues amplify vast the is brands much has RH and of trade-focused the While are other majority We exposing brand consumers. to the the by business, the on by a generated there business over trade opportunity believe

a square our Our the largest quarter in plan fourth California, Showroom Beach, is Newport opening to in Design of launch with foot new X,XXX Gallery Waterworks in XXXX.

high Waterworks EBITDA today mailing that margin brand just is of platform. with million has believe $X to XXXX. we a be a become a also in the mid- plans developing a with will billion global for $XXX We on Waterworks Sourcebook shy potential teens to our test business

to attention expansion of the your shift me our platform. Let

the expand RH to a new American address Galleries transform and markets locally our North multibillion-dollar plan globally, opportunity. represents Our brand

more Madrid, in opened where expansion of and are which platform last all the Palo for including night. elevate our Brussels, X which international XXXX beautiful Cleveland now that and hosted brand in integrated RH buildings well-attended open, of galleries first we opening plus Design with product are Montecito, restaurants and Alto, historic North a render Galleries, opening quarter the plans galleries Newport Design and in The opening X include Both event Offices, bars. in American Our Raleigh, located Interior valuable. and wine Beach our

believe first opening locally small cities where the there our an The address of new Desert, markets California. is Palm Design in opening Studio We opportunity towns by wealthy Design Studios to RH in and done additional and Interior as larger we've stand-alone East the Valley live, services design vacation design visit and and design affluent Napa galleries studios. as markets of well in in as Camden and with some our neighborhoods, augmenting

Outlook.

While our housing throughout begins challenging XXXX. we accelerate market to trends interest expect business the ease rates and until fiscal expect to we to rebound, remain business conditions

million demand the shorten to special we are the margin transformation and adjusted it's we backorders important forecasting guiding points. Therefore, of to and demand demand quarter As XXX lack fiscal and approximately to to our points collections, We year XXXX and lead by business. and to $XXX approximately note X to EBITDA to the until will we reporting by revenue assortment, to investors can throughout that new reduce expect approximately increased year operating react due which growth fiscal the order believe due will impact extensive shareholders $XXX X so previously during revenue also XXXX. accurately both times. revenue We with million an be analyze negatively we communicated, of read our end margin each lagging backlog and basis during

Additionally, investments international point approximately be basis costs our fiscal to and XXXX. start-up XXX for to are drag an expansion estimated support

XX% expect a XX-week XX- We growth XX% range the versus continue of demand basis. to on growth XX% and to in X% revenue of to

margin are forecasting margin XX%. in XX% to operating and adjusted XX% XX% We range the of adjusted be in the of EBITDA to to range

fiscal to demand range revenue XX% in For and of growth of to the of X%. XXXX, forecasting X% the we are quarter growth X% second

and adjusted We are be EBITDA operating margin XX% forecasting XX% XX%. margin adjusted of to to to of range in XX% the

of business scaling and ecosystem, scale taste and the believe idea taste large are those taste, RH and with those vision long there is scale and view. the and no reaching. far and We with no

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

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

collection and Atelier other our decade. Couture, RH Artifacts, Antiques with elevate & Color, new RH RH the RH RH to scheduled the expand next will collections introductions launch efforts and Our continue over to Bespoke, of

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

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

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

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

creating in Additionally, and immersive design the and Mediterranean we jet, of expose to experiences Napa our private wine, integration and for and in our affluent landscape design luxury and RHX like and RH These and charter architecture. in is available RHX, Yountville, are interior the customers an authority wealthy art visit existing yacht new vacation. evolving and bespoke RHX, where that our food, architecture, Caribbean Valley. experiences

our industries. our building disrupting new the architecture This strategy revenue and consumer-facing and streams adding multiple landscape design while inside while amplifying leads platform, world's architecture, services of business core redefining first galleries, to the long-term and our brand elevating interior

self to and in home of we billion Residences, Our integrated time conceptualize spaces, as services market luxury discerning taste North trillion moving furnished to with begin consumers. the strategy RH full homes, time-starved deliver $X.X value condominiums housing furnishings market $XXX and with the comes into fully apartments American beyond the launch circle that

our the by depth and inspired RH, life and portal customers where the be of strategy of with brand. explore entirety online digitally comes dimension World an of to The our can

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

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

Our design, an ecosystem to any the dine, spaces unlike thoughtfully live travel creating and brand world. other places, RH, curated dream, customers products, in of services world and inspires emotional connection a by in

elusive, taste rendering RH by to an elevating our better that so, doing life be no than and is way we can Taste there makes ecosystem of positioned and valuable. believe And one more inclusive. create

what good few can't a of who people power know be done. the don't underestimate Never

For others by XX of to XX years, what lunacy. for heard done. we we've We past the being listen. And the past failed bankruptcy be while tell accused avoided us can't years,

building spaces inspiring others the shrinking largest have and world. been we've in most and been closing While the stores,

stock center it from the When we Pittsburgh in rebuilding didn't to we should time. was to of working home, home, be XX% retail Angeles think From to airplanes, everyone largest caviar, homes Miami architecture product hotels, Street bought buying, almost for working couches told we history experiences on most Munich innovation, Wall inspiring ready to ourselves. to When world. our Brussels, our new from Sydney. and beds worth us prime of to Paris, it's and to bellinis, were From Los Francisco the our London, Boston guesthouses, to to in San transformation to the

of reach. good Carpe what the be a can't Soon be underestimate power Onward our within few these the people. team especially don't done, who world will know people Diem. RH, Never

the up open call operator Now questions. will to

first come Forbes [Operator Guggenheim Instructions] question with Our Securities. will Steven from

Obviously, very see business returning to growth nice the to here.

the can see the if as designs of to of you the of you today, consumer? it the early. speak product curious as how early was can pieces? I what maybe you with or right relates out expansion So around sort the collections of realizing us of some it's it you themselves maybe to help opportunities learnings different are to many designs of But showing exposure success contextualize new And resonating the collections of sort signs are broadening sort the

Sure, Steve.

As a to collections homes, into have it getting reach some all are which put now to many just those and just so we're have lot we we trying relates to of being those when and context. new introduced, reading into book on getting and in the modern responding alone, we more that. coming And and early is

to new collection that that X bright business. years, collections assortments, And we best we have the I few The the collections. market business really XX mover broadly here, collections, about get permanently #X about our new And team entire a a is here move think news a the once are think the generally lot big, way I that every a and platform. our the tell we across things broad, talk resonates is something third. #X think about you those

looking retail or the top it et the will company. category the X/X If and top how our entire think try business, business, of the cetera, living right? introduce or thirds? in the entire and the you're if about in what's will part to assortment if X/X in and the outdoor business, top simplify third to lift in business, about talk those business the et the down business, room that overall, but our not assortment, the lighting entire any And business, middle can will what's what's in in the third, dining to lift just lift and the third We the the cetera. the bottom we think top company, the rug you business, any about bedroom of It newness third, you if

in introduce middle that mostly of middle the newness you portion third. If going to you're unless in neutral it's third, the be top

the is top a anything you're also what's And way third. you really third in bottom pull newness, the half is talk but is vast some this. to the the we mostly forward. if company's business. majority in there's the news likely focus introduce we half top have in percentage And The third, that's we about the to and down top -- in majority the of the the the on of top third, newness And the going collections and half, the the great top is big pull and in the cases, really going business bottom

reach third, always really middle to like you're and the we third but the third. top going business, So early have a bottom of

