RH (RH) 2023 Q1 法說會逐字稿

Thank you for standing by. My name is Briana, and I will be your conference operator today. At this time, I would like to welcome everyone to the RH First Quarter 2023 Q&A Conference Call. (Operator Instructions) I will now turn the call over to Allison Malkin of ICR. You may begin your conference.

謝謝你的支持。我叫 Briana，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 RH 2023 年第一季度問答電話會議。 （操作員說明）我現在將把電話轉給 ICR 的 Allison Malkin。你可以開始你的會議。

Thank you, Briana. Good afternoon, everyone. Thank you for joining us for our First Quarter Fiscal 2023 Earnings Conference Call. Joining me today are Gary Friedman, Chairman and Chief Executive Officer; and Jack Preston, Chief Financial Officer. Before we start, I would like to remind you of our legal disclaimer that we will make certain statements today that are forward-looking within the meaning of the federal securities laws, including statements about the outlook of our business and other matters referenced in our press release issued today.

謝謝你，布里安娜。大家下午好。感謝您加入我們的 2023 財年第一季度收益電話會議。今天加入我的是董事長兼首席執行官加里·弗里德曼 (Gary Friedman)；和傑克普雷斯頓，首席財務官。在我們開始之前，我想提醒您注意我們的法律免責聲明，即我們今天將發表某些符合聯邦證券法含義的前瞻性聲明，包括關於我們業務前景的聲明以及我們媒體引用的其他事項今天發布。

These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings as well as our press release issued today for a more detailed description of the risk factors that may affect our results. Please also note that these forward-looking statements reflect our opinion only as of the date of this call. And we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

這些前瞻性陳述涉及許多可能導致實際結果大不相同的風險和不確定性。請參閱我們向美國證券交易委員會提交的文件以及我們今天發布的新聞稿，以更詳細地描述可能影響我們業績的風險因素。另請注意，這些前瞻性陳述僅反映我們截至本次電話會議之日的觀點。我們沒有義務根據新信息或未來事件修改或公開發布對這些前瞻性陳述的任何修改結果。

Also, during this call, we may discuss non-GAAP financial measures, which adjust our GAAP results to eliminate the impact of certain items. You will find additional information regarding these non-GAAP financial measures and a reconciliation of these non-GAAP to GAAP measures in today's financial results press release. A live broadcast of this call is also available on the Investor Relations section of our website at ir.rh.com.

此外，在這次電話會議中，我們可能會討論非 GAAP 財務措施，這些措施會調整我們的 GAAP 結果以消除某些項目的影響。您將在今天的財務業績新聞稿中找到有關這些非 GAAP 財務措施的更多信息以及這些非 GAAP 與 GAAP 措施的調節。我們網站 ir.rh.com 的投資者關係部分也提供此次電話會議的現場直播。

With that, I'll turn the call over to Gary.

有了這個，我會把電話轉給加里。

Great. Thank you for joining, everyone. I'm going to begin with our prepared comments on our shareholder letter and then open the call to questions. To our people, partners and shareholders, revenues of $739 million and adjusted operating margin of 14.9% exceeded our financial outlook in the first quarter despite continued decline of the overall macro environment, especially for home-related businesses.

偉大的。謝謝大家的加入。我將從我們準備好的對股東信函的評論開始，然後開始提問。對於我們的員工、合作夥伴和股東來說，儘管整體宏觀環境持續下滑，尤其是家居相關業務，但 7.39 億美元的收入和 14.9% 的調整後營業利潤率超出了我們第一季度的財務預期。

With 30-year mortgage rates trending at 20-year highs, the possibility of continued economic tightening required to tame inflation and uncertainty regarding the recent regional banking crisis, we expect luxury housing market and broader economy to remain challenging throughout fiscal '23 and into next year.

由於 30 年期抵押貸款利率趨於 20 年高位，需要持續經濟緊縮以抑制通貨膨脹的可能性以及最近區域銀行業危機的不確定性，我們預計豪宅市場和更廣泛的經濟在整個 23 財年和下一財年仍將充滿挑戰年。

Based on the above and current demand trends, we are now forecasting increased markdowns to clear discontinued inventory required to support our product transformation over the next several quarters. We are raising our revenue outlook for fiscal 2023 to a range of $3 billion to $3.1 billion and lowering our outlook for adjusted operating margin to a range of 14.5% to 15.5%, which includes an approximately 150 basis point drag due to the ramp-up of our global expansion.

基於上述和當前的需求趨勢，我們現在預測降價幅度會增加，以清除支持我們在未來幾個季度進行產品轉型所需的停產庫存。我們將 2023 財年的收入前景上調至 30 億美元至 31 億美元，並將調整後的營業利潤率前景下調至 14.5% 至 15.5%，其中包括因產能增加而拖累的約 150 個基點我們的全球擴張。

As previously mentioned, it's times like these that businesses tend to move in herds, pursuing broadly adopted short-term strategies that lead to mostly similar outcomes. It's also times like these that present opportunities to pursue long-term strategies that can create strategic separation and significant value creation for those teams willing to take the road less traveled and pursue their own unique path. That path for RH is our climb up the luxury mountain and our long-term strategies of product elevation, platform expansion and cash generation.

如前所述，正是在這樣的時代，企業往往會成群結隊，追求廣泛採用的短期戰略，這些戰略會導致大部分相似的結果。也正是在這樣的時候，提供了追求長期戰略的機會，這些戰略可以為那些願意走少有人走的路並追求自己獨特道路的團隊創造戰略分離和重大價值創造。 RH 的這條道路是我們攀登奢侈品山峰以及我們產品提升、平台擴張和現金產生的長期戰略。

Product elevation. Our efforts to elevate the design and quality of our products are central to our strategy of positioning RH as the first fully integrated luxury home brand in the world. It is also the most difficult part of our climb as it requires attracting higher value, more discerning customers by offering higher quality, more desirable designs. While it's the climb that becomes more difficult as we reach new heights, it's also one we've been navigating successfully over the past 22 years. This year, we'll be unveiling the most prolific collection of new products in our history, with over 70 new furniture and upholstery collections across RH Interiors, Contemporary, Modern, Outdoor, Baby & Child and Teen.

產品提升。我們提升產品設計和質量的努力是我們將 RH 定位為世界上第一個完全集成的豪華家居品牌的戰略的核心。這也是我們攀登過程中最困難的部分，因為它需要通過提供更高質量、更理想的設計來吸引更高價值、更挑剔的客戶。雖然隨著我們達到新的高度，攀登變得更加困難，但這也是我們在過去 22 年中一直成功航行的攀登。今年，我們將推出我們歷史上最多產的新產品系列，包括 RH Interiors、現代、現代、戶外、嬰兒和兒童以及青少年的 70 多個新家具和室內裝潢系列。

These new collections reflect a new level of design and quality and accessible in our current markets and a value proposition that will be disruptive across multiple markets. We also believe the new collections will generate a level of excitement and serve as an inflection point for our business in the second half of the year. The new collections will be gracing the pages of a new Source Book design with the objective of creating a cohesive collection of titles, reinforcing our design and quality leadership with our trademark belief inscribed across the cover, "There are pieces that furnish a home and those that define it."

這些新系列反映了新的設計和質量水平，並且在我們當前的市場中易於獲得，並且價值主張將在多個市場中產生顛覆性影響。我們還相信，新系列將帶來一定程度的興奮，並成為我們下半年業務的轉折點。新系列將裝點新資料冊設計的頁面，目的是創建一個有凝聚力的系列，通過我們在封面上刻有的商標信念，加強我們在設計和質量方面的領導地位，“有些東西可以裝飾一個家，而那些定義它。”

Platform expansion. Our plan to expand the RH brand globally, addressing new markets locally and transform our North American galleries represents a multibillion-dollar opportunity. This summer, we'll be introducing RH to the U.K. in a dramatic and unforgettable fashion with the opening of RH England, The Gallery at the historic Aynhoe Park, a 17th century, 73-acre estate that will be a celebration of history, design, food and wine. RH England includes 3 full service restaurants, The Orangery, The Conservatory and The Loggia, plus 3 secondary hospitality experience, The Wine Lounge, The Tea Salon and The Juicery.

平台擴展。我們計劃在全球範圍內擴展 RH 品牌、在本地開拓新市場並改造我們的北美畫廊，這是一個價值數十億美元的機會。今年夏天，我們將以戲劇性和令人難忘的方式將 RH 引入英國，在歷史悠久的 Aynhoe 公園開設畫廊 RH England，這座 17 世紀佔地 73 英畝的莊園將慶祝歷史、設計, 食物和酒。 RH England 包括 3 家提供全方位服務的餐廳，即 The Orangery、The Conservatory 和 The Loggia，外加 3 家次要酒店體驗，即 The Wine Lounge、The Tea Salon 和 The Juicery。

Guests will appreciate views of Europe's largest herd of white deer grazing on the vast and scenic property from the 46 windows adjourning the south-facing main building and can enjoy a glass of wine or afternoon tea service while sitting around monolithic stone fire pits on the Grand Viewing Terrace.

客人可以從朝南的主樓旁邊的 46 個窗戶欣賞歐洲最大的白鹿群在廣闊而風景優美的莊園上吃草的景色，還可以坐在 Grand 的巨石火坑周圍享用一杯葡萄酒或下午茶服務查看露台。

One of the most unique attractions at RH England is the Aynhoe Architecture and Design Library, featuring rare books from the foundational Masters of Architecture, Palladio, Scamozzi and Alberti. The centerpiece of the collection is one of the first printings of De Architectura, The Ten Books on Architecture by Vitruvius, who's worked from the First Century BC inspired Leonardo da Vinci's drawing of the Vitruvian Man 15 years after Vitruvius sketched the original. The principles at the core of Vitruvius' philosophy have also inspired the RH design ethos, which is reflected in our galleries, interiors and gardens.

RH England 最獨特的景點之一是 Aynhoe Architecture and Design Library，收藏了來自基礎建築大師 Palladio、Scamozzi 和 Alberti 的珍本書籍。該系列的核心是 De Architectura 的首批印刷品之一，維特魯威 (Vitruvius) 的《十本建築書籍》(De Architectura) 在維特魯威 (Vitruvius) 繪製原作 15 年後的 15 年啟發了列奧納多·達·芬奇 (Leonardo da Vinci) 的維特魯威人圖畫。維特魯威哲學的核心原則也啟發了 RH 設計精神，這反映在我們的畫廊、室內設計和花園中。

The Gallery will also include the Sir John Soane Exhibition, honoring one of England's greatest architects, in partnership with Sir Johns Soane's Museum in London. The exhibit will touch on his life story and detail some of his most famous works, including Aynhoe Park. We believe RH England, The Gallery at historic Aynhoe Park also represents RH's greatest work and will act as a symbol of our values and beliefs as we embark on our expansion across Europe. We'll be unveiling RH England at an exclusive private event Saturday, June 3, and will be open to the public on Friday, June 9.

畫廊還將與倫敦的約翰·索恩爵士博物館合作舉辦約翰·索恩爵士展覽，以紀念英格蘭最偉大的建築師之一。該展覽將講述他的人生故事，並詳細介紹他最著名的一些作品，包括 Aynhoe Park。我們相信 RH England，位於歷史悠久的 Aynhoe Park 的畫廊也代表了 RH 最偉大的作品，並且在我們開始在歐洲擴張時將成為我們價值觀和信念的象徵。我們將在 6 月 3 日星期六的獨家私人活動中揭開 RH England 的面紗，並將於 6 月 9 日星期五向公眾開放。

Our global expansion also includes opening in Brussels, Dusseldorf, Munich and Madrid as well as an interior design studio in London over the next 18 months, followed by Paris, London, Milan and Sydney in 2024 and 2025. Regarding our North American transformation, we will be introducing a new gallery design in Palo Alto in Cleveland as well as opening RH Indianapolis, 178-acre estate on a private lake this year. RH Montecito, The Gallery at the historic Firehouse will now open in 2024. Additionally, we have 12 North American galleries in development pipeline scheduled to open over the next several years.

我們的全球擴張還包括在未來 18 個月內在布魯塞爾、杜塞爾多夫、慕尼黑和馬德里開設室內設計工作室，隨後在 2024 年和 2025 年在巴黎、倫敦、米蘭和悉尼開設室內設計工作室。關於我們的北美轉型，我們將在克利夫蘭的帕洛阿爾托推出新的畫廊設計，並於今年在私人湖泊上開設佔地 178 英畝的 RH Indianapolis 莊園。 RH Montecito，位於歷史悠久的 Firehouse 的畫廊將於 2024 年開放。此外，我們還有 12 家北美畫廊正在開發中，計劃在未來幾年內開放。

We also believe there is an opportunity to address new markets locally by opening design studios in neighborhoods, towns and small cities where the wealthy and affluent live, visit and vacation. We have several existing locations to validate this strategy in East Hampton, Yountville, Los Gatos, Pasadena and our former San Francisco gallery in the Design District, where we have generated annual revenues in the range of $5 million to $20 million in 2,000 to 5,000 square feet. We have identified over 40 locations that are incremental to our previous plan in North America and believe the results of these design studios will provide data that could lead to opening larger galleries in those markets.