XX to if have out and well, So collections, you've have XX of have new But not you're the got XX. you disciplined [indiscernible] XX going way collections to necessarily be you about it. total to XX, -- think

kind about to vast initial really we're quite recalibrate a good. But excited are of reach We're have our of introducing. it. what really you So majority and recalculate

could as we like best do do then dimensionalize optimize you And the how in is by how collection, you be the moving It many from the so it, one is you many so be about questions, the we are of in just it optimize think key in it books many And many you functions are silhouettes there how and like on have the items, collection sizes then dimensionalized? how all that it, lift the the that you collection? Is do and fabrics, how Or presented can forth. online it create it? presenting how you all things how factor. at same we kind key fully How if us look and finishes? into the times finishes, variations gives dimensionalize you galleries biggest the within other even can that it's

grow dimensionalizing So that to ways biggest work is of stop there's The work actually that new business product optimizing lot the do. product. launching a one to product, and of just doesn't with the

to and optimizing the and factor. since been meaningful started book dimensionalizing the so stock collections really a those new assortment through And things. the lift year. we've market in last meaningfully Reacting going That's new the our getting and hitting

things So you as it. of lots think about

business. really to just we're and It's do how reacting move and watching here think it. about not we a we're -- then reprioritizing of and optimize we're it analyzing it half -- that sense dimensionalize and So work we're as best from the will anything in the which top

different can know many it quick large How digest And move of are visibility the so around? throughout like build of sort of into up to to do right? There's a or you what demand the That's many back -- Modern if a of into you scaling? factors demand demand helpful. year sort Like scaling year. shore don't factors follow-up, degree percentage confidence is contribution about demand into Like the many scaling way us of this maybe we back half? how of maybe scaling many have forecast, a you in sort and just of demand half to investors idea the RH I revenue as the think any large the here? confidence for how sort sort just still the the contributors help of

Of question. course, No, good really yes.

kind of lift do first how factors. half? season, First, you've say like half or the kind to season think got I'd think And -- second it's versus what's really you about of over about year-over-year

kind multiple focused X on. And some of as So have dimensions. have that we're significant factors there's lift -- factors multiple

year-over-year. is So and books year-over-year. circulation right? the So first -- the just the

year-over-year. have we doubling than of meaningful. more and a So circulation the contacts That's

Usually, say, and business. RH think way when you not the brands the the that of of early business you growth we're in expansion, early the in it times is right? really stages. the many the are stages early platform that to -- because early very The only have you stages at development stages don't see this of it brand. But the transformation relate about of in we're the in product to You

to because COVID. back during -- circulation had little in little want what's contacts. And we happening and had pulled we we you think had were So of kind about very we newness,

at point. we're see transformation. to just X/X going we're point the And of the past the Now halfway is point heading a point the with Modern, past of the we're kind midpoint, X/X you're to the probably halfway past now product

So we to second Modern second going half is the still to half. really have here. -- impact you're looking the

the XX have right? in. be also half. that You meaningful book, going outdoor to collections we second had new in That's the

A people because is think a a a of presented galleries, of Yes, lot but XX just year-round the Outdoor half outdoor else peak round. very different anywhere it's business we're about design new Outdoor business. XX We're first which have to from in anybody season, our than year got business. collections

true outdoor. a we're So destination for

about think So Outdoor us, seasonal have to for the not business, a you business. as

take umbrellas good and are outdoor them or companies, galleries business on then folding They out portion year-round in bring that they chairs the and and We're collection a a off. set off. Some and floor of of up two the galleries. take a they them some then -- they portion our growing.

X have X modern which book, you the lift significant of So factors. the is

in and to a contacts, interiors the book, right? got mailed book You've that's the in be newness and contemporary contacts. lift newness You've got significant going factor

second in Modern the half. second the the happen that of book will got mailing You've

Interiors that second The second mailing in book happen half. will the of the

factor the really a increase second the the doubling you've half. store more circulation And versus is months ago. half the contacts the in of this year got in one, and got which than of Then you've seventh then second

year, half months half store in second months store a this year last have new the factor new of is we store XX So which in versus of year-over-year. Xx the XX in second new months

any of this else, of or furnishings is say, new We It's unusual, you we say I'd right collections. may but me, like So don't have I furniture in if ones, any year-over-year", collections the they amount. other retailer furniture have really furniture retailer, data might We right? two -- or like have retailer it's took X. XX. home furnishings front mature anybody and home a might "Hey, have massive that have somebody

had a And circulation circulation to year-over-year. to going they're and going have Yes. year-over-year. we may -- going a they're maybe We doubling We're bit have have of little contacts

looking factor, introduced. And pages. I you're you're So year-over-year as are it contacts, significant in-stocks at circulated newness we've at right? that you're is lift other looking really So had then at lot mention didn't circulation, a looking a but what the X of

you I right? exact never guess. educated And have -- this It's we plan new are of have anybody dart some right? is, whether we hit the company, When and I've every you're plan. And board? say towards future, is it's board. looking the moving the degree the new center? dart it's optimizing every darts the and products, best the seen Are they like into informed the wrong, plan in to your how directionally take at But the it? are middle dart of are you key a

our -- we introduce like expensive our and things you're just the newness in our mean we -- don't you're mean a a inventory. to are lot risk going to you few anything I in change lot just out top. That's So third at product, online expensive enough the when everything why books collections. lot we have you a just transform top first. galleries and upfront. the galleries not of to When all you of to told a of unless generally -- quite that have test I we the get I very change take it's in galleries because have

because the into collection right collection, new a the when And we in and read, XX%, so we'll might of get a configurations, materials moving finishes, have, And the is optimizing on -- So with or take and history probably factor generally, of galleries the and read you or so a and our case, hit in XX% we're dimensionalizing and different that, write you something then inventory to in in forth. a you it's have get you company, big biggest and XX% this. don't enough have away be we a move different the biggest of it right? by might that process than more

no market, of think in Higher by It's of factor end the by a probably the sofa. the anything of cloud world. the marketing. sofa.The better different the X, sofa So and far move of sofa end market cloud to cloud than about is best-selling the the will the

we and furniture what the sofa, sofa And And is have we the had then it. wood it we we in We believe likely special we had however introduced cloud order. the many cloud of business. one dimensionalized in fabric supplies. and then fabrics

So put we on business did slope, greatly, fabrics, of our dimensionalized track. track, different a classic it, to -- wide at arm the it if the introduced the it We it, from we so Sourcebooks it dimensionalized did multiple in-stock instead you moved We looked -- it history We XX the thin then we lux configurations. sizes. -- fit. a moved did now once in fit we into we put had so and right, and we a of did forth. We we

big moves. way, what's are this do you head big a is kind making of how is might way people mature you the you in around business only to make. of all moves. business you those And The So hard make be big wrap their a and what this moves mature is can for God, do move moves and different

transformation in scale. key. and anybody at scale a size I this the -- business a of who's We're don't I know never attempted really that's have. So product

has this. have a new I've and the I years what is unveiling. is feel of of fortunate I experience it's that company, in that But this and like this in we're experience guess, this years team got a I category doing category,

think business. and we're we building you of little If it's And it might see at early doubling a just were doing scale. we But the scale. a to in our so early, different this stages,

we optimize into to how on move, business in the the we XX-point range be and and think bigger dimensionalize could it well we So how demand it's going and opportunities. builds, build quickly depending

then giving and at in store campaigns, it, how galleries, going we're the where so our space galleries, in right and in into going then aggressive advertising marketing e-mail Sourcebooks, campaigns, of And put we're to the behind get, presentation, amount on it meaning much our presenting finishes, in what's forth. how our so circulation it's it

how So about -- to it. think that's

So I'm you guys something scale. at this move scale, stick. I sure is seen have through it been the I've never never And

just time you do doing when the you we kind ideas, of say dimensionalize the which into spend list and the the you like should lot you business math, build but So these can a here. be and factors just dimensionalize math, of

in real when open We close. the what some in that a new over got got are gallery. pretty XX you've the things market. happens concrete things XX legacy a And take we in store more we happens gallery We're months the half. gallery what year-over-year, to time, you concrete super like when second know design a know We

got the would year and of lot also are I a We're -- doing different new all really all a galleries this point that. we're things that points data, have within have there. But not hospitality. of we of lot We've out

added an of gives business hospitality layer also. you So

next from Citi. Zaccone come with will Stephen question Our

new you rearview feel the for business How adoption? challenges Steve's the that in Where about I Maybe now you talked promotional pricing. pricing you the do And on some of pricing about up curious question, seeing products? Gary, are industry was the some pricing to in mirror? commentary the has on do like are too follow the -- it more on the you high. had broadly, And past feel got customer gotten

consumers The of not good we the I'll about book galleries -- about looks market or they think don't respond way the at that customers Yes. first it. buy "Hey, that our We've the because Steve, source value, the portion thing think question. I a consumer's they the any ugly, price, and of and work on the price, think our into how been mind walks anything I in around doing our is our looks don't No about right? of how a business way at say, we mind is one lot it we're is design product price. consume in that think buy right? of

I think are design-driven people come business. we to our because a [indiscernible]

sell we're end We a of We curation-driven business. sell an the you are you drill. not integrator business, and the the result. whole, We

they lens is it design, look consumers is If we an right? design good nobody the quality, they clicks good love it to will in calculation. so equation up order. this is value. And then this online mind what that nobody not The for What design and right? the me, to make or what it's of -- through the to really to. responding to perceive to gets great, try design design in are the consumer quality, closer is price great? quality That's make a a think at their value they walks quality, If that and

value is the design of so a and is really And pricing result -- quality.

they And there. so the of level if love in they think at the design and room above lot people great the a design pricing or got level and expect quality the is is expect, the you've they

margin also forth. market, have of you've business, so -- appealed and leverage, I size is to might and market, got and elasticity. lower, margin There's price there's you and appeal you can but using higher a -- to and what Like bigger and if If things business on do of higher, the it in course, lower right? you're higher there. pricing a where of so smaller Now and bigger price lower profitability a optimize

So some a for at feel work. values. good a disruptive really we're we've in cases, We our design at we're place. our really and quality, And of in good values. done we're feel We like lot

not some going product own me, if care was to to people. a always just want happy If look I a don't a I you of a anybody's you party She I if don't look of from lot the night. dupe just people. instantly, my didn't at just to We're copies knew I world can have in made I people, think the lost famous -- designer last have world few -- to read did you're to what not copied. you to so excuse talking I Madrid product. you happen to product. some almost a talked was talk just and lot today's talk I've fast, wonder but where get the it, at going them, its quite -- to voice I of

So my little going bit. is a voice

how I create what the Alibaba at and here price. does today, things. But he his going designed Chanel He to constantly short see he waste. a we something immediately or care dupe see an But think did idea of dupe a mean it with the on a you're can it said copies key don't But go model is something thinking they're you it. the world, amount can those is something in just you level a mean, own Dixon, time, was online. you things of and anything market see a very If in cheaper and the maybe almost Tom optimal I of I then testing so I at a he light was do And we're -- fast.

can't the you that's most waking of relevant, at searching kind our with So the best fast but offs. the of to is is look the the -- I always the customer most up, our market where price. customer knock followers Internet we And -- for going. quality think but don't perceive

at are no editing for time end shopping they're are and to -- are than I places that result. different really them integrating just is at think participation them. selling valuable the that higher-end right? in their and shopping them a It's restaurants, customers

is wealthier might at becomes they Because somebody the people really right? they're to them. chef, their get either else time going home making have look or restaurants more to valuable a If you nice food.

and So for that's is being home they're it's more. hobby out higher for their generally, a them. might and chef themselves, who eating foody at cooking have not demographics are -- or And be cooking they're a somebody eating they but else but and really delivered someone unless home, -- -- at they're they is

pay think people you do. you more apparel, for work And I do that's more goods other when of create higher ends think we at value the home for what them. time when I them categories, and

are we curators. think I

ceilings and and want a pictures to and on fully and organizing walls We design to in and sometimes If beautifully we'll so engaging [indiscernible] and a consumer, as lot furnished integrated put us product. interior teams, the house a product whole come on an go. our customers doing it's they're life in are can. the they close complete to on and we're integrators so many as And for go home, We're end in way. and we're we're them organizing home our selling far their install forth, of detailed ways, end as as coming

and some so In and on antiques we're for forth. buying cases, them so

pricing it, when really but sense, pay in our But kind good -- I right? spot. say work, for in general I'd you're think So a that of people doing is a

got -- I'm else And it's it. never might blows and you is priced have could too you to it Nobody it have low. fast. going you so a higher good, may this too margin. know, think here, out And has you price so Newness, unique. it

You up. prices might take

high, little and have might under a and adjust You it priced the too a you thought bit it's what pricing. you

fine-tune you're kind always trying to of and So optimize.

wouldn't -- Contemporary So X.X know, about don't it I well, let made that ago. the was comments I book, like years I

quite than fabrics I the smaller We not time worth things that market went things that where didn't attention at a the price I of enough about were it's challenged were and kind on it, just close just enough think we was it's that. sofas, some just to created a overpriced. that a would the level it's ago. the liked. like thought pay had We long And product have that we product

in launched. that Sherry It's sectional only fabric introduced that just sofas you $XX,XXX. our It make product sure -- It's not when price. at like some Sourcebook, to that to want we that that we that made had sell available in in not & not were a that Holland fabric in in that were -- a Well, stock going fabric. we're was

highest the can & Holland quality make Italy, world it in the it fabrics. you Now highest with made in Sherry was quality. was it It's

So don't if $XX,XXX. you I a would it, have workshop, made that same know, sofa to the trade, would and you $XX,XXX, in would have price they make it

added optimized $XX,XXX. have most a have of have so many far. than main kind a with far I different I we them them may was still buying those volume have It's better them and fabric, products. we good just maybe anticipated. smaller They're smaller the We just of than still went We thought It address jumped as about as we value. a -- too generally for in showing and they market I think them some we we're values not and have part, But the of mean, think them. when them things, all. forward may I we have for We

and really not the the throughout, made them And we like sourcebook. but presented as them those like wouldn't we and would items front what quality as as far we're of use capable things business. of very have piece the have unique drive It's that them design in to sense, communicating and

ago, we made we again. some now that learned We've mistake make won't So X.X and we data have mistakes we from them. years evolved and that

price We've macro luxury the somewhat you from on you follow-up Okay. is I would looking here? Anything macro in engagement in turn But over? of I most for on homes appreciate all helpful? here, inflection the here. are the category an what else a you're metric a mean, key return. be seen perspective, quick that detail. the Hopefully, say could the focused

they funny. X%. everybody inflected that number numbers, There's that up. what was other right? retailers say don't it association know of some greatly, vary is It's I metric looking luxury And at homes have because

ticking some data some any been so that's sales. of that cases. be whose move in right. and move sustained is up don't to don't the the down come And meaningful in might It think is little there's I luxury pricing a starting know because I home