我們還相信，通過在富人居住、遊覽和度假的社區、城鎮和小城市開設設計工作室，我們有機會開拓當地的新市場。我們在東漢普頓、揚特維爾、洛斯加托斯、帕薩迪納和我們在設計區的前舊金山畫廊有幾個現有的地點來驗證這一戰略，我們在這些地方的 2,000 至 5,000 平方米的空間內創造了 500 萬至 2000 萬美元的年收入腳。我們已經確定了 40 多個位置，這些位置是我們之前在北美的計劃的增量，並且相信這些設計工作室的結果將提供可能導致在這些市場開設更大畫廊的數據。

Cash generation. We have demonstrated that those with capital in difficult markets are the ones who capitalize. That's why we raised $2.5 billion of long-term debt before the markets tightened and are now in a position to take advantage of the opportunities that may present themselves in times of uncertainty and dislocation. As mentioned, we'll be focused on turning inventory into cash and continuing to optimize costs throughout the organization, further strengthening our balance sheet to maximize optionality.

現金產生。我們已經證明，那些在困難市場中擁有資本的人才是資本化者。這就是為什麼我們在市場收緊之前籌集了 25 億美元的長期債務，並且現在能夠利用在不確定性和混亂時期可能出現的機會。如前所述，我們將專注於將庫存轉化為現金並繼續優化整個組織的成本，進一步加強我們的資產負債表以最大限度地提高可選性。

Outlook. We are raising our revenue outlook for fiscal 2023 to a range of $3.0 billion to $3.1 billion and lowering our outlook for adjusted operating margin to a range of 14.5% to 15.5%, which includes an approximately 150 basis point drag due to the ramp-up of our global expansion. We estimate the 53rd week will result in revenues of approximately $60 million.

外表。我們將 2023 財年的收入前景上調至 30 億美元至 31 億美元，並將調整後的營業利潤率前景下調至 14.5% 至 15.5%，其中包括因產能增加而拖累的約 150 個基點我們的全球擴張。我們估計第 53 週將帶來大約 6000 萬美元的收入。

For the second quarter of 2023, we are forecasting revenues of $765 million to $775 million and adjusted operating margin in the range of 14% to 14.5%. The second quarter of fiscal 2023 includes incremental advertising expense of approximately $18 million versus last year for the new RH Interiors and RH Contemporary Source Books, plus the opening of RH England, representing approximately 230 basis points of operating margin deleverage in the quarter.

對於 2023 年第二季度，我們預計收入為 7.65 億美元至 7.75 億美元，調整後的營業利潤率在 14% 至 14.5% 之間。 2023 財年第二季度，新的 RH Interiors 和 RH Contemporary Source Books 的廣告費用比去年增加了約 1800 萬美元，加上 RH England 的開業，代表本季度營業利潤率下降了約 230 個基點。

RH business vision and ecosystem, the long view. We believe there are those with taste and no scale and those with scale and no taste. And the idea of scaling taste is large and far-reaching. Our goal to position RH as the arbiter of taste for the homes has proven to be both disruptive and lucrative as we continue our quest to build the most admired brand in the world. Our brand attracts the leading designers, artisans and manufacturers, scaling and rendering their work more valuable across our integrated platform, enabling RH to curate the most compelling collection of luxury home products on the planet.

RH 業務願景和生態系統，長遠的眼光。我們相信有些人有品味但沒有規模，有些人有規模但沒有品味。縮放口味的想法是宏大而深遠的。隨著我們繼續努力打造世界上最受推崇的品牌，我們將 RH 定位為家居品味仲裁者的目標已被證明既具有顛覆性又有利可圖。我們的品牌吸引了領先的設計師、工匠和製造商，在我們的集成平台上擴展並使他們的工作更有價值，使 RH 能夠策劃全球最引人注目的豪華家居產品系列。

Our efforts to elevate and expand our collection will continue with the introduction of RH Couture, RH Bespoke, RH Color, RH Antiques & Artifacts, RH Atelier and other new collections scheduled to launch over the next decade. Our plan to open immersive design galleries in every major market will unlock the value of our vast assortment, generating revenues of $5 billion to $6 billion in North America and $20 billion to $25 billion globally. Our strategy is to move the brand beyond curating and selling products to conceptualizing and selling spaces by building an ecosystem of products, places, services and spaces that establishes RH brand as a global thought leader, taste and place maker.

我們將繼續努力提升和擴大我們的系列，推出 RH Couture、RH Bespoke、RH Color、RH Antiques & Artifacts、RH Atelier 和計劃在未來十年推出的其他新系列。我們計劃在每個主要市場開設沉浸式設計畫廊，這將釋放我們龐大產品組合的價值，在北美創造 50 億至 60 億美元的收入，在全球創造 200 億至 250 億美元的收入。我們的戰略是通過構建產品、場所、服務和空間的生態系統，將品牌從策劃和銷售產品轉移到概念化和銷售空間，將 RH 品牌確立為全球思想領袖、品味和場所製造者。

Our products are elevated and rendered more valuable by architecturally inspiring galleries, which are further elevated and rendered more valuable by our interior design services and seamlessly integrated hospitality experience. Our hospitality efforts will continue to elevate the RH brand as we extend beyond the 4 walls of our galleries into RH Guesthouses. Our goal is to create a new market for travelers seeking privacy and luxury in the $200 billion North American hotel industry. Additionally, we are creating bespoke experiences like RH Yountville, an integration of food, wine, art and design in the Napa Valley, RH1 and RH2, our private jets and RH3, our luxury yacht that is available for charter in the Caribbean and Mediterranean, where the wealthy and affluent visit and vacation.

我們的產品通過具有建築靈感的畫廊提升並變得更有價值，這些畫廊通過我們的室內設計服務和無縫集成的酒店體驗進一步提升並變得更有價值。隨著我們從畫廊的 4 堵牆延伸到 RH Guesthouses，我們的熱情好客將繼續提升 RH 品牌。我們的目標是在價值 2000 億美元的北美酒店業中為尋求隱私和奢華的旅行者創造一個新市場。此外，我們正在創造定制體驗，如 RH Yountville，納帕谷的美食、美酒、藝術和設計的結合，RH1 和 RH2，我們的私人飛機和 RH3，我們的豪華遊艇可在加勒比海和地中海租用，有錢有勢的人到訪和度假的地方。

These immersive experiences expose new and existing customers to our evolving authority and architecture, interior design and landscape architecture. This leads to our long-term strategy of building the world's first consumer-facing architecture, interior design and landscape architecture services platform inside our galleries, elevating the RH brand and amplifying our core business by adding new revenue streams while disrupting and redefining multiple industries. Our strategy comes full circle as we begin to conceptualize and sell spaces, moving beyond the $170 billion home furnishings market into the $1.7 trillion North American housing market with the launch of RH Residences. Fully furnished luxury homes, condominiums and apartments with integrated services that deliver taste and time value to discerning time-starved consumers.

這些身臨其境的體驗讓新客戶和現有客戶了解我們不斷發展的權威和建築、室內設計和景觀建築。這導致了我們的長期戰略，即在我們的畫廊內建立世界上第一個面向消費者的建築、室內設計和景觀建築服務平台，提升 RH 品牌並通過增加新的收入來源擴大我們的核心業務，同時顛覆和重新定義多個行業。隨著我們開始概念化和銷售空間，我們的戰略圓滿結束，隨著 RH Residences 的推出，從價值 1700 億美元的家居裝飾市場進入價值 1.7 萬億美元的北美住房市場。家具齊全的豪華住宅、公寓和公寓提供綜合服務，為挑剔的時間緊迫的消費者提供品味和時間價值。

The entirety of our strategy comes to life digitally with The World of RH, an online portal where customers can explore and be inspired by the depth and dimension of our brand. Our authority as an arbiter of taste will be further amplified when we introduce RH Media, a content platform that will celebrate the most innovative and influential leaders, who are shaping the world of architecture and design. Our plan to expand the RH ecosystem globally, multiplies the market opportunity to $7 trillion to $10 trillion, one of the largest and most valuable addressed by any brand in the world today. A 1% share of the global market represents a $70 billion to $100 billion opportunity.

我們的整個戰略通過 The World of RH 以數字方式實現，這是一個在線門戶網站，客戶可以在其中探索我們品牌的深度和維度並從中獲得靈感。當我們推出 RH Media 時，我們作為品味仲裁者的權威將得到進一步放大，RH Media 是一個內容平台，將慶祝塑造建築和設計世界的最具創新性和影響力的領導者。我們計劃在全球範圍內擴展 RH 生態系統，將市場機會增加到 7 萬億至 10 萬億美元，這是當今世界上任何品牌所面臨的最大和最有價值的市場之一。全球市場 1% 的份額代表著 700 億至 1000 億美元的機會。

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

我們的產品場所、服務和空間生態系統激發客戶在 RH 精心策劃的世界中夢想、設計、用餐、旅行和生活，創造一種不同於世界上任何其他品牌的情感聯繫。品味是難以捉摸的，我們相信沒有人比 RH 更能創造一個生態系統，讓品味具有包容性，並通過這樣做來提升我們的生活方式，使我們的生活方式更有價值。攀登奢侈品之山，打造無可匹敵的品牌。從 Chanel 到 Cartier，從 Louis Vuitton 到 Loro Piana，從 Harry Winston 到 Hermes，每一個奢侈品牌都誕生於奢侈品山頂。從來沒有一個品牌試圖攀登到頂峰，其他品牌也不希望您這樣做。

We have a deep understanding that our work has to be so extraordinary that it creates a forced reconsideration of who we are and what we are capable of, requiring those at the top of the mountain to tip their hat in respect. We also appreciate that this climb is not for the faint of heart. And as we continue our ascent, the air gets thin and the odds become slim. We believe the level of work we plan to introduce this year, inclusive of our new collections, new Source Book design, new gallery design and the introduction of RH to the U.K. in an immersive and unforgettable fashion will continue to demonstrate the imagination, determination, creativity and courage of this team and the relentless pursuit of our dream.

我們深刻理解，我們的工作必須如此非凡，以至於它會強制重新考慮我們是誰以及我們的能力，要求那些處於山頂的人向他們致敬。我們也很感激這次攀登不適合膽小的人。隨著我們繼續上升，空氣變得稀薄，成功的可能性也越來越小。我們相信，我們計劃在今年推出的工作水平，包括我們的新系列、新資料冊設計、新畫廊設計以及以身臨其境和令人難忘的方式將 RH 引入英國，將繼續展示想像力、決心、這個團隊的創造力和勇氣以及我們對夢想的不懈追求。

Over 20 years ago, we began the journey with the vision of transforming a nearly bankrupt business with a $20 million market cap and a box of Oxydol laundry detergent on the cover of the catalog into the leading luxury home brand in the world. The lessons and learnings, the passion and persistence, the courage required and the scar tissue developed by getting knocked down 10 times and getting up 11, leads to the development of the mental and moral strength that builds character in individuals and form cultures in organization, lessons that can't be learned in a classroom or by managing a business, lessons that must be earned by building one or by reaching the top of the mountain.

20 多年前，我們的願景是將一家市值 2000 萬美元、目錄封面上有一盒 Oxydol 洗衣粉的幾乎破產的企業轉變為全球領先的豪華家居品牌。教訓和學習、激情和堅持、所需的勇氣和因被擊倒 10 次和爬起來 11 次而形成的疤痕組織，導致精神和道德力量的發展，從而在個人中建立性格並在組織中形成文化，無法在課堂上或通過管理企業學到的課程，必須通過建立一個或到達山頂來獲得的課程。

Onward team RH, Carpe diem. Gary. At this point, operator, we'll open the call to questions.

前進隊 RH，及時行樂。加里。在這一點上，接線員，我們將打開問題電話。

(Operator Instructions) Your first question comes from Steven Zaccone with Citi.

（操作員說明）你的第一個問題來自花旗銀行的 Steven Zaccone。

I wanted to start on the need to take the increased markdowns. So Gary, I was just curious if you could comment what you saw in the business over the past couple of months that this was updated in guidance now versus factoring into your original outlook when you spoke to us at the end of March.

我想從需要增加降價開始。所以加里，我只是想知道你是否可以評論一下你在過去幾個月的業務中看到的情況，即現在在指導中進行了更新，而不是在 3 月底與我們交談時考慮到你最初的展望。

Sure. Well, I think what we've seen is in an increasing headwind from a demand point of view. And a slowing of our cycling through our discontinued inventory. As we've increased our markdowns to begin to cycle through this product to be prepared to move the old product out and bring the new product in. And then just projecting what it may cost us to cycle through transforming all of our galleries. Remember, we've got product in all of our galleries that we have to kind of do sell floor model sell-off and transition through our outlet business. We now believe it's going to cost us more from a markdown perspective to move through that inventory in this environment.

當然。好吧，我認為我們所看到的是從需求的角度來看，逆風越來越大。並通過我們停產的庫存減緩我們的循環。隨著我們增加降價以開始循環使用該產品，以準備將舊產品移出並引入新產品。然後只是預測我們通過改造所有畫廊循環可能花費的成本。請記住，我們所有的畫廊都有產品，我們必須通過我們的直銷業務進行銷售模型銷售和過渡。我們現在認為，從降價的角度來看，在這種環境下處理該庫存將使我們付出更多代價。

Okay. Fair enough. Then the follow-up question I had was on the U.K. market opportunity. I think it was a couple of calls ago, you talked about the potential size of the U.K. market being as large as California. I guess on the cusp of opening England now, how do you think about the opportunity now? Maybe how do you think about the competitive environment, how you plan to merchandise this first gallery? Anything you could say would be helpful.

好的。很公平。然後我的後續問題是關於英國市場機會。我想是在幾個電話之前，你談到了英國市場的潛在規模與加利福尼亞一樣大。我想現在正處於開放英格蘭的風口浪尖，你現在如何看待這個機會？也許您如何看待競爭環境，您打算如何銷售這家第一家畫廊？你能說的任何話都會有所幫助。

Sure. I don't think we see anything that's different from how we've always viewed the opportunity. I think the timing is from a -- if the macro environment is somewhat different, so our initial expectations are more muted as you would expect. And from a competitive environment, I don't think anything has changed. Just as we become more connected to the market, as our people have been there longer, working, training, et cetera, developing early connections and relationships with interior designers, the trade industry and so on and so forth, we believe it's going to be a huge opportunity for us. But there's also a lot of unknowns in a new country.

當然。我認為我們看到的與我們一直以來對機會的看法沒有任何不同。我認為時機來自 - 如果宏觀環境有所不同，那麼我們最初的預期會像你預期的那樣更加低調。從競爭環境來看，我認為沒有任何改變。正如我們與市場的聯繫越來越緊密，隨著我們的員工在那里工作、接受培訓等的時間越來越長，與室內設計師、貿易行業等等建立起早期的聯繫和關係，我們相信它將成為對我們來說是一個巨大的機會。但在一個新的國家也有很多未知數。

So we believe we're being cautiously optimistic as we dip our toe in the water and begin. And I'd just remind everyone that RH England, it's really -- it's a unique kind of move in the market, a unique play in the market where our goal is to create the right conversation. And not -- I wouldn't say RH England is our play to maximize commerce originally. That will happen as we continue to open RH London and in other parts of the U.K.

因此，我們相信，當我們將腳趾浸入水中並開始時，我們會持謹慎樂觀的態度。我只想提醒大家，RH England，這真的是——這是市場上一種獨特的舉動，是市場上獨一無二的遊戲，我們的目標是創造正確的對話。而不是 - 我不會說 RH England 是我們最初最大化商業的遊戲。隨著我們繼續在倫敦和英國其他地區開設 RH，這種情況將會發生。

But how do you think a brand and introduce a brand to the United Kingdom and broader Europe in a way that positions the brand correctly for the long term? And if you stand back and think about the world and think about the world of luxury brands, I mean, basically, all the luxury brands in the world are from Europe and the U.K., mostly France and Italy.

但是，您如何看待品牌並以長期正確定位品牌的方式將品牌引入英國和更廣泛的歐洲？如果你退一步想想這個世界，想想奢侈品牌的世界，我的意思是，基本上，世界上所有的奢侈品牌都來自歐洲和英國，主要是法國和意大利。

And if you look at what are the true luxury brands in the U.S., you can argue who really makes that cut. I would argue that the brand that's most clearly identified as a luxury brand from the United States is Tiffany, right, because they haven't pushed their brand down or -- to broader markets as others may have and the French just bought Tiffany a few years ago, right? So I wouldn't say we're particularly seen as -- the U.S. is seen as the tastemakers of the world. And because we've usually looked to Europe for inspiration. And the U.S. brands, I'd characterize, are more followers than leaders. To build a true luxury brand I think you have to be seen in respected as a leader, a thought leader, a place maker, taste maker, however you want to characterize it.

如果你看看美國真正的奢侈品牌是什麼，你就會爭論誰真正做到了這一點。我會爭辯說，最明確地被認為是來自美國的奢侈品牌的品牌是蒂芙尼，對吧，因為他們沒有像其他人那樣將自己的品牌推向更廣闊的市場，而法國人只是買了一些蒂芙尼幾年前，對吧？所以我不會說我們特別被視為——美國被視為世界的風尚製造者。而且因為我們通常向歐洲尋求靈感。而美國品牌，我認為，更多的是追隨者而不是領導者。要打造一個真正的奢侈品牌，我認為你必須被視為領導者、思想領袖、場所創造者、品味創造者，無論你想如何描述它。

So we're approaching our introduction in an entirely unique and one-of-a-kind way, by opening store somewhere no one has ever opened a store, introducing a brand in a manner that no one has introduced the brand. And there's a level of risk to redefine a brand. There's a level of courage that's required to kind of go from where you are to where you want to be. And in our case, as we characterize it, climbing the luxury mountain. And so what the world will see in a few weeks here is, I think, the most unique and inspiring retail experience anywhere in the world, bar none.

因此，我們正在以一種完全獨特且獨一無二的方式進行介紹，通過在沒有人開過商店的地方開設商店，以沒有人介紹品牌的方式介紹品牌。重新定義品牌存在一定程度的風險。從你所在的地方到你想去的地方需要一定的勇氣。在我們的例子中，正如我們描述的那樣，攀登豪華的山峰。因此，我認為，幾週後世界將在這裡看到的是世界上任何地方最獨特、最鼓舞人心的零售體驗，沒有之一。

And I think it has a chance to be the most talked about retail store and the most admired retail experience of anything anybody has ever seen. And prioritizing, creating the right conversation versus maximizing the commercial activity in the market initially, we believe is the right sequencing to build the brand. So it's very unique. It does open the entire market from an online point of view. But we're 1 hour and 45 minutes outside of London, right? On many levels, people would say this makes no sense.

而且我認為它有機會成為人們所見過的最受關注的零售店和最受推崇的零售體驗。我們認為，優先考慮、創造正確的對話與最大化市場的商業活動最初是建立品牌的正確順序。所以它非常獨特。它確實從在線的角度打開了整個市場。但是我們距倫敦 1 小時 45 分鐘車程，對吧？在許多層面上，人們會說這毫無意義。

But that would only be looking backwards and saying, well, no one's ever done anything like that before, why would it work? Why would -- everyone has had different goals than we've had. Again, we're in a one-of-a-kind journey here. We're on a climb that no one's ever attempted to make. And we're coming from a place that has only had -- the biggest economy in the world will argue we only have one real luxury brand and now the French own it. So it's a different path. And I don't expect it to be understood initially. I do believe it will be respected and it will inspire people eventually.

但這只會向後看並說，好吧，以前沒有人做過這樣的事情，為什麼它會奏效？為什麼會——每個人的目標都與我們不同。再一次，我們在這裡進行了一次獨一無二的旅程。我們正在攀登從未有人嘗試過的攀登。我們來自一個曾經擁有過的地方——世界上最大的經濟體會爭辯說我們只有一個真正的奢侈品牌，而現在法國人擁有了它。所以這是一條不同的道路。我不希望它一開始就被理解。我相信它會受到尊重，最終會激勵人們。

Your next question comes from Simeon Gutman with Morgan Stanley.

你的下一個問題來自摩根士丹利的 Simeon Gutman。

So I have -- maybe I'll make a 2-part question, one question. Just to confirm, it looks like the domestic business seems to be hitting your forecast or bottoming outside of a potential, let's say, consumer recession. So that the change to the guidance other than the markdowns is mostly the Europe inclusion. And then my second question, this is more theoretical. Thinking about the EBIT margin of the business with the mix of Europe, U.S. reaccelerating and then hospitality and luxury coming into the next getting back to, let's say, 20 plus, is that going to be a much longer time frame? Or how should we think about that?

所以我-- 也許我會提出一個由兩部分組成的問題，一個問題。只是確認一下，國內業務似乎正在達到您的預測或觸底反彈，比方說，消費者衰退。因此，除了降價之外，對指導的更改主要是歐洲的納入。然後我的第二個問題，這是更理論化的。考慮業務的息稅前利潤率，歐洲、美國重新加速，然後酒店和奢侈品進入下一個回到，比方說，20+，這會是一個更長的時間框架嗎？或者我們應該如何考慮？

I think it depends on the macro. If we get stability and there's any kind of the headwind stop and subside, you're going to have a new baseline. And I think it depends on how well we've executed this next major product transformation. I mean we went through a transformation like this. We generally do in every 7 or 8 years as we've continued to elevate the brand and expand and just move the assortment upwards.

我認為這取決於宏觀。如果我們獲得穩定並且有任何逆風停止和消退，你將有一個新的基線。我認為這取決於我們在下一次重大產品轉型中的執行情況。我的意思是我們經歷了這樣的轉變。我們通常每 7 或 8 年進行一次，因為我們一直在不斷提升品牌並擴大產品種類，並不斷提升品類。

So today, I'd say this is the best work we've ever done. We're launching it into maybe the worst home environment at the high end that I've ever seen in my career. I've never seen luxury housing down at the levels we've seen from recent reports and we're at 20-year high interest rates. So there's some level of caution. I can't -- we can't control the macro, but I'd say I'm more optimistic and less optimistic about our model long term. I don't see any reason that we can't return to 20% plus mid-20s operating margins long term. We have to prove out the European strategy and expansion. I think we have to be smart how we allocate capital and how we build that infrastructure and how we keep things simple.

所以今天，我要說這是我們做過的最好的工作。我們將它推出可能是我職業生涯中見過的最糟糕的高端家庭環境。我從未見過豪宅降到我們從最近的報告中看到的水平，而且我們處於 20 年的高利率水平。所以有一定程度的謹慎。我不能——我們無法控制宏觀，但我想說我對我們的模型的長期樂觀和不那麼樂觀。我看不出有任何理由表明我們不能長期恢復到 20% 加上 20 多歲中期的營業利潤率。我們必須證明歐洲戰略和擴張。我認為我們必須聰明地分配資金、構建基礎設施以及保持簡單。

I think our strategy, I think it's unique. We're not duplicating corporate roles in Europe. We're not looking at Europe as a separate business with a separate infrastructure besides our supply chain distribution piece, but that too is even an extension of what we do in the U.S. So we look at the world differently than I think most people before us and historically have looked at a global expansion. I mean we kind of look at countries in Europe like states in the United States almost, except there's -- the borders are different. There's some uniqueness there. But we run our business very well in North America. And from our view, we're building really a global leadership team.

我認為我們的策略是獨一無二的。我們不會在歐洲重複企業角色。除了我們的供應鏈分銷部分之外，我們並沒有將歐洲視為一個擁有獨立基礎設施的獨立企業，但這甚至是我們在美國所做工作的延伸。所以我們看待世界的方式與我認為我們之前的大多數人不同從歷史上看，他們一直在關注全球擴張。我的意思是，我們看待歐洲國家的方式幾乎與美國的國家相似，只是邊界不同。那裡有一些獨特之處。但我們在北美的業務經營得很好。從我們的角度來看，我們正在建立一個真正的全球領導團隊。

And it's kind of a global organization that will lead and oversee the business in an identical way that we do in North America, except that there is some unique differences within the countries. So we try to keep it simple. And if we get any kind of reasonable demand and business, we should be able to begin to leverage the initial investments in supply chain and so on and so forth that are -- that create some deleverage initially. I think we have a wholly white really to kind of address how to physically open the brand in the U.S. So we don't have to reverse engineer that.

它是一個全球性組織，將以與我們在北美相同的方式領導和監督業務，只是國家內部存在一些獨特的差異。所以我們盡量保持簡單。而且，如果我們得到任何合理的需求和業務，我們應該能夠開始利用供應鍊等方面的初始投資，這些投資最初會產生一些去槓桿作用。我認為我們真的有一個完全白人來解決如何在美國實際打開品牌的問題，所以我們不必對其進行逆向工程。

We don't -- when I began here, we had 106 legacy stores that weren't designed for the vision of the business that we had. And so we've had to reverse engineer this thing and go from taking a really nothing about the infrastructure was correct for the brand with -- here we've got clean slate building the right infrastructure for the brand. They deliver furniture in Europe, that's not unique to North America. Furniture gets delivered every day. There's all kinds of things that happen. What we're not entirely sure of is if the consumer is generally aware of our brand at the high end.