And consumer think -- got in you've if or there's got you shrunk homes But sell to a sustained they holding remodel to had a market meaningfully long then got the power, someone base like a interest know rates, a you've a And that I move if how building hold burn rate, it? and your flipper, it's starting to market. who I in to and high in don't home it. who sell developer, and come bought fix don't you've this down you it can where something is home and especially because up of meaningful go

interest I began around until interest up think think year, you've here move a bottom. it I we and got kind this cuts. rates. will we meaningful and little everybody expected the in And of And ticks I have bouncing rate be X there think

rate only but map says, that on X are was a there's the kind off. that always I like like based the to where not is I today was and looked cut. figure way off. now pointing And way if because we're Fed how XX-something That's conservative, it's that they the priced we very the one cuts going right? of cuts that I chance months percent more think months, yesterday's that think you that That's number to comments at in was the market a market think betting, few have think interest I many

X and Everybody we'll on many went Dimon from got you He for If I think say time talk his to said, think about, I to be world. he says, of listening the I I Fed's interest how hike to cuts the forecast would he need need the in out think who's tough while, saying, him have. about be we'll don't about going you Paolo X, cutting quarter, think mean rate Jamie there commentary rates, them shocked not should rates. rates." last for think first waiting hike "You And cutting you And to we interest then should not don't

TV be bank as world should the to cut Fed the best independent, in as times, multiple much if the you from the is rates. best supposed on banker in is not saying mean I world the

to inflation business rates to I they that And oh, months, when them from X think has that massive mandatory transitory go on influence couple it's some in because a will and interest not saw call they of should we listen out and thought, may and told X the they to went X. people back Fed they it there view were inflation on of a I curve behind the little put point They thinks. what the I

that think a of out just I But there's there company. that saw lot now. noise right we so And

a there's of think lot on the Fed. I pressure

inflation. which the curve, the the And to behind be they dependent, Fed right? Fed seeing means the will massively behind be is think on I going were so curve data

be curve as rates. it behind is they'll the the be relates interest as relates cut it to And they'll behind its control. assessing time curve under I think to think to I inflation

our So quarter view more bit than a is ago. a was it probably negative little

would little I to would meaningfully more optimistic think cuts bit housing begin market we sustained the a that a quarter rate manner. a in feeling were there ago, be in move

may 'XX 'XX maybe. it be until quarter or think second not I

in there's a sustained interest So don't sales these think be to going inflection I rates. at home luxury -- think I

factor. interest rates yes, with just affordability an going not It's down So

X.X%. when XX% simple prices years. affordability then interest got years XX%, got and XX% I just rates COVID, compound home You've have the higher it's last Home prices up you've in or more post-COVID. they the were X up continued they've XX%, The of or went X roughly now. XX%. mean X% prices loan XX% And X.X% to to now

people I put wealthy. bought Yes. the they the how Yes, of you I about on when don't hills pay it's There's reported, cash Yes. mortgages sales, to talk there's They York in by Did externally [indiscernible] cash Times mean, such [indiscernible] homes. a couple I at get you to them. I relatively is that's a pay price thing "Oh, wrong on Yes. number home? I people trust my at I'm Not more homes mortgage buy I are. buyers. data focus care wealthy can't have stupid on. they paying can. New cash wealthy don't a homes. own them? And Did of a Did cash other for them? the Malibu. cash in a say, they like their way, any home lot for But the home there's just

of buyer. of any on they as reports who real estate association the brokers a cash stuff, did did But record me this retail

You're not cash. one's -- pay really No gonna going to

more have your to generally think you money on And your money because right somewhere never right? that so data You're to make going homes is a else, mortgage either.

I Like data facts, the the sometimes data we always to up XX%. what from luxury the X% I are but what is very one some parse know don't said up were part is I say going there's Redfin you're reliable because right. is saw Fed were and So right numbers get know, now. real which Another home report don't reports homes roughly luxury homes on -- said people credibility

Gutman Your next question comes Morgan Simeon Stanley. with from

and thinking happen and with leverage? about that variability stable Guys, launches outlook. the Gutman. better roughly and in about half, want sales the new the better gross gross pieces, curious margins margin I some I guidance simply and It's to and the then into the torque first, ask is if are Simeon product expense everything then And it back is lines two segment if Or there else margin can the still gross could then and it of business?

coming had you're be We [indiscernible] years, of X Gross stable. margins career. lot in, to in you're the new of housing markets goods I've worst my seen others. to have in be in and you're And one XX worst the a going wrong right do in going are some, on relatively

you're industry. And have that going so the react just a to promotional always stuff. higher to to of And environment going there's than across some to be

pretty going I So like moving think so you're a is to and mix but always confident going market to what to mix carry -- got look inventory about higher of margin like. because kind times promotional of you've this, percentage right? our during -- keep the we're

on up little. margins meaningfully, likely performs happens wrong buying product really right. than that on-demand No go a if a margins we're a demand, we're little meaningfully down different well. meaningfully go something Unless

it margins higher have poorly. to going performed You're than

but we think -- margins the risk say half. in I have in I'd lot second don't So a of

variability you in our margins, obviously, that we there's models revenue. note just, and have your Simeon as look guys build at -- just or growing quarterly our

same the a can sense. the stable it only remain extent are the So to revenues in

grasp I midpoint necessarily We're versus I'm margin there's think fixed what the know revenue QX's going gross obvious, flat. not when if product I you're when a to again, throughout quarter growing is that's occupancy. Gary a talking have margins but have think about QX, like example, saying. which year. a nuance lower, building that's it's taking firm of the margins gross obviously, different saying I a was don't I'm model, here

You at looking our know make to you're sure to occupancy. build your trends models fixed just

Yes. That's helpful.

cadence to and with you business all mix just I'll isn't then... we're the normal but guess clean through part related of now variability new occur that worst So the the up will trying with that through has to based ahead that were clearance there meant I include older current follow-up. piece lines. we're that, to I of promotions that some the be I Like of and these guess, the to app do whatever product, and launches on the of of portfolio clearance and legacy the

worst product through we're the like transformation our it. middle biggest of in know why going transformation, history. don't But that. of we're We're the I of I -- the half wouldn't we're the going of the kind you of product say through think just on it, in we're in middle second the

T-shirts the table it off. go selling a flies yes, just in away ours and clearance put is doesn't and it a as So on clearance sweaters business where like

they you need new business, like bed things sale. will I'll transforming if limited on new it's need you're put bed. moves, sweater, but you're if don't another it's sweater. they don't clearance, a a on People big a home new buy sweater The making don't are when people we buy have and it a new

on another sale. don't bed just You buy it's because

like and categories. clearance categories sale than different are in other ours So very

move So to through. longer cycle it a takes through and time

TD Max will with Our next Rakhlenko come question Cowen. from

Great.

outdoor the just then new will assortment far galleries? in about comes how as we over and the years the get the from shown Modern And the the the galleries new first, galleries? product? just when curious, in So past today the versus we should the the think And being as inside products year the how evolution products much then over of of legacy more launches

in about legacy XX% about galleries the new amount. galleries probably same Yes, bigger and the the

winner going you upfront really you're to display big galleries wrong, you about right? volume. you're buying buy level that and can you're And and buy you going impact really a be If it think is that the going you're really not think we negatively margins, we're something quantity of in sure because how buy something newness to all unless think generally So that's to outdoor, to like the put to wrong. it

If we're somewhat we're to be move they books -- of newness. -- we're complete buy right, we're there, the it to out that to to most less just may heavier week, So than to the galleries want quickly it more getting buying complete? mean, home anticipate part, sell big, if quickly. constantly But I for going in and this we're going bigger Modern it's we out reading be And kind is right?