我們沒有——當我開始這裡時，我們有 106 家傳統商店，它們不是為我們的業務願景而設計的。因此，我們不得不對這件事進行逆向工程，從對品牌的基礎設施一無所知——在這裡，我們已經有了為品牌構建正確基礎設施的白板。他們在歐洲運送家具，這並非北美獨有。家具每天都會送到。有各種各樣的事情發生。我們不完全確定的是，消費者是否普遍了解我們的高端品牌。

But humans are -- we're creatures of habit. So we have habits of shopping in different places and going to different places when we think about our needs and wants. And so we have to kind of change those habits and identify RH as a more inspiring and attractive place to allocate capital from a consumer point of view. And we think our assortment, especially as you see us go through this transformation, over the next several months, we think it's unmatched in the world. We think our design leadership, our quality and then the value equation for that design and that quality, we think our value equation is as disruptive as ever.

但人類是——我們是習慣的生物。所以當我們考慮我們的需求和想要的時候，我們有在不同地方購物和去不同地方的習慣。因此，我們必須改變這些習慣，並將 RH 確定為一個更具啟發性和吸引力的地方，從消費者的角度來分配資本。我們認為我們的產品種類，尤其是當你看到我們在接下來的幾個月裡經歷這種轉變時，我們認為它在世界上是無與倫比的。我們認為我們的設計領導力，我們的質量，然後是該設計和該質量的價值方程式，我們認為我們的價值方程式與以往一樣具有破壞性。

And if I look back and I'd say, where did we maybe kind of not optimize our business the last couple of years with the tariff hits from the cost level, the supply chain costs that went up all through COVID, the price changes that we're taking, and then when you have the easy business, I think our value equation suffered. And I think our value equation is going to be swung in a direction where it will be unmatched in the marketplace.

如果我回顧過去，我會說，在過去的幾年裡，我們可能在哪些方面沒有優化我們的業務，因為成本水平受到關稅的影響，供應鏈成本在 COVID 期間一直上漲，價格變化我們正在接受，然後當您擁有輕鬆的業務時，我認為我們的價值方程式受到了影響。而且我認為我們的價值方程式將朝著在市場上無與倫比的方向擺動。

And that's really important, no matter what country you're in, right? People first look at the design of a product. If the design of the product is not good, you just don't walk up to it or you turn the page. So you have to have great design. People have to see and be attracted to the product or nothing else matters. The next thing you have to win on is you have to win in quality. And so consumers are going to look at the design, if they love the design, they're going to get closer. They're going to look closer. They're going to walk up to it, touch it, interact with it, and they'll make a perception about quality.

這真的很重要，不管你在哪個國家，對吧？人們首先看產品的設計。如果產品的設計不好，你就不會走過去，或者翻頁。所以你必須有很棒的設計。人們必須看到並被產品所吸引，否則其他都不重要。接下來你必須贏得的是你必須在質量上取勝。所以消費者會關注設計，如果他們喜歡設計，他們就會更親近。他們會仔細觀察。他們會走近它，觸摸它，與之互動，然後他們會對質量有一個看法。

And then the next thing they'll do if they're interested is they'll look at the price. And for that design and that quality, do they perceive that product is a good value, a great value or not a value? And then that will create the decision to purchase or not purchase, right? And that's why everything we do is through a lens of design, quality and value. And I think if I look back and critically look at what happened over the last, call it, 3, 4 years with all the conflict with China, the tariffs, all the dislocation of supply chains and all the increase in freight, increase in raw materials, increase in product costs, so on and so forth, and then an easy demand environment. I think the world took prices up, and we all know that because inflation went to 40-year highs, right? And that is going to affect things.

然後，如果他們感興趣，他們接下來要做的就是查看價格。對於那種設計和那種質量，他們認為該產品是物有所值、物有所值還是物有所值？然後這將決定購買或不購買，對嗎？這就是為什麼我們所做的一切都是通過設計、質量和價值的鏡頭。我認為，如果我回顧並批判性地審視過去發生的事情，可以稱之為 3、4 年與中國的所有衝突、關稅、供應鏈的所有錯位以及運費的所有增加、原材料的增加材料，產品成本的增加等等，然後是一個寬鬆的需求環境。我認為世界價格上漲，我們都知道這是因為通貨膨脹達到 40 年來的最高點，對吧？這會影響事情。

And I think we're probably somewhat too arrogant in our ability to raise pricing in an easy demand environment. And as the easy demand environment has waned and it's required us to kind of really challenge is our value equation going to create the level of demand that we believe is right for the business. And so that's -- I think people are going to really respond to this new product transformation. I think it is the best design we've ever done. The quality is really outstanding, the level of detail and the work we've done that has gone into it. And because we've now had some experience with Italy with Italian upholstery, Italian sofa, so on and so forth and other places, people see that we actually can scale and have the ability to create efficiencies at the higher end of the market that our value equation is going to be significantly better, at very high margins.

而且我認為我們在輕鬆的需求環境中提高價格的能力可能有點過於自大。隨著輕鬆的需求環境已經減弱，這需要我們真正挑戰的是我們的價值方程式將創造我們認為適合業務的需求水平。所以這就是——我認為人們會對這種新產品轉型做出真正的反應。我認為這是我們做過的最好的設計。質量非常出色，細節水平和我們所做的工作已經融入其中。因為我們現在在意大利的室內裝潢、意大利沙發等和其他地方有了一些經驗，人們看到我們實際上可以擴展並有能力在我們的高端市場創造效率價值方程式將明顯更好，利潤率非常高。

So I wouldn't say the value equation is going to result in a lower margin structure than we've run. It may result once we've cycled through, just the discontinued product that we have to move through to transition to this next kind of climb and step of the luxury mountain for our brand. I think it's going to be the best value proposition we've ever had because we've really worked on it. And we've really just super critical thinking and really challenging and really looking at the competitive environment and the current environment from a broad point of view, like up and down the food chain. And to make sure that we are disruptive not just at the high end, we're disruptive, I'm not saying going all the way down to the low end, but in some of the cases, I mean we're disruptive everywhere. And I think when you do that, it's -- that's when you can get a real outsized share of the market.

所以我不會說價值方程式會導致比我們運行的利潤率結構更低。一旦我們循環通過，它可能會導致我們必須經歷的停產產品才能過渡到我們品牌的下一次攀登和攀登豪華山峰。我認為這將是我們曾經擁有的最好的價值主張，因為我們真的為此付出了努力。我們真的只是超級批判性思維，真正具有挑戰性，真正從廣泛的角度看待競爭環境和當前環境，比如食物鏈的上下游。為了確保我們不僅在高端具有破壞性，我們具有破壞性，我並不是說一直到低端，但在某些情況下，我的意思是我們在任何地方都具有破壞性。而且我認為當你這樣做時，就是 - 那就是你可以獲得真正超大市場份額的時候。

Your next question comes from Curtis Nagle with Bank of America.

你的下一個問題來自美國銀行的 Curtis Nagle。

So coming along same lines of Simeon's questions, Gary, just love to hear an update on the contemporary line. Fully realized, you had an abnormal year, of course. But just in terms of how many galleries it's been rolled out to and what the reception has been for the ones where it's been in place or, I guess, an appropriate amount of time where it could be judged in terms of the reception.

因此，按照西蒙的問題，加里，我很想听聽有關當代線路的最新消息。完全意識到，你當然度過了不正常的一年。但就它被推廣到多少畫廊以及它已經到位的畫廊的接待情況而言，或者我想，可以根據接待來判斷它的適當時間。

Yes, I'd say we're happy with the response of contemporary considering the environment. It's only been rolled out to 4 galleries. And the reason why we didn't push it further is because we have so much more newness and so many more choices to think about moving into the business. So we've held some of it back because I think contemporary say, it's the worst level of execution from what I'd say the disruptive value equation, right?

是的，我想說我們對當代人對環境的反應感到滿意。它只推廣到 4 個畫廊。我們之所以沒有進一步推動它，是因為我們有更多的新鮮事物和更多的選擇來考慮進入這個行業。所以我們阻止了其中的一些，因為我認為當代人說，這是我所說的破壞性價值方程式中最糟糕的執行水平，對吧？

I think that's where I'd be most critical of us. Some of the price points just hit highs that, again, maybe in a tailwind and a COVID, everybody is buying everything and everybody wants everything tomorrow. And you're in the biggest migration from cities to suburbs and second-home markets in any history we've seen. I think we're just too aggressive with the pricing, too arrogant maybe to some degree.

我認為那是我對我們最挑剔的地方。一些價格點剛剛觸及高點，也許在順風和 COVID 的情況下，每個人都在購買一切，每個人明天都想要一切。在我們所見過的任何歷史上，您都處於從城市到郊區和二手房市場的最大遷移中。我認為我們在定價方面過於激進，在某種程度上可能過於傲慢。

And so we've relooked at that. We've looked at the sourcing, we've challenged everything. And I think as you see how -- what's coming, whether you're looking at interiors or contemporary or modern, you're just going to see a real meaningful value equation connected to design and quality leadership that will change the trajectory of everything, including in contemporary.

所以我們重新審視了這一點。我們研究了採購，我們挑戰了一切。我認為，正如你所看到的——即將發生的事情，無論你是在看室內設計、當代還是現代，你都會看到一個真正有意義的價值方程式，它與設計和質量領導力相關聯，這將改變一切的軌跡，包括在當代。

So contemporary, look, if you looked at it with the context compared to modern, things like that, off to a really good start. But if you look at it compared to the work we're about to unveil you go, oh, it's just the next level of transformation from a product point of view, I think it's kind of it's like having a trump card. And again, it's just going to win, we believe.

如此現代，看，如果你將它與現代相比，這樣的背景來看待它，這是一個非常好的開始。但是，如果你將它與我們即將推出的作品進行比較，你會發現，哦，從產品的角度來看，這只是下一個層次的轉變，我認為這有點像擁有一張王牌。再一次，我們相信它會贏。

So yes, I look at contemporary not just in isolation, but integrated with the broader thing. I think everything, every interior and modern are going to look entirely new and different. Contemporary is going to also look pretty new and unique. There's a lot of new collections contemporary. Collections -- Contemporary, what do we have? 5? 4 full furniture collections. And that will, I think, more than double, right? Yes. So contemporary, you're really seeing this next phase is a much more robust assortment.

所以是的，我不只是孤立地看待當代，而是與更廣泛的事物相結合。我認為一切，每一個室內設計和現代設計都將煥然一新。當代風格也將看起來非常新穎和獨特。有很多當代的新系列。收藏——當代，我們有什麼？ 5？ 4 個完整的家具系列。我認為，這將增加一倍以上，對嗎？是的。如此現代，您真的會看到下一階段是一個更加強大的分類。

Okay. Great to hear and really helpful. One other just quick follow-up. Gary, just curious to hear a little bit more detail on the format for Cleveland and Palo Alto. I know Palo Alto, I think, is a little smaller, like 25,000 square feet. But anything else in terms of perhaps that was sorted layup at -- just curious, yes, to hear more about that format that you mentioned.

好的。很高興聽到，真的很有幫助。另一個只是快速跟進。加里，只是想听聽有關克利夫蘭和帕洛阿爾托賽制的更多細節。我知道帕洛阿爾托，我想，有點小，大約 25,000 平方英尺。但其他任何關於可能分類上籃的東西 - 只是好奇，是的，想听聽更多關於你提到的那種格式的信息。

Yes. In a lot of ways, it represents an aesthetic change and a freshening, you'll see us begin to evolve away from gray and create, really, the platform for where the goods are going. We've kind of written the gray wave for the last, I don't know, 14 years or so. And there's big cycles in product. People ask me a lot, "Hey, what's next? And how do you know what's next? And where do the trends come from?"

是的。在很多方面，它代表了一種審美變化和清新，你會看到我們開始擺脫灰色，創造真正的商品流通平台。我們已經寫了最後一個灰色浪潮，我不知道，大約 14 年。產品週期很大。人們經常問我，“嘿，下一步是什麼？你怎麼知道下一步是什麼？趨勢從何而來？”

And I like to say the trends in our business come from the dead. Generations pass away. Their belongings go to estate sales. Estate sales be -- the high end of antique -- the antique markets really what drives the high end in pure design market, then that is -- goes into the high-end reproduction market and then it starts to trickle down from there.

我想說我們業務的趨勢來自死者。世世代代逝去。他們的財產用於房地產銷售。房地產銷售是——古董的高端——古董市場真正推動了純設計市場的高端，那就是——進入高端複製市場，然後它開始從那裡滴下來。

And if you look at kind of the major trends, whether it was what I call the Belgian European look that we kind of exploded at a commercial level throughout the United States in 2009, '10, '11, '12, '13, we made probably the biggest move in modern. If you look at the mid-century movement that started to roll through and you can kind of time things back.

如果你看一下主要趨勢，無論是我所說的比利時歐洲風格，我們在 2009 年、'10、'11、'12、'13 期間在整個美國的商業層面上爆炸，我們可能是現代最大的一步。如果你看看開始滾動的世紀中葉運動，你可以把時間倒回去。

If you look at when are consumers generally in their peak buying years for furniture, it used to be 40 to 50s because there was a shorter life span. Life spans had gotten longer. The high end of the demographic that has the greatest access to health care and are more focused on longevity and fitness and eating well. I think it's now up to 87 years old, right?

如果你看一下消費者一般在什麼時候是他們購買家具的高峰期，過去是 40 到 50 歲，因為壽命更短。壽命變長了。擁有最多醫療保健機會並且更注重長壽、健身和健康飲食的高端人口。我想現在已經87歲了吧？

And so what that does is it pushes up as people get older and more wealthy, there's more focus on the home until they can't really use their home. They get to an age where they're just not really mobile and they can't enjoy as much.

因此，隨著人們年齡的增長和財富的增加，它的作用是推高了房屋，直到他們無法真正使用房屋為止。他們到了一個不能真正移動並且不能享受那麼多的年齡。

But if you look and -- say, if you look back in the 1950s, you'd say 40 to 50 really the peak buying years for furniture, for real furniture. People get to an age where they're in the second or third home in their life stage and they've done well financially and they can afford to furnish a home. And then if you look at the average life span and how old people are today, well, now those people are really old, right? So that cycle has now moved through.

但是如果你看——比如，如果你回顧 1950 年代，你會說 40 到 50 真的是家具、真正家具的購買高峰期。人們到了人生階段的第二個或第三個家的年齡，他們的經濟狀況良好，並且有能力提供房屋。然後，如果你看看現在的平均壽命和人們的年齡，那麼，現在那些人真的很老了，對吧？所以這個週期現在已經過去了。

Mid-century modern is a waning trend. The next cycle that went through was actually called contemporary. That's why we launched Contemporary. The contemporary trend has really happened in the '70s and '80s. And then in the later '80s, that trend had moved to kind of eclecticism and mixing more contemporary things with antiques and so on and so forth. And so if you just look at those cycles, the cycles tend to come back through. And so what you want to think about is what is the right platform for kind of those kind of trends or those influences.

中世紀的現代是一種減弱的趨勢。經歷的下一個週期實際上被稱為當代。這就是我們推出 Contemporary 的原因。當代潮流真正發生在 70 年代和 80 年代。然後在 80 年代後期，這種趨勢已經轉向某種折衷主義，將更多現代事物與古董等相結合。所以如果你只看那些週期，週期往往會回來。所以你要考慮的是什麼是適合這些趨勢或影響的平台。

And not that we have a brand that's a trendy brand because everything gets filtered through an RH point of view and how we how we interpret the trends and how we present the trends, but you -- I'd say as I looked at retail throughout my career, one of the things I've been critical of others is I've just seen people create a retail concept and then roll out 300 stores and 7 to 10 years later, they are all old and tired. And it becomes a dead concept.

並不是說我們擁有一個時尚品牌，因為一切都通過 RH 的觀點以及我們如何解釋趨勢和呈現趨勢的方式進行過濾，但是你——我會說，當我觀察整個零售業時在我的職業生涯中，我一直批評別人的一件事是我看到人們創造了一個零售概念，然後推出了 300 家商店，7 到 10 年後，他們都老了，累了。它變成了一個死的概念。

And the platform that you place your product in is either going to render that product more valuable or less valuable. And so as we look at our product transformation, and this is really the largest product transformation in the history of our brands, is our platform prepared to render that product more valuable.

您放置產品的平台要么使該產品更有價值，要么使該產品更不值錢。因此，當我們審視我們的產品轉型時，這確實是我們品牌歷史上最大的產品轉型，我們的平台是否準備好讓該產品更有價值。

Now the good news is, from an architecture point of view, they're beautifully architected and timeless buildings and they're perfectly balanced and symmetrical. They have fresh air, natural light. They're proportioned correctly, all the things, you wouldn't change anything the building. So a lot of the buildings we built, right, I mean can arguably stand up to great historical architecture, it's all the same principles. But the way we skin them, no different than what are the surfaces to finish is the colors of the background and how they're presented, what is that canvas, that background look like is very, very important.

現在好消息是，從建築學的角度來看，它們是建築精美、永恆的建築，而且它們完美地平衡和對稱。他們有新鮮空氣，自然光。它們比例正確，所有的東西，你不會改變建築物的任何東西。所以我們建造的很多建築，對，我的意思是可以說可以經得起偉大的歷史建築，它們都是相同的原則。但是我們給它們蒙皮的方式，與要完成的表面沒有什麼不同，就是背景的顏色和它們的呈現方式，畫布是什麼，背景看起來如何，這非常非常重要。

So in a lot of cases, it's kind of an aesthetic surfacing kind of feelings that will be, I think, more relevant and exciting canvas and background to amplify the product. But the logic of our galleries and how they're laid out is very scientific and architecturally timeless and relevant, so. But it will look very fresh and new to a consumer. No different than when we do like 2009, '10, we took all of our galleries from silver sage paint and white trim and blond maple floors. And they went to all gray with gray wash floors. I mean that was 14, 15 years ago.

所以在很多情況下，這是一種美學表面的感覺，我認為，這種感覺更相關、更令人興奮的畫布和背景可以放大產品。但是我們畫廊的邏輯和它們的佈局是非常科學的，在建築上是永恆的和相關的，所以。但對於消費者來說，它看起來會非常新鮮。與我們在 2009 年 10 年所做的沒什麼不同，我們將所有的畫廊都從銀色鼠尾草漆和白色裝飾和金色楓木地板中取出。他們用灰色的洗地板變成了灰色。我的意思是那是 14、15 年前。

So I always think about the cycles are generational, right? And if you -- the definition of the generations is 15 to 20 years, right? And so every 15 years or so, there's -- I think there's generally a major move to make. And every 7 or 8 years, there's also, in between, cycles of refresh.

所以我一直認為周期是世代相傳的，對吧？如果你——世代的定義是 15 到 20 年，對嗎？因此，每 15 年左右，我認為通常會有重大舉措。每 7 年或 8 年，其間還有更新周期。

This is the next major move from a product point of view and just making sure everything is presented on the right platform and the right canvas that renders the product more valuable. So you'll see these new ones start to happen, then you'll see us go through the platform over the next several years and update, I'd say, every gallery to aesthetically just colors, walls, paint, finishes. Possibly replastering the outside of galleries from gray to a beautiful blush color that we think is the right canvas for the next 10 to 15 years.

從產品的角度來看，這是下一個重大舉措，只是確保所有內容都呈現在正確的平台和正確的畫布上，從而使產品更有價值。所以你會看到這些新的開始出現，然後你會看到我們在接下來的幾年里通過這個平台更新，我想說，每個畫廊都在美學上只是顏色、牆壁、油漆、飾面。可能將畫廊的外部重新粉刷成灰色，我們認為這是未來 10 到 15 年的合適畫布。

And Curt, it's Jack. One thing to add on your size question. Palo Alto is basically the same size as Corte Madera. So it's -- I think you mentioned 25,000. It's not that about 48,000 and Cleveland just around the same size.

柯特，是傑克。在您的尺寸問題上添加一件事。 Palo Alto 基本上和 Corte Madera 一樣大。所以它 - 我想你提到了 25,000。這並不是說大約 48,000 人，而克利夫蘭的規模差不多。

Your next question comes from Steve Forbes with Guggenheim.

你的下一個問題來自古根海姆的史蒂夫福布斯。

I wanted to ask about regional trends during the quarter. Are you seeing any disparity by reaching anything that either builds on optimism or caution right around the revised revenue outlook you guys provided?

我想問一下本季度的區域趨勢。通過圍繞你們提供的修訂後的收入前景達成任何建立在樂觀或謹慎基礎上的事情，你們是否看到任何差異？

Steve, there's always regional differences. Just echo prior comments, we don't really comment on those unless they're so massive that they stand out like oil markets one year did. So there's nothing that we would share to read into any trends on that.

史蒂夫，地區差異總是存在的。只是回應之前的評論，我們不會真正對這些評論發表評論，除非它們如此龐大以至於它們像一年的石油市場一樣脫穎而出。因此，我們不會分享任何內容來了解這方面的任何趨勢。

Then maybe just a quick follow-up, given your comments around the holistic value equation and improving across the portfolio. Any comment on the potential magnitude of input or supply chain cost relief that you see on the horizon here?

然後可能只是快速跟進，考慮到您對整體價值方程式的評論和整個投資組合的改進。對您在這裡看到的潛在投入或供應鏈成本降低幅度有何評論？

On supply chain costs, look at specifically, you're talking about like ocean freight?

關於供應鏈成本，具體看，你說的像海運？

Any cost relief, right, that would maybe help fund a better value proposition.

任何成本減免，對吧，這可能有助於為更好的價值主張提供資金。

Well, we've been getting that. And that's, I think, Gary mentioned that at the last call or the prior call when someone asked about select price changes. But we've already been seeing some cost relief that we're putting back into product prices. From a supply chain and ocean freight perspective, I mean we're at a point, given our turn and given the way our team approaches getting the best rates for the sailings, we're in a -- it's accretive. Or on the other side, the ocean freight contracts were past the bad news of May 2022, and we're into sort of a lift now, a slight lift in the margin from that good news.

好吧，我們已經明白了。我認為，當有人詢問選擇價格變化時，加里在最後一次電話或之前的電話中提到了這一點。但我們已經看到一些成本降低，我們正在將其重新投入到產品價格中。從供應鍊和海運的角度來看，我的意思是我們正處在一個點上，輪到我們了，並且考慮到我們的團隊接近獲得最優惠航行費率的方式，我們處於 - 它是增值的。或者另一方面，海運合同已經過去了 2022 年 5 月的壞消息，我們現在處於某種提振狀態，從那個好消息中略微提高了利潤率。

Your next question comes from Michael Lasser with UBS.

你的下一個問題來自瑞銀的 Michael Lasser。

Gary, as you had mentioned before that you might have been too aggressive with increasing some pricing. And in the past, you've talked about pivoting to serve a more affluent consumer and that might eliminate your addressable market. Should we interpret some of your current thinking to be maybe we have to peel back to serve a broader community of customers at maybe lower price points because that would ultimately drive the sales of the business higher and, in turn, the profitability of the business higher?

加里，正如你之前提到的，你可能過於激進地提高了一些價格。過去，您曾談到要轉向服務更富裕的消費者，這可能會消除您的潛在市場。我們是否應該將您當前的某些想法解釋為，也許我們必須縮減成本，以可能更低的價格為更廣泛的客戶群體提供服務，因為這最終會推動業務的銷售額更高，進而提高業務的盈利能力？

I'd say -- again, I start with the lens of design, quality and value, right? And I think we've been most successful when we won with design, we have the best design in the market. That design is at a quality level that's appreciated and respected. And for that design and quality, the value we create with equation is disruptive, clearly, to the market above us. If you look at any people left and right, massively disruptive and even disruptive to slightly below us, just because we really have the biggest platform, right? So we have the ability to have real scale.

我會說——再一次，我從設計、質量和價值的角度出發，對吧？而且我認為我們在設計方面獲勝時是最成功的，我們擁有市場上最好的設計。該設計的質量水平受到讚賞和尊重。對於這種設計和質量，我們用 equation 創造的價值顯然對我們上方的市場具有破壞性。如果您左右觀察任何人，他們具有巨大的破壞性，甚至破壞性略低於我們，只是因為我們確實擁有最大的平台，對嗎？所以我們有能力擁有真正的規模。

And I think as we launched contemporary, been moving the brand up, when demand is easy like it was through the event of COVID and the migration that happened because of COVID and the focus on the home because people can't travel and the shifts in spending big market segments, when demand is really easy, and you can get higher prices, you tend to take them. And then all of a sudden, it blips and it makes you reevaluate.

而且我認為，當我們推出當代品牌時，一直在提升品牌，當需求很容易就像通過 COVID 事件和由於 COVID 發生的遷移以及由於人們無法旅行而對家庭的關注以及消費大的細分市場，當需求真的很容易，而且你可以獲得更高的價格時，你就會傾向於接受它們。然後突然間，它突然出現，讓你重新評估。

So as we reevaluate just where our pricing was and has been, I just think through -- you've got to remember, we went through a big pricing cycle increase because of tariffs, right? And then we went through a massive supply chain disruption and raw goods, raw material costs going up, labor going up everything is going up, freight going up that massively impacted pricing. And so I'd say probably we as -- probably anybody in our industry, optimize what you could get. And I think that you're going to see some people repricing things and trying to optimize whatever market you're going after.