Yes.

the pipeline that We've early of on a reads -- our mailing as we And to the couple And weeks in this again, it's have A X-month -- We're business the about of kind and got of it month, decided. demand sense the week probably there. designers So -- of we're the that we're thing it a pretty already get already then with first kind started a good online and get booked. response of our periods. mix it reading to is out something. projects consumers already are of of been X are reading then takes lot working in about books. of week or kind over our is to weeks and lot

get newness And this or might change quotes. work that's may says, done. this so Most or And you all consumer already they're "Oh, that's change change got the change that." or building those orders. say those and sees They've that or may part

it So look trends a and versus you weeks early to X already early of our trends is about what those of of kind see of the big the kind part in like demand things. like pipeline, takes other

new Those factories write that's us those months of big how to X will big X then questions were one additional rate. just that to while probably to is the the by like It And right? full orders months of collection. and open -- we're run about depending but I of to up think take If capacity redefining we're going vendor that months see it X get Do ramp demand think buying, week X takes X get ramp galleries making may make we on usually take up -- to And had -- of the then early collection start kind the bets kind start in on to orders new collection that X we're and kind additional that a you build. us we'll to huge vendors seeing. to it's some said the to buildings for we new to the the XX.

the you're that So in, lot gallery much factors so newness have to that There's can't time. of might to believe there, other have as going floors newness longer out on you then takes But that you XX% you a so the you than we're newness say much it. be you're that I'd about can newness coming going. put in, today. you comes a transition better And first

Modern there new put be be Maybe. that into going in lot galleries? just a displaces there's data. of to something So the the book Will something we that

do. us So the kind to what math tell will of

a thought. are maybe thought? XQ softer what demand then you follow-up a or but the just a coming you being out later than books but of was not delayed, And some bit -- little to And bit that, Got initially it. little than delayed

little doesn't your you to given the sourcebooks, look outlet revenue. to And like year remain of how guide? and releasing given business out just been level the demand demand be there's does able of timing it curious maintain you'll just the a stop then that just full somewhat the confidence bit maybe So pushed a separately, choppy

you what first that be revenue could if would that So share quarter, the in was great?

usually yes, don't we one-off. do Well,

we Yes, do one-off. don't

to generally one-off contacts. I is lot about not the based and good. response books doing and lift level be in all that. first we and But look confidence. think to think books cover later things additional the of to going we're the about talked like factors it I slightly factors Well is what a see on key Steve's reporting not like We're newness question lift at the business let's And how consumer the the the the

on we it should the a have So newness a have that. we've middle lot of data kind don't of got view be. we're of generally taking a data of -- kind of We down but the what lot on

numbers confident we we're So feel that numbers. out are the putting there achievable

a things rate prices us that some or and that And we if for other dropping more meaningfully in housing we the the tailwind cuts up, we of get if housing some interest market interest can I any be generally reason, worrisome some kind see have behind market tailwind. picking right don't they Can feel was ticking little But when confident would now, doing. headwind know, about of But up, it macro-wise? what looked months we about rates. we're a report couple maybe have since raise ago the now. latest inflation to

we've time, been been here this -- building building this And we've and here all a long company business.

been time large. the So do -- we a time, But have the this first a through at lot transformation of it's experience same say doing it. we've I

new anything else there's inventive level do and that's level a innovative it's greater -- and reward unlike it's not greater and unlike you and of So of different risk. and the

view our is this today. So best

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

changing So slightly, Gary. gears

get Just think don't a progression I update, in then curious little guess, talked concept the if And bit. on generally, an timing and the on that's something the we the call could the ecosystem. I of Aspen more we've about

Aspen ecosystem?

yes. concept, the generally, more And

slower to Yes, It's we than yes, going yes. anticipated.

time. to the probably things moon more taking easier than in it to develop Aspen are is partner likes development Our on say, and

Mountain during the they Aspen And because slowed that. so it down everything, small is backed and of a up planning whole up and track. lot But the bit. of disruption we're is kind in our lot COVID, a their us a of -- slowed town turnover that's look we of down on and had and had then they group, and House moving of at kind

a coming big and retail. into the Our And It's experience name It that of we're affluent a in the a levels for such X-level House global of customer the Aspen, whole you gallery two to, global wealthy will best not Mountain is because building corner in there. concept Aspen. of customer. RH world kind think, we're get going I get there be

a we've great got And restaurant hospitality experience.

year. now, standoff of kind the and wall We're track right? then we like homes next or the when of on the next it the do slowed of homes not want down that's to guest want historic, in what build interest open the at this And the the are will in the to them we some that market they of are if of that. That historic want rates getting arguments it's we house versus like them for put that. market in the some plans high. historic We as on keep right uncertainty down and us that and a year, and things So because just build. So city on to on process the not we believe proof slowed and

-- be like rate interest a for also developer, taking going think but and are When in for your we to So and small higher it will and us things developer, partner. we're cost you to lot an our so and develop happened not all difficult capital and you're It's that thought, you're a and a build is of there, than be longer. going kind And town Covid I have but slower of things a progressing. move.

homes things value that little think like a long-term taking it's don't usually bit. anything there We of and we're our with on So issue some the Aspen. time in there's time that,

[Indiscernible] we've on a anything, clarity If before that. invested invested had come had great timing. the before we COVID anybody

we've So made X already. and our money we or portfolio made probably believe investment Xx our

that. more. what if in we did a is space we it will little about the mean of But learn to do finally. forth. today, we We'd and we But lot heck portfolio for places we now have some about worth a quickly faster. and resume And is a of shape can we our taking so liquidate see and to albeit moving didn't I So we're the the hope But guest excited wanted house everything just idea soon. construction go House like it. Mountain

I quick think, -- your or also comment in to to make Great XX grow a that alone the could more I just think then you of products like correctly. said, I maybe new just or just hear. Xx. want And It caught Gary, I that sure sounded follow-up. Okay. points business, terms

would I I be able just maybe of just guess, just, or range just to you kind misheard. clarify So the

As think Curtis? far how factors, we of as lift

Yes, exactly.

Yes.

XX XX-point aware And as And we I months just people they be we the lifting And account, of the all are have through the store versus the do don't to factors of half they be restaurants It half. the to it see going right? Where XX a all we business more And the just can the volume getting hits. when you new start and move range, think going as have lot do second much not that right, take a second new business. not was us circulation in as galleries, to in may into lift X, right? that lot they're we bad.

think highest are volume And think new so small and is our we're L.A. Waterworks, that opening might showroom [indiscernible] York with you -- even things I L.A. --

York and New L.A.