因此，當我們重新評估過去和過去的定價時，我只是想一想——你必須記住，由於關稅，我們經歷了一個大幅的定價週期增長，對吧？然後我們經歷了大規模的供應鏈中斷和原材料，原材料成本上漲，勞動力上漲，一切都在上漲，運費上漲，這極大地影響了定價。所以我想說可能我們——可能是我們行業中的任何人，優化你能得到的東西。而且我認為你會看到一些人重新定價並試圖優化你追求的任何市場。

So ours is a little trickier because we're moving up, right? And we're trying to get a more affluent consumer and get a bigger piece of their wallet because they spend exponentially more in the home. Not a little bit more, exponentially more. I mean customers above aren't worth a little bit more. They might be worth 10x more. You think about the peak of the pyramid. It's like flipping the pyramid upside down when you look at spending on the home at the really affluent levels.

所以我們的有點棘手，因為我們正在向上移動，對吧？我們正在努力吸引更富裕的消費者，並從他們的錢包中掏出更多的錢，因為他們在家裡的花費呈指數增長。不是一點點，而是成倍增加。我的意思是上面的顧客一點兒都不值錢。它們的價值可能高出 10 倍。你想想金字塔的頂峰。當您查看真正富裕階層的家庭支出時，這就像把金字塔倒過來一樣。

And so we are still going after those customers. We've got to win there on design and quality. And our value will be massively disruptive there because we're only the only platform with scale in the entire world in these products. And so when RH creates a relationship with anybody from a manufacturing point of view, it's a big deal to those people because we can change their lives. And if they put their product on our platform, it changes everything. But we've got to always think about that's a great value. If it's not a great value, people will look around.

所以我們仍在追求這些客戶。我們必須在設計和質量上取勝。我們的價值將在那裡產生巨大的破壞性，因為我們是全世界唯一在這些產品中具有規模的平台。因此，當 RH 從製造的角度與任何人建立關係時，這對這些人來說意義重大，因為我們可以改變他們的生活。如果他們將他們的產品放到我們的平台上，一切都會改變。但我們必須始終認為這是一個巨大的價值。如果它不是一個很大的價值，人們就會四處看看。

And -- but if it is a great value, and they trust you for that value equation, they don't even have to think about it. And I think in the age of the Internet, you have so much more visibility. You have so many more prices. You have so many more choices, it's harder to distinguish, I'd say, both design and quality online. And -- but I think that all works its way out at the end because if you buy something and you thought it was really a great value and you get a piece of (expletive) in the mail and the quality is (expletive) or the finish is (expletive) and it's not good, you're going to return it. You're never going to shop there again.

而且 - 但如果它是一個很大的價值，並且他們相信你的價值等式，他們甚至不必考慮它。我認為在互聯網時代，你的知名度要高得多。你有更多的價格。你有更多的選擇，很難區分，我想說，在線設計和質量。而且——但我認為最後一切都會解決，因為如果你買了東西，你認為它真的很有價值，你會在郵件中收到一件（髒話），質量是（髒話）或完成是（咒罵）而且不好，你要退貨。你再也不會去那裡購物了。

So that will all shake out over time, like all the marketplaces and all this other stuff. I think those will all really serve branded products that you know like consumer goods and things like that. You know you're buying some toothpaste or whatever you're buying, you know it's from the brand. It's what you buy. And -- but when you have a lot of blind product, and our industry is, I'd say, more blind product than branded product. Sometimes it's a little confusing for a customer. But it all works itself out.

所以隨著時間的推移，這一切都會發生變化，就像所有的市場和所有其他東西一樣。我認為這些都將真正服務於您所知道的品牌產品，例如消費品等。你知道你在買牙膏或任何你要買的東西，你知道它來自品牌。這是你買的。而且 - 但是當你有很多盲品時，我會說我們的行業比品牌產品更多的是盲目產品。有時這會讓客戶感到困惑。但這一切都會自行解決。

Like if you go on to -- name your marketplace, there's just an endless aisle of choices. One, they're not curators. Two, not from a design point of view or not from a quality point of view and not from an aesthetic case point of view, so our platform really is unique in the world today. And I think what we're doing next is going to prove that. So I think you're always -- every business is going like how big is that market? And where do I go and so on and so forth.

就像如果你繼續——為你的市場命名，就會有無窮無盡的選擇。第一，他們不是策展人。第二，不是從設計的角度，不是從質量的角度，也不是從審美的角度，所以我們的平台在當今世界確實是獨一無二的。我認為我們接下來要做的就是證明這一點。所以我認為你總是——每個企業都在想這個市場有多大？我要去哪裡等等等等。

I think it's really difficult. Yes, I think it's difficult for any of us in this home industry where all of a sudden, boom, your demand goes up 40 points, then it goes down 40 points. Then it goes up 40. And all of a sudden, you can't get -- you have too much goods, and you don't have enough goods and anything you can throw out there. Customers want -- can you furnish my house next week, and so on and so forth.

我覺得真的很難。是的，我認為對於我們這個家居行業的任何人來說都很難，突然間，繁榮，你的需求上升了 40 個百分點，然後又下降了 40 個百分點。然後它上升到 40。突然之間，你無法得到——你有太多的商品，而且你沒有足夠的商品和任何你可以扔掉的東西。客戶想要——你能在下週為我的房子提供家具嗎，等等。

And then all of a sudden, you get on the other side of COVID, and then you compound that with the inflation, which required the fastest rise of interest rates in history, which firm grasp of the obvious, that's not good for mortgage rates or the housing market. And you go -- it makes you reexamine everything, which you should. And so I think the key becomes how do you act on that other side?

然後突然間，你就站在了 COVID 的另一邊，然後你把它與通貨膨脹結合起來，這需要歷史上最快的利率上升，這對顯而易見的事情有著堅定的把握，這對抵押貸款利率或房地產市場。然後你走了——它讓你重新審視一切，這是你應該做的。所以我認為關鍵在於你如何在另一邊採取行動？

Like for instance, people ask me about this all the time. Oh, you might be losing more market share, this and that. Well, you have to say, what's the quality of the market share? Could we push a promotional button today? Can I start sending out sale e-mails like everybody else did? And does it matter whether you're doing -- whatever promotions you're -- call it site-wide promotions, everybody is trying to kind of create a bail of kind of non-transparency out there, what they're doing.

例如，人們總是問我這個問題。哦，你可能會失去更多的市場份額，這個那個。那麼，你不得不說，市場份額的質量如何？我們今天可以按下促銷按鈕嗎？我可以像其他人一樣開始發送銷售電子郵件嗎？不管你在做什麼——不管你在做什麼促銷——稱之為全站促銷，每個人都在努力創造一種不透明的保釋，他們在做什麼。

If you're promoting the business and you're sending sale e-mails, like you're going to be known as a promotional business. And you're also creating, I'd say, a layer of long-term, low-quality revenues, right? Those will never be high-quality revenues. You've got to put categories on sale or whatever on sale to get those revenues, right? Well, you've got to put all those products on sale. So how many people would have bought your product at full price at really healthy margins?

如果您正在推廣業務並發送銷售電子郵件，就像您將被稱為促銷業務一樣。而且你也在創造，我會說，一層長期的，低質量的收入，對吧？這些永遠不會是高質量的收入。你必須將類別或任何東西進行銷售才能獲得這些收入，對嗎？好吧，你必須把所有這些產品都出售。那麼有多少人會以真正可觀的利潤率全價購買您的產品？

And then for the incremental lift, how much margin did you have to get back across everything that you marked down? Whether it's site-wide or category or if it's only bed and bath or it's lighting, now you're doing a lighting sale or now you're putting all this on sale. I mean interesting, not relevant, but what are your e-mail say? Like just look at the e-mails and look at the sale banners, on all the e-mails and look at the things Memorial Day sales, this sale, this sales, that sale, all hitting you right now. Those people are all going to affect their model long term.

然後對於增量提升，您需要多少利潤才能收回您標記的所有內容？無論是整個站點還是類別，或者只是床和浴室，還是照明，現在您都在進行照明銷售，或者現在您正在銷售所有這些。我的意思是有趣，不相關，但是你的電子郵件說了什麼？就像看看電子郵件，看看促銷橫幅，在所有電子郵件上，看看陣亡將士紀念日的促銷活動，這次促銷，這次促銷，那個促銷，現在都在打擊你。這些人都會長期影響他們的模型。

I'd rather give away lower-value market share long term, low-quality market share long term. Hold to our pricing integrity and our messaging that's more about design and quality. And just transform the business for the next cycle. And if we're successful, which we've been, I don't know, this is my 23rd year here. We've done this a lot of times. We've transformed a lot of times. We've been through all kinds of cycles here. This is not a new leadership team.

我寧願長期放棄低價值的市場份額，長期放棄低質量的市場份額。堅持我們的定價誠信和我們更多關於設計和質量的信息。並為下一個週期轉變業務。如果我們成功了，我們已經成功了，我不知道，這是我在這裡的第 23 個年頭。我們已經做過很多次了。我們已經改變了很多次。我們在這裡經歷了各種循環。這不是一個新的領導團隊。

So we like what we see next, but you just have to take a longer-term view. So that's why I always say people ask me, "Should I buy your stock?" And I ask them, are you a trader or are you an investor? Well, if you're a trader, you're looking for short-term episodic moments and ups and downs and trying to optimize. And if you're a trader, don't buy our stock because we're making long-term moves. If you're long-term holder and you want to be on a winning side, I mean look at our performance over 20 years.

所以我們喜歡我們接下來看到的，但你只需要採取更長遠的眼光。所以這就是為什麼我總是說人們問我，“我應該買你的股票嗎？”我問他們，你是交易員還是投資者？好吧，如果您是一名交易員，您正在尋找短期的偶發時刻和起伏並嘗試優化。如果您是交易員，請不要購買我們的股票，因為我們正在做長線交易。如果你是長期持有者並且想成為贏家，我的意思是看看我們 20 年來的表現。

Look at our performance even over the last 5 years, and you're going to be a happy shareholder. Look at our performance if you bought us during COVID or different times and you thought everything was going to stay that way forever. We'll, okay, maybe you're someone who hadn't been through cycles before. Maybe you didn't understand the dynamics of COVID or you read the press and it said, "It's the decade of home."

看看我們過去 5 年的表現，你會成為一個快樂的股東。看看我們的表現，如果您在 COVID 期間或不同時期購買了我們，並且您認為一切都會永遠保持這種狀態。我們會的，好吧，也許你是一個以前沒有經歷過週期的人。也許您不了解 COVID 的動態，或者您閱讀了媒體並說：“這是家庭的十年。”

It's not the decade of home. It was a goddamn pandemic. That's what it was. That's exact same thing. But now we're on the other side of it. Now we're at high interest rates. What are the choices people are making and what are going to be long-term choices and what are going to be high-quality choices? If I was worried about the stock price on a quarter-to-quarter, year-to-year basis, I don't know, some CEO that had a short-term view and wanted their stock options to divest and sell out at the right time, I might push the promotional buttons.

這不是家的十年。那是一場該死的大流行病。就是這樣。那是完全一樣的事情。但現在我們在它的另一邊。現在我們的利率很高。人們正在做出哪些選擇，哪些是長期選擇，哪些是高質量的選擇？如果我擔心按季度、按年計算的股價，我不知道，有些 CEO 目光短淺，希望他們的股票期權在合適的時候，我可能會按下促銷按鈕。

Just like -- I'm the largest shareholder of the company. It's taken me a long time to get here, not going anywhere. And we're going to do the right things that are going to reward long-term shareholders and investors.

就像——我是公司的最大股東。我花了很長時間才到這裡，哪兒也不去。我們將做正確的事情來回報長期股東和投資者。

So just a different games, how we look at it and how we think about it. And we'll make tougher long-term decisions than other people will. We'll be an outlier. Sometimes on the lower end like right now, we're clearly somewhat underperforming to other people because we're not pushing promotional button. But over the long term, I think you'll find we're going to be a big winner. And we're very confident about that. It's just during times like these, we look different. And then over the long term, we also look different.

所以只是一個不同的遊戲，我們如何看待它以及我們如何思考它。我們將做出比其他人更艱難的長期決定。我們會成為異類。有時在像現在這樣的低端，我們顯然比其他人表現不佳，因為我們沒有按下促銷按鈕。但從長遠來看，我認為你會發現我們將成為大贏家。我們對此非常有信心。只是在這樣的時期，我們看起來不一樣。然後從長遠來看，我們看起來也會有所不同。

Just so we can calibrate our models and forecast properly, if you had to guess collectively, how much do you think you will roll back price? Is it going to be in the double-digit range? Or on average, 10% across the assortment? Is that a reasonable guess?

只是為了我們可以校准我們的模型並正確預測，如果你不得不集體猜測，你認為你會回滾多少價格？它會在兩位數的範圍內嗎？或者平均而言，整個分類的 10%？這是一個合理的猜測嗎？

I wouldn't say we're rolled back price at a broader level, right? It's -- again, we're going through a major product cycle. Like do you see us lowering price on the Cloud sofa? Yes, we'd lower price -- we have -- when did we introduced the cloud sofa?

我不會說我們在更廣泛的水平上回滾價格，對吧？再次，我們正在經歷一個主要的產品週期。比如你看到我們在 Cloud 沙發上降價了嗎？是的，我們會降低價格——我們有——我們什麼時候推出雲沙發的？

2015.

2015.

2015, right? So we're in our eighth year. So things in their eighth or tenure like that, they start to wane. And you're going to have more -- there's -- I mean, how many sell cloud sofa? Who doesn't get an e-mail every day, another cloud sofa knockoff on TikTok or on this thing or it's a famous sofa.

2015年，對吧？所以我們已經進入第八個年頭了。所以在他們的第八個或任期內的事情，他們開始減弱。而且你會有更多——有——我的意思是，有多少賣雲沙發？誰不是每天都收到一封電子郵件，TikTok 上的另一個雲沙發仿製品，或者在這個東西上，或者它是一個著名的沙發。

So -- but it's also -- it's a sofa that carried us the last 10 years. It's not the sofa that will carry us the next 10 years. And not that I'm telling people don't buy cloud sofa. It's a great sofa. It'll be here in the next 10 years. but I don't expect it to perform the same way. It will just find its new level, so, and we'll be more competitive. But we also -- our manufacturers will be sharpen their pencils, everybody is sharpen their pencils because they want to keep as much market share as possible.

所以——但它也是——它是一張承載了我們過去 10 年的沙發。承載我們未來 10 年的不是沙發。並不是說我要告訴人們不要購買雲沙發。這是一張很棒的沙發。它將在未來 10 年內出現。但我不希望它以同樣的方式執行。它會找到它的新水平，因此，我們將更具競爭力。但我們也——我們的製造商將削尖他們的鉛筆，每個人都削尖他們的鉛筆，因為他們想保持盡可能多的市場份額。

So I wouldn't think -- I wouldn't call it a big rollback. I'd say I think of it really about a spring forward because there's so much newness. You really got to kind of look at where the product is going, not where it's been. And so -- and then also look at what is the current competitive environment and what does it take to be -- to win. And winning on a large scale generally means being disruptive. And again, you have to kind of really look at it through the lens of design, quality and then value based on that design and quality. And I think based on the design and quality that we have coming, I think we're going to be massively disruptive.

所以我不認為 - 我不會稱之為大回滾。我會說我真的認為它是一個春天的前鋒，因為有太多的新鮮感。你真的必須看看產品的發展方向，而不是它曾經去過的地方。因此 - 然後還要看看當前的競爭環境是什麼以及它需要什麼 - 才能獲勝。大規模獲勝通常意味著具有破壞性。再一次，你必須從設計、質量的角度真正看待它，然後基於設計和質量的價值。而且我認為基於我們即將到來的設計和質量，我認為我們將具有巨大的破壞性。

Your next question comes from Seth Sigman with Barclays.

你的下一個問題來自巴克萊銀行的 Seth Sigman。

It's sort of a follow-up to that last question. But just thinking about last quarter, you announced some cost reductions, the $50 million in annualized savings. I guess just in light of the markdown pressures and your demand comments and that this could just last longer, which is not unreasonable, how are you thinking about the potential for further cost reductions and maybe other levers or opportunities to maybe address any other inefficiencies?

這是對最後一個問題的跟進。但想想上個季度，你們宣布了一些成本削減，每年節省 5000 萬美元。我想鑑於降價壓力和您的需求評論，這可能會持續更長時間，這並非不合理，您如何考慮進一步降低成本的潛力以及可能解決任何其他低效率問題的其他槓桿或機會？

Yes. I think we're always looking at that, so. But look, we had a meaningful change in demand. And whenever you have a meaningful change end, whether it's to the positive or the negative, there's going to be investments or you're going to rationalize costs, right? You're going to constantly -- we look at the organization every year, and we try to re-architect the organization based on where we think the business is and where it's going. And we try to always look for efficiencies and always look for better ways to do things.

是的。我認為我們一直在關注這一點，所以。但是看，我們的需求發生了有意義的變化。每當你有一個有意義的改變結束時，無論是積極的還是消極的，都會有投資或者你會合理化成本，對吧？你會不斷地——我們每年都會審視組織，我們會嘗試根據我們認為的業務所在和發展方向來重新構建組織。我們總是努力尋找效率，總是尋找更好的做事方式。

So -- but we had always now, look, if there's a meaningful step down on the outside of it. We're obviously going to have to optimize the organization at that time, that's what we did. So if look, if demand weakens again and so on and so forth, we'll make the right decisions for the business and try to optimize things and sharpen our pencils just as any good leadership teams would.

所以 - 但我們一直以來，看，如果在它的外面有一個有意義的步驟。顯然，那時我們將不得不優化組織，這就是我們所做的。因此，如果看，如果需求再次減弱等等，我們將為業務做出正確的決策，並嘗試優化事物並像任何優秀的領導團隊一樣削尖我們的鉛筆。

And I think a lot is going to depend on what happens with the macro. Does the housing market begin to recover? And again, when you think about the housing market for us, you've really got to look at the luxury housing market, which has taken like a 10-point greater hit than the overall housing market.

而且我認為很大程度上取決於宏會發生什麼。房地產市場開始復甦了嗎？再一次，當你為我們考慮房地產市場時，你真的必須看看豪宅市場，它受到的衝擊比整個房地產市場高出 10 個百分點。

So those are the key things. But you really got to -- the key is, I'd say, it's about the goods. That's what we sell. And if we're right -- we're directionally right with the product and where we're going, we'll see some kind of inflection headwind or no headwind. Is this product transformation, is it worth 5 points, 10 points, 20 points? I don't know, 30 points? Look at our history, when we've done these things.

所以這些是關鍵。但你真的必須——關鍵是，我想說，這是關於商品的。那就是我們賣的。如果我們是對的——我們對產品和我們前進的方向是正確的，我們會看到某種逆風或沒有逆風。這個產品改造，值5分、10分、20分嗎？不知道，30分？看看我們的歷史，當我們做了這些事情。

When we've done these things, we've been a lot more right than wrong. And we've been able to inflect the business. And then you've got to kind of put it in context with just this COVID cycle, the downside of COVID and then compounded with the rising interest rates and the collapse of the luxury housing market and say, when we hit bottom, okay, what does it look like as we come off the bottom?

當我們完成這些事情時，我們的對多於錯。我們已經能夠改變業務。然後你必須把它放在這個 COVID 週期的背景下，COVID 的缺點，然後再加上利率上升和豪宅市場的崩潰，然後說，當我們觸底時，好吧，什麼看起來像我們從底部掉下來嗎？

I mean there's history in cycles, right, everyone can look at. And so we really like where we are. I mean yes, is it a tough time. We have to make a lot of tough decisions and redesign the organization part with some people, we did. And those are tough decisions that you have to make in business. But the key is like what does it all look like on the other side? How are we positioned on the other side? Did we make good long-term decisions?

我是說歷史是有循環的，對吧，大家可以看看。所以我們真的很喜歡我們所在的地方。我的意思是，是的，這是一段艱難的時期嗎？我們必須做出很多艱難的決定，並與一些人一起重新設計組織部分，我們做到了。這些都是您在業務中必須做出的艱難決定。但關鍵是它在另一邊是什麼樣子的？我們在另一邊的位置如何？我們是否做出了良好的長期決策？

We don't have to cycle all the sale e-mails that everybody else does. They have to cycle all those promotions. They have to cycle all those sale e-mails. We don't have to cycle one of them. We have a lower base? We do. Could that mean we have a higher rise off a lower base? You'd think so. That's possible. If we have a massive amount of new product coming, it's revolutionary from anything we've done. So we really like how the horizon looks.

我們不必像其他人那樣循環發送所有銷售電子郵件。他們必須循環所有這些促銷活動。他們必須循環所有這些銷售電子郵件。我們不必循環其中一個。我們基數低？我們的確是。這是否意味著我們在較低的基礎上有更高的增長？你會這麼想。這是可能的。如果我們有大量的新產品問世，那麼它對我們所做的任何事情都是革命性的。所以我們真的很喜歡地平線的樣子。

I wouldn't feel that way if I've been promoting for the last 6 or 12 months or however long everybody -- when it hits back to promotional e-mails but just -- you guys collect e-mails from everybody in our industry. Sure. Just line them all up. You haven't seen a sale e-mail from us in over 2.5 years, close to 3 now. When did you start getting sale e-mails from everybody else?

如果我在過去的 6 個月或 12 個月內一直在宣傳，或者無論大家有多長時間，我都不會有這種感覺 - 當它回到促銷電子郵件時，但只是 - 你們從我們行業的每個人那裡收集電子郵件.當然。把他們都排成一行。您已經有 2.5 年多沒有看到我們發送的銷售電子郵件了，現在接近 3 年了。您什麼時候開始收到其他人的銷售電子郵件？

When are they cycling those? How challenging is that going to be? How many more sale e-mails are they going to go to next? What are they going to do next to drive demand? Yes. So I think that the next 12 to 24 months for RH is going to look very different than the next 12 or 24 months for everybody else in our industry.

他們什麼時候騎自行車？這將具有多大的挑戰性？他們接下來要發送多少封銷售電子郵件？他們接下來要做什麼來推動需求？是的。所以我認為 RH 的未來 12 到 24 個月與我們行業中其他人的未來 12 或 24 個月看起來非常不同。

Yes, no doubt. Can I just ask you a follow-up around the guidance? So you did raise the low end of the sales guidance for the year modestly. Help us with the message there in light of some of the cautious demand comments. Do we just interpret that as confidence and visibility and optimism around new product or the expansion? Just help us frame that a little bit more.

是的，毫無疑問。我可以問你關於指導的後續行動嗎？所以你確實適度提高了今年銷售指導的下限。根據一些謹慎的需求評論，幫助我們在那里傳達信息。我們是否只是將其解釋為對新產品或擴張的信心、知名度和樂觀情緒？請幫助我們進一步構建框架。

Really 2 things. One, what you just said. Our confidence about the new product. All samples got finalized, cost negotiations got finalized. Value equations got finalized. Presentation, how we're presenting in the books, how we're going to present the stores, how we're going to cycle things, what the productivity per square foot of each area of our galleries are going to be, we get out to the retail level. We're replacing this product with this product. What do we think, how did this product perform per week at what margin? How's the new product going to perform per week, at what margin?

真的有兩件事。一，你剛才說的。我們對新產品的信心。所有樣品敲定，成本談判敲定。價值方程式最終確定。演示文稿，我們如何在書中展示，我們將如何展示商店，我們將如何循環使用，畫廊每個區域每平方英尺的生產力是多少，我們出去到零售層面。我們正在用這個產品替換這個產品。我們怎麼看，這個產品每週的表現如何？利潤率是多少？新產品每週的表現如何，利潤率是多少？

And so -- and we try to figure out the arbitrage of every decision we make. And positive or negative. And then what's the aggregate of all those decisions? And we feel more optimistic as we spend more time on looking at what's coming and what's new and how -- what we're going to transition. And then look, it's going to cost us more to cycle through the product. So we're going to have to take deeper markdowns than we thought because of the greater headwinds that have developed. And so that's going to provide a lift.

所以——我們試圖找出我們所做的每一個決定的套利。和積極或消極。那麼所有這些決定的總和是多少？當我們花更多時間研究即將發生的事情、新的事情以及我們將如何轉變的方式時，我們感到更加樂觀。然後看，循環使用產品會花費更多。因此，由於出現了更大的逆風，我們將不得不採取比我們想像的更深的降價措施。所以這將提供一個提升。

So you're going to get some lift from higher -- the greater markdowns. So the low end of the guidance we gave, we think it would be hard. We'd have to have another meaningful economic macro event for us to kind of consider the low end based on what we know today, based on what's happened in the last 7 weeks in the quarter. And what's happened in the last -- since the last quarter we've talked to you, the last 3 months.

所以你會從更高的——更大的降價中得到一些提升。所以我們給出的指導的低端，我們認為這會很難。我們必須有另一個有意義的經濟宏觀事件，讓我們根據我們今天所知道的，根據本季度過去 7 週發生的事情來考慮低端。最後發生了什麼——自上個季度我們與您交談以來，過去 3 個月。

I mean -- so that's how we feel about it now and based on all the data we have. And I think we're calling it kind of straight down the middle. We hope that there's a lot of people who think that we're not at the end of the banking crisis. We're at the beginning of the banking crisis. Very smart people believe, okay, the balance sheet situation is getting corrected, but there's going to be a whole credit issue going forward with regional banks. That could become a big problem. I don't know.