[indiscernible]. I L.A. think

with Totality yes. Modern,

Newport opening Beach got, It's to Beach Waterworks our And furniture I a of gallery a space within feet We've we're got after going ever feet best built. and in square County. going furniture a the to biggest furniture. The outdoor X,XXX Galleries. think, so Orange probably like Waterworks XX we're collections market. and of gallery The the have Galleries have outdoor XX,XXX kind XX,XXX feet. the Newport And Waterworks of we're is -- footprint of doesn't

much even Waterworks Waterworks about big, that brand it's business generally is opening near but meaningful like a lot it's County so Orange number. Los Angeles, County brands, if Angeles, -- Orange does Los anywhere in right? to do you as does for of going as the So what And a be it

to going about excited and it, everything it's we're really really we're a to launch it about be validation. excited and they're So excited good

just You've the book. book, got right? modern there's book, a But temporary lot, a interiors

marking but we're it we've ordering also out. reacting second round have those all doubling all cycling, The missed read newness, there's We to. newness that of Xx might up stock stuff have of the of months. of a down it Modern, getting second all and a some count into we're lot first We're And of then store in now you and new mailing there's and and lot in a Interiors, cycling collections. it that and mailing got when circulation

-- business it's stage many lift as seen of this And as like ever the as many there's factors ever a seen [indiscernible] just have lot I've you this. of in

just So looks different. it's It it it's -- different. I different. should be know

same if So i if you questions -- ask nothing surprise appreciate the was guys. And all questions. me could the

next with UBS. from Michael comes Our question Lasser

the would as your light or in of challenging is, not now what's maybe now some a does you introducing you we lift newness further the how as because of it credit given and are Gary, on? sense And recognition from have in the as customer, going that might been of introduction the to market much make getting you've much from innovation delay get past?

said, years, you maturity, often. business -- you new collection, make Thanks X get of get probably furniture lift we're or in don't past? some I -- Michael. get we and get that's me question, our a sure [indiscernible] a Let or in better new a I like size fact, bestsellers kind newness right, you right? did for X from cases, getting the much a and the we big a Yes, XX in getting collection like very are as Mike, every that in big a the of as holstery new

amount and getting, of wrong. certain We of certain get as as we're So always amount right I we ever we're a think, kind getting much a right have. of

maybe probably So I all-time kind like #X, better the little how you go because we've kind everything. we're past, a changes think you to similar of when of in a new get that been we're

So some and the to think, right. introductions, delay of I was it the -- does sense then make question further new

pushed modern much of we So challenging the really too product. pushes -- trying customer contemporary, a and book market. not to pushed by didn't we those of between the book we We're like light which push then overwhelm We month We amount a want didn't to month. a kind next activity pages in anything. spacing certain Usually, have the delay Interiors. of the just modern when by

whole last reason X design, from spent graphic working figured night an this months. going at and we And believed the could new take them delayed "Look, this it, it And It's connected working and while we and we we it is on was format. connected, we're significantly months of said, we dots how out because we the X-week felt party. with it. But some couple new and do with worth Madrid, math, saw changing worth a doing the we're exciting X it. you dots living Modern us But who is make we And or designer a to the were delay, whole a better.

put think the I out I think book we've And new it's there -- history. most exciting in ever our

I elevates brand. RH the think it

track merchandises it's it's and I I it graphically designers. beautifully, beautifully. think And to consumer think higher level interior presented going of a

we "Oh, don't I just like our we usually get where we I as more yes, go, spend -- done let's we it. of time. Like can. kind So want don't that's delay mean like to think work

you're when I think innovating inventing. and

to things new the all time. see You're going

new data. you've new on working You're things, got

it hey is I know new book it, if the we the and -- products. integrate You schedule. There's pursue coming. to and iPhone level new that Is was to anybody enough don't thought dividing And on that, we turn is important and and than how X look that when around another new we more working actualize you're usually had. not and do knows sure I'm no this see do we in. important take that's new on corner it a and that's vision a you different opportunity, weeks data take work that the Apple exactly and

We lot introducing the book newness, introducing just book, -- this you to it we're We're it's might you why a date better. could [indiscernible] of we and date, we're said, with a in just way you're we it decisions trying making we that's compelling and make iPhone and or thought a let's time. iPod And newest -- while kind see on keep to learning that going. took think this more present significantly on a or this of building way

the which it going the because Let's worth presented, to take life be how book. of it's consumer how what's presented it's to going sees the It's be time. it, way whole for the now

weeks So is a forward. move later, demand okay, and the it move book X from of X month bit there's little it does

take it, to to X, going x it and to done was you and move X Like thought around thought, things weeks we're is be right? this you If you going still and have if worth hey, going wouldn't more be x. worth it's

those give going But you it. life you that to X if do wouldn't the You to presented that and worth collections it's think you now be book the return. y over is pick how where of think you and way, going a that they're better

to I you going satellite things but get came to put so Tesla networks all ways founders And was is -- one. kinds is doing of the we things almost that. totaling -- change places sustainable more world the I and that's footprint what going all So much energy our change and doing change make Elon that's I on that's make like -- to to that they I the roadster mars and live It look, and order and incredible creating to how excited, to love wanted this and right? mean out, when I Roadster, decisions nutty and right? world was those things, I carbon the doing mean, wanted Musk the

And you had almost a I or to got think put I did, something like down that. year. but $XXX,XXX I to wait like

don't in know, X years I Well, it [indiscernible] roadster. what a is tesla

you ways. Now but and things. I going now And that's real on don't to want again, give didn't delays of being we in delay. that out I'm [indiscernible] rigidity know the But way he my Maybe come long? massive money it and don't it's don't delayed a happy to but evolution I why innovation like better like worthwhile, usually, have get

down know, in launch You book. say, and a want think you either a months wait and we going not can that simple you at the the I it's this, if really If season just do to X the book and to see going and in of it's year that it. working next about pipe, comes order -- I next wait to early, to the a late kind can -- can or we "Yes, like book math say product come on for, get we're weeks next going look to math product not in and for books and and way consumer in the months going it? They new or to say, XX for consumer book the say, a we're it going can don't and later, put it's something do gosh, let's we're And you Okay. it. get the have all X it's

So been we to it's made better forever decision book make think it we would be forever. have a not it to weeks better -- or as the good us X longer, going took

the that's look we So through. lens it

aspiration? buying Is does follow-up on that conversation more Got think change that you in is, it earlier about right? My RH's the [indsicernible] per long-term is that this -- you mentioned And evening is so the how b, sounded consumer path question like to is a, you. margin that our promotion.

category of housing, they right? now, if a any that's on saving and homes a massive like Apparel I down, buying of in I not housing higher homes. benefited to instead new and housing Well, people recession it's anything tied down recession we're lot -- has in -- money, that, or were we in yes, like based are massively buying entire markets it think or right think recession a this like

it's goods honey, some have spend But buy but to go buy of you heck, new to degree purse? you sale easy Sure. on always. higher didn't to market. want Hey, money we in easy it's a It's down a -- apparel. home, are that a trade-offs. So always going

you're is have to going And slower, as more markdowns. demand

You keep and on forth. got inventory so so to moving

margin mean, margin environment in post-COVID not strong guidance unbelievable. the change but up. long numbers. demand it's environment good the years, for all the as doesn't is term, factored so environment. the So on those example, short demand environment, it I demand COVID demand based was how against into Margins guidance that's an way term. the up went category The our because the just

Then compound go market that, down. worst in of and top to XX on that down going years you the margins you're So housing margins again. in go are

that. So more all it's nothing that's than sense. relative hope to I make demand.

Totally.