我的意思是——這就是我們現在的感受，也是基於我們擁有的所有數據。而且我認為我們稱之為直接在中間。我們希望有很多人認為我們還沒有結束銀行業危機。我們正處於銀行業危機的開端。非常聰明的人相信，好吧，資產負債表的情況正在得到糾正，但區域銀行將面臨整個信貸問題。這可能會成為一個大問題。我不知道。

Those people are smarter than I am. I've never ran a bank, and I'm not an economist, but I've been in business a long time and I've seen cycles. And what I've seen is that nobody calls it exactly right. And it is -- if you said, what am I most worried about, it just seems a little odd that banks get seized over weekends. And my bank basically gets seized and sold for nothing to JPMorgan. And it's all over now. It's all better. It just seems kind of strange.

那些人比我聰明。我從未經營過銀行，也不是經濟學家，但我從業多年，也見過週期。我所看到的是，沒有人說它完全正確。它是——如果你說，我最擔心的是，銀行在周末被查封似乎有點奇怪。我的銀行基本上被沒收並無償出售給摩根大通。現在一切都結束了。一切都好起來了。這看起來有點奇怪。

Like so everybody thought it was all better back in the other banking crisis and then more banks sell. So I'd say that's -- if you ask me what am I most worry about, I'm most worried about what's next in the world of regional banks, which could have a further impact on a lot of things. Lending to small businesses, the economy, support of innovation, an invention, massive tightening of credit, more banks to get fees, government have to get more involved and just general uneasiness by the consumer.

就像這樣，每個人都認為在另一次銀行業危機中一切都好起來，然後更多的銀行出售。所以我想說的是——如果你問我最擔心的是什麼，我最擔心的是區域銀行世界的下一步，這可能會對很多事情產生進一步的影響。向小企業貸款、經濟、創新支持、發明、大規模信貸收緊、更多銀行收取費用、政府必須更多地參與以及消費者普遍的不安。

But we can take another hit, and I think we'll still be in that range. If there's a big hit, if there's another big macro move, I think things will change for everybody. So we're giving you what we can see. But I don't think there's anybody out there that's completely at ease with the regional banking issue. And if they are, I'd say, well, be careful.

但我們可以再受一次打擊，我認為我們仍會在那個範圍內。如果有大的打擊，如果有另一個宏觀的大動作，我認為每個人的情況都會改變。所以我們給你我們能看到的。但我認為沒有人對區域銀行業問題完全放心。如果是，我會說，好吧，要小心。

I think it's a good time to pray for peace and plan for war. And so that's how we're kind of positioned. We think no matter -- again, no matter what the macro looks like even if there is a bigger banking crisis, our new product will create some level of inflection that I'm sure of.

我認為現在是祈禱和平和計劃戰爭的好時機。這就是我們的定位方式。我們認為無論如何——再說一次，無論宏觀看起來如何，即使存在更大的銀行業危機，我們的新產品也會產生一定程度的變化，我確信這一點。

Your next question comes from Jonathan Matuszewski with Jefferies.

你的下一個問題來自 Jefferies 的 Jonathan Matuszewski。

Gary, I wanted to follow up on your comments regarding the most discerning households being 10x more valuable in terms of luxury home furnishings. Is there any color you could share on spending patterns across your income cohorts? Are there certain customer segments that are behaving differently lately versus others in the RH business?

加里，我想跟進你關於最挑剔的家庭在豪華家具方面的價值高出 10 倍的評論。對於您的收入群體的支出模式，您有什麼可以分享的顏色嗎？在 RH 業務中，是否有某些客戶群最近的行為與其他客戶群不同？

Asking just because the reference to giving away low-quality market share. So curious what percentage of your members you would consider to be maybe low quality and what that could imply for maybe what the membership trial looks like long term.

詢問只是因為提到放棄低質量的市場份額。很好奇，您認為您的會員中有多少可能是低質量的，以及這可能意味著什麼可能意味著會員試用的長期情況。

Yes, I think if you just study the wealth data in studying the ultra-high net worth people and you look at homeownership and people as they go up the economic ladder, they collect more homes. The home becomes the biggest source of investment. You keep buying a better home, you generally keep buying a bigger home unless you're in a downsizing mode but -- and then people buy multiple homes. They buy a second home, then they buy a third home. Ultra-high net worth people have 3 to 5 homes.

是的，我認為如果你只研究研究超高淨值人群的財富數據，看看房屋所有權和人們在經濟階梯上的上升，他們會擁有更多的房屋。房子成為最大的投資來源。你一直在買一個更好的房子，你通常會繼續買一個更大的房子，除非你處於縮小規模的模式，但是——然後人們會買多套房子。他們買了第二套房子，然後又買了第三套房子。超高淨值人士擁有3至5套房子。

And not only those -- the data would tell you that at the high end, the wealth, the second home, on average, has twice as many furniture -- twice as many bedrooms as the primary residence. And as people build up the economic cycle, those second homes are furnished beautifully because they're trying to impress their guests and they're trying to create a hotel experience.

不僅如此——數據會告訴你，在高端、富裕的人群中，第二套房子的家具數量平均是第一套房子的兩倍——臥室的數量是第一套房子的兩倍。隨著人們建立起經濟周期，那些第二居所被佈置得很漂亮，因為他們試圖給客人留下深刻印象，並且他們正在努力創造一種酒店體驗。

So you're not going into second homes that have like a bed frame pushed against the wall with the cheap headboard and some crappy sheets. And look, you can go on Zillow or Redfin and just look at homes, right? Go to second home market and what's on the market. Your first, second home, maybe not spending that much on it, maybe stretch for the second home. But again, when you go up the economic ladder, people spend exponentially more on the home. That is where the money goes.

因此，您不會住進第二套房子，那裡的床架像靠在牆上的廉價床頭板和一些蹩腳的床單。看，你可以去 Zillow 或 Redfin 看看房子，對吧？去第二故鄉市場看看市場上有什麼。你的第一個、第二個家，也許不會花那麼多錢，也許會為第二個家而努力。但同樣，當你走上經濟階梯時，人們在家裡的花費會成倍增加。這就是錢的去向。

And it goes into more real estate you have more rooms to furnish. You're now furnishing with better and more expensive furniture because that's how people are defining themselves, defining their success and their place in the world. I'd like to say, then they go beyond that, if you kind of get silly rich, you buy a plane. And if you get stupid rich, you buy a yacht. And that's where we have our planes that are also available for charter.

它進入更多的房地產，你有更多的房間要佈置。你現在正在佈置更好、更貴的家具，因為這是人們定義自己、定義他們的成功和他們在世界上的地位的方式。我想說的是，他們不止於此，如果你有點發財，你會買一架飛機。如果你變得愚蠢有錢，你就會買一艘遊艇。這就是我們的飛機也可以包機的地方。

And we've got our RH1 and RH2 and RH3 because we're trying to communicate to those consumers. And if we can get them, and we have some of them. I mean we -- one of our big projects, you know the one I'm talking about, I can't say the name, but how many bedrooms? 30, 28?

我們擁有 RH1、RH2 和 RH3，因為我們正試圖與這些消費者進行溝通。如果我們能得到它們，我們就會有一些。我的意思是我們——我們的大項目之一，你知道我說的那個，我不能說出名字，但是有多少間臥室？ 30、28？

In that range.

在那個範圍內。

It's 28 to 30 bedroom, a second home. We're doing the entire project. I mean we do -- we have some of those clients. We're earning that respect. Our guest house is being visited by the very top of the economic pyramid. It is being talked about at the very highest end. It's a very, very top of that ladder. People are aware of our guest house and visiting same, touring, asking for tours, so on and so forth.

這是 28 到 30 間臥室，第二個家。我們正在做整個項目。我的意思是我們有——我們有一些這樣的客戶。我們正在贏得這種尊重。經濟金字塔的最頂端正在訪問我們的賓館。最高層正在談論它。這是那個階梯的非常非常高的一個。人們知道我們的賓館並參觀、旅遊、要求參觀等等。

And we're demonstrating what we're capable of. And we're beginning to speak to those consumers. What people will see at RH England, it's another -- entirely another level for our brand. We're going to speak to people in a way that they've never been spoken to.

我們正在展示我們的能力。我們開始與這些消費者交談。人們將在 RH England 看到的是另一個——我們品牌的另一個層次。我們將以前所未有的方式與人們交談。

And by the way, RH England, now every investor and analyst on this call is going to want to come to the opening. RH England is going to have all the newness, almost all of it. It's -- if you want to see the new product for the first time, go to RH England. It's being flown there. It's being framed in through windows, but that will be the first view. So we're introducing the brand in an entirely new way with entire new assortment. We have some of the legacy product, we do. Some of the key items, best sellers, best collection, but it's like what percent is new? 70% of that gallery is new.

順便說一句，RH England，現在參加這次電話會議的每一位投資者和分析師都希望參加開幕式。 RH England 將擁有所有新鮮事物，幾乎所有新鮮事物。它是——如果您想第一次看到新產品，請去 RH England。它正在飛到那裡。它是通過窗戶框起來的，但這將是第一個視圖。因此，我們以全新的方式介紹該品牌，提供全新的品類。我們有一些遺留產品，我們有。一些關鍵項目，暢銷書，最佳收藏品，但新品的百分比是多少？該畫廊的 70% 是新的。

And how many rooms do we have, over 60 rooms, furnished rooms.

我們有多少房間，60 多個房間，帶家具的房間。

Yes.

是的。

You want to see the new -- you want to get a head start when everybody else come to the opening party. But yes, I say the lower quality, you're always -- we've been shedding customers for the 23 years I've been here. Like we're building a luxury brand. That's just going to happen. It's just going to happen. But if you do it right, you're going to have a positive arbitrage, which we've always had. And that I think you're going to -- we're going to have it again. So I think this move is going to create another positive arbitrage.

你想看到新的——你想在其他人都來參加開幕式時搶先一步。但是，是的，我說的是質量較低，你總是——我在這裡的 23 年裡，我們一直在流失客戶。就像我們正在打造一個奢侈品牌。那會發生的。它即將發生。但如果你做對了，你就會有一個積極的套利，我們一直都有。而且我認為你會 - 我們將再次擁有它。所以我認為此舉將創造另一個積極的套利。

I think people are going to look at the design and quality of the goods at the highest end and they're going to go, "Oh my God, this is incredible." And they're going to look at the price and things like, "This is such an incredible value, do my whole house." I mean just another -- I can't say names, person's house they just -- they did 100% RH contemporary.

我認為人們會在最高端審視商品的設計和質量，然後他們會說，“天哪，這太不可思議了。”他們會看價格和類似的東西，“這真是一個令人難以置信的價值，做我的整個房子。”我的意思是另一個——我不能說名字，他們只是人的房子——他們做了 100% RH 當代。

And the conversation is starting to really happen at that next level, but you've got to stay with it. You've got to keep investing. These things like the places we build, whether it's the galleries in RH San Francisco, our most recent one or a Guesthouse, which our restaurant and our Guesthouse just was -- just made the MICHELIN guide. Tell me another retailer in the world that has restaurants, that has a restaurant listed in the MICHELIN guide. We didn't get a star, but we have MICHELIN guide.

對話開始真正發生在下一個層次，但你必須堅持下去。你必須繼續投資。這些東西就像我們建造的地方，無論是 RH San Francisco 的畫廊，我們最近的畫廊還是賓館，我們的餐廳和賓館剛剛成為 - 剛剛成為米其林指南。告訴我世界上另一家有餐廳的零售商，他們有一家餐廳被列入米其林指南。我們沒有得到一顆星，但我們有米其林指南。

We had one of the best chefs, arguably the best chef in the entire world, eat at our restaurant 2 nights in a row and said they could dine there 2 or 3 times a week, and thought the food was outstanding. Gave us some feedback. You expect the best chef in the world to give a feedback on what might be better, a little bit more salt here, this, that, but for the most part, a glowing review.

我們有最好的廚師之一，可以說是全世界最好的廚師，連續 2 晚在我們的餐廳用餐，並說他們每周可以在那裡用餐 2 或 3 次，並認為食物很棒。給了我們一些反饋。您期望世界上最好的廚師就什麼可能更好，這裡加一點鹽，這個，那個，但在大多數情況下，給出一個熱烈的評論。

And so again, this -- all those things, all those conversations with people at the top of the mountain, starts to change the conversation, the perception, the image, the respect of a brand. And it takes a long time to earn it. And we're working on earning that respect, getting the tip of the hat. And if we do it well, we will have higher quality, higher value, more discerning consumers to just spend multiples, of consumers that are just a click or 2 down from them. A lot more, not a little more because they have a lot more money.

再一次，這——所有這些事情，所有那些與山頂上的人的對話，開始改變對話、感知、形象和對品牌的尊重。而且要花很長時間才能賺到。我們正在努力贏得這種尊重，獲得榮譽。如果我們做得好，我們將擁