Next from question Jonathan will with come Matuszewski Jefferies.

an you with get Gary, satisfaction trade how brand call, bit consumer can acknowledge end to a of progress some last momentum end we update the slower is I with the customers resonating with the Europe? consumer. on with mentioned the in on think the

as could So your group in what anything it customer or perception seen to would awareness purchase you share be relates insights of to maybe brand intent terms overall has or helpful?

and England just all team You're -- for sat the RH listen what's around is back Madrid sitting table. to [indiscernible] RH learn of great before to We're we in there we before, there. talking trying we RH going right? done England -- opportunities, We're know we've for just X-year celebrated didn't we don't insights. event, like, went we don't know several just I consumer it's our have So at anniversary it think Yes, the just kind we just that with and could RH we were the to the this England look hours, got exactly, know. would like. We identifying and new guessed opening in -- we and what sold look never never in what look, to We've countries.

in couldn't those countries. buy direct You from even of our brand any

So why anybody RH. know would

interior awareness build we're a right ways the do served to how respond in fastest just it, are build the think, way always all lot of learning physical believe the presence brand? it, brand, so have design there, to And market it, consumer about things. we services, we kinds to a be We what through way the can people it, see is a touch that's

but of kind is so London where started a in would through you knew said level we're conversation we RH say not lens going a in something optimize opened of you later. trying to and was and create would country elevating to side we're trending of be. right? you're a we gallery after thought be an decided if impression commerce, several something a start, in brand We're versus It's inspiring I'd England, for And year, the the we we commerce. to to do incredible London that have opening we where thought like years And at that the where and that. And we'd middle the in first [indiscernible] got. and we've Park Deer do and fine open architecture XX and there? with Yes, three what XX restaurants, countries, we on library, lounge stayed design acres, Yes. else yes. let's opening have

get architects this on English especially but to go and conversation. And first and first lot create there's summertime. be And was they think where and one and first, we've were out of really ever and and by we And but but now weeks people going a some good order. have as a we conversation, opened not be probably And spend are greatest is deal Paris good in a thought But the we and year into the expect. Abercrombie. And that London not and build I open flagships is gotten locations of places, in of lot in they're Dusseldorf, the the were out opportunity a their really a [indiscernible] first created say [indiscernible] an the brand strategically investment to during in list, liked some wealthy lived. locations. thought. closing had not [indiscernible] could knowing them get where were So We of there stuff would there done for to to to those. convenient, in those want we we They of we've we been we awareness. infrastructure would great kind wouldn't they our to of Munich what lot business trend Brussels have really weekends

Spain. of the think biggest Milan one city in Paris is and is get Madrid. even for in and in London open and Madrid key that cities the Europe real I us, and biggest the

to think we're learn So I more. going

build some and the conversations great forth. so the and Just ideas people team, we and great yesterday so get from feedback had more on with to business and on to our the how gallery

the not we but them, entire of across work actually Europe U.S. the some and think market. entire only entire -- across And

really team. from was time incredible insights that an our of investment our some design and our people great people in and great. And the So of

And what shift shapes, even products having the versus then in do we things kind chain products times what to lead stocking right what different the the just and and for right markets, delivery the on how and so we in countries. like are we're times. certain things U.K. U.S. sizes, faster and what right things of sizes, stocking What supply

got really lot So are teams there's some galleries, go as it a people because We've we great the and about and the the of to say we're lot we're think, smart, great I a more, and I'd we've learn. But feel feedback and just got intelligent, -- The more passionate people outstanding. better learning on I better team, yesterday. really on all team.

ever view been think company the all new company. presentation in everywhere, from the it point and I great. the design may of have best we will execute stuff and and at like think and work a we whole our Madrid, mean of to like that and interior and gave take vision I galleries impact I us mean how level and the Madrid styling are in think set where a that. I breathtaking. standard to a done And we've look galleries just

we're -- we're So look, opening, learning. we're

And our period Our summer business of kind pipeline is the galleries, we're building. now. Every spring one is of filling. design

again. across going start because really more England to So platform. once we're we're learning going there lot in out start And people a learning the

hopefully, together good. And awareness next really that. brand and I then get are year, us. end London, all Milan and buildings bit the And of Paris was like believe stringing say and in now, a little after and looks And work we But complex. London, raise stuff for as little year next I'd places different We're year. four think that massively at So in right like a we open those it going to spring hopefully, the Paris that. next

prepared you was disruption like And that witnessed then follow-up. Based concentrated well. as furniture a it remarks, a at the helpful. In price mid-tier just more mentioned this operations. really brands the online That's number our ceased of felt trend on growing We've points. quick observations,

So see are premium you disruption competitors? your online that the for space, comment on was super vanishing? you so brands foreshadowing more seeing Or in that horizon upscale

Yes.

-- don't mid-tier definition there's think I lot mid-tier. think a kind -- I know I your of is of of what's like,

of that disruption, we've are look-alike more lot of a a call, a of lot targeted points market, lot stuff price not and there's are higher-end think is may a seen. ones going of that players overlapping ours things what online doing There's having people are there's like A I lot trade that press market, lot a that luxury a of I'd it's lot to, the but some of to that. overlap. be at from

there's petering, housing you like But market, or of consumers. lot they especially many are I probably I I not trade I added call, what So can't ones a we -- market brands compounding XX% credit referencing of blowing with higher-end of now have market, think up up. a are get the money them, difficult the just or really kind this, capital or know, of a targeting like XXX, XX% easy really that probably blown when nature like customers and tough higher-end don't anymore. But market there's

to just odds So profitability and that someone to like of money. In because money got to to kind out how free make market there's figure else there's you get real not no low. a be lot a -- got And furniture the of non-online is brand a that's why floating. this, going -- grow you kind think just very even there's gives I spaces, blowing the in you've people lot money to up. quick retailers, retail And

like this. through people end they make a that it management didn't their went market through higher got Gold You've Mitchell the in like changes in last business

it's is to more to So anytime like that see going disruption. look back -- I soon. snap going think housing doesn't and we're the It market

a market that today and going from attacking of positioned think be so view, are that's and of kind a disruptive businesses value we've got going the point get nature the more share. lot that and of see disruption, product value you're -- opportunity. Yes. going just that to to we're the cases in undercapitalized, And all some more there's So I better to of making much the money our how some of we're of to able that we're not

from Our come next Basham Seth with question Securities. Wedbush will

you've initiatives? it the Is else? from to macro for clarify, negative more the of quarter benefits reduce on see Just seen that outlook ago, there a Or year the is but because more little you financially. Gary, bit just a didn't something some your

steps a in think step put macro a another business. -- bit, factors there's lot list but real little think off or down. it's don't don't going really Yes, I to builds a around of I the our can going us -- to it's I our move we haven't bounces -- think unless factors

be bit, shorter-term things housing or So a might a market move tougher little some little may not there be noise tougher. quarters, within might

a and you there. applications like can those in that, If bit at fluctuate mortgage look things

we don't really a within to a better. lot macro there's think is that I that some year. noise going think But get So just the macro -- didn't

it's needle. And move points, than a And cut wrong not about is even more quarter if think what the year, even or so get we're this that macro to interest rate I one to going we if the mean than they basis I right XX do. going go

X And There point a We cuts, for a know. ago. cut, don't everybody we're or too but thinks for XX% was so might not one chance interesting. going I XX% -- it's to long X get get chance a

you the we on the get our of and we're we're better. on all [indiscernible] the But try a it kind lower. we take I going hope not our We're we we're business. it's views are we getting at it's really macro We give and -- to it's macro, we [ for data directionally going in going our of think get don't we'll doesn't see take don't to best into go bouncing just what worse, not -- price is look the on housing interpret in bottom get We around today. ] now, think it use bottom and trends experts. bottom, and you're think the So view to going the when mean and market like worse, better. Right kind to but bounce account the while. around to we

I think year. it's going to stay about the QX same next through probably of

Got helpful. it. just And related a question. clarifying That's

previously in growth, You talked QX to year-over-year this inflection, year. first our peak peak

whether sometime of it's if in Now you actually 'XX, I'm peak early back the sure see not XXXX? half

Yes.

can product we've the think a now. dimensionalize now. We how we that we're it's optimize kind connect and we -- more dots that. those mean and can things seen more I a lot of got interesting And -- are lot when can some now. real I winners see emerging, see to and We

let's that yes, let's first peak get So I I'm RH what. like talking to of look -- the when the We -- well, -- going that's define right? say inflection. our -- macro, will kind product peak peak stands about inflection of macro, like

we will will all just you some pipeline view, and that just And probably 'XX, early It's point now how in The about can stop. -- moves. big that. And got what like to more things less pretty can early moves going we'll many point but do. platform a optimistic We're Madrid at the likely -- development we'll -- we late some just could that say, give see because see 'XX, not got we've the keep us next looks new got and well, reflect. you like 'XX, a of about to we're start I'd we XX new And a us better, 'XX point So there's making, and getting pipeline looks and like newness I'd kind again, going and a from more is talking we'll have -- we on really can give open, we're Milan like because view, start product more to quarter today, the like. say, right? think I'd here, London, big from Paris and we I more "Oh, big optimistic we've from updates I galleries business for it think right?" So or think. say I'm of say development two, yes, more it's some a like big get of then and looking it's I that feeling be we'll peak years But lifts like pipeline

soon you're friends Like a You'll customers, like people good that to coming get -- compounding there's of from a in where you factor and more factor. And grow compounding got when think we're will with faster. a friends more and Europe that's night, night, factor factor It's once of more right? you, compounding night, compounding of you open a restaurant kind and It's the inflect awareness, happens different tell pretty job. of then doing I they next think It effect will than really next starts I core and the start opening consumer no it brand. with have in haven'ave to a becomes full amount Europe, -- faster get to that the you grow they It guesthouse. to customers the happening acquire awareness going the restaurant, business. our a compounding tell significantly than

here of of out only and it a right, stays tell now Our we the want -- to ran it people got relatively friends someone wrong and wasn't was at too it be lower about you four zoo up. it because two they ability having of our you about get then accessible. not staying and right people And making here we've get at four like we we of to an it privacy didn't that's a and I luxury, occupancy even time compounds to and the that sent level something friends, full guesthouse, pretty is and about ours. wanted one friends it, it building because significantly And accessibility they and important doing be better. brand about filling the and soon those beginning the stay thing and just we think rates tell in it e-mail

investments got way. we There's Europe, no have really right market don't U.S. locations the market. is knows in making everybody the customers. to U.S. have -- Europe to U.S. even in You Europe the is because in the physical now every that because hard to especially compare we're Europe build and us in we Like into

you're versus a the about the market. variance. When be talks in market, it's to we conversion x the of talk XX% know no is that -- in about it awareness is know percent open We there's happen in new going when going if your point that the exponentially Once [indiscernible] exponential customers exactly market and one builds you be kind where it, like, to opening it starts tips get so in brand starts going going, and build every new you're to the but and a going don't point, people do, tipping we have what's it knows like grow. country awareness to you, exactly is what gets to of U.S. to within

late and more 'XX, telling what is see you more, today, see but we're more. So 'XX, I and optimizing that yes, and 'XX, worth 'XX we things, dimensionalizing because early might the it's of more directionally, opportunities be we

So...

sense. And for one last Makes if Jack. Helpful. may, I quick one

With the second And the any first delay the be Sourcebook margin to quarter relative mailing impact was in impact prior what the lower negative delay in from your in the from Modern the will quarter costs? there on expectations? Sourcebook,

minimal we a had Yes, impact.

almost start because were get to it going -- think. last going Yes, in, week, to I to was in we the nothing

minimal the expense -- in part been [indiscernible] We've the of with... quarter minimal

Minimal was Yes. the other It all questions? QX. it in cost, Any was most ad of of almost

question Brian Oppenheimer. come with final Nagel will from our And

of So It couple a I should quick quick. really have questions. be

this the and just you too. But of -- talked a a tonne is your follow-up, and Gary, one, lot about So again, leverage. business the

reflection -- that I in lately second gap products happening. the what's and guess, the the, growth. is strength new the of explains Should just better question have the we have, mentioned Is in between that's demand a interpret trends stores? you And the growth direct then sales Europe. what You I widening

-- in think is new new point, -- new also product, And that all not lift. it's right. to you're just creating to buy stores It's I just it that's or not the Yes. the the online that's say, And right? a stock products -- new it's a and the that minimize the I it whether going right, is you're and in the now right? for books piece not then upfront. we've really No, to bigger It's mean, product in just creating other stores put in right inflection product I'd going is buy you're getting

if of all galleries months decided lift doesn't for say, it that. than demand might take to more even X and those then to into until you And gets X once and an and the months again. after get half one you this get get galleries, I'm galleries you those galleries later. it out the it your to bigger And even way be to if you're -- thought, bet buy your upfront." But so doesn't galleries. then stock early hits to selling you're going even And "Hey, It

business to because the ramped it get So of move in I kind up we're we're a takes high while at big the factories against end. -- business biggest like mean, the a that big fast a this can't numbers.

to they So forecast the start that, our had collection it. scale I'd out the just that of like move have early to trends Like of is two based going said were opened they got to you manufacturing manufacturer could when it, that of more demand no quickly, triple the had it best makes They became kind the be scale. quickly same factories. dimensionalize one I on was more wow, size three mean more move building, did one it, this a to buildings harder say. It's you the that one from as smaller our to easier collections gate, I we're of when we

So that while. a just takes

got So about really in-stocks. think you to

of now. of come in factors, our stock we down, when highs backorders is, some at right look lift record get we are when when in one God, backorders our Like biggest the that,

X and special order between times but that issues is like and that's got in demand the really lead gap permanent, wait so the to and and tip of And backorders then to the permanent, some you us sales times that backlog just weeks. go X on XX around almost put itself. Red basically weeks the product, Africa That days a and Sea caused the creates

lot of a going are way. that goods So our

into you so doesn't that demand revenue turn it into that And weeks X and take turn doesn't and revenue.

fast we that order You the really got we kind lot here and it's happened right? noise kind going then newness. We're access lead COVID, some shortening in of to cadence of special manufacturers don't a Red times had catching a a right? a just XX% Sea have to delta. and enough, can kind that product, of and until for hangover the on stock a no you're you of going ever catch it's up people on new of big kind of you've catch And up then Like ramp can't and then turnaround up demand getting so go and different times of It's again, regular while. create it's until on shortening of kind to and XX%

Thank you. it. helpful. I appreciate That's very

about We best Thanks, you, of doing think and your question, the thank business attention and evolution time right? Brian. our really excited last And and this rewarded the in our platform. the today. transformation That brand Well, doing, done we that Okay. just and was work soon, the everyone, this new of We're doing for we're bringing people and support. of think appreciate work your really job we doing are ever we've just feel shareholders to our will the all we're to are vision this life. very an incredible some

we you and you, next So talk thank will to quarter...

for and now disconnect. Thank participation, you may you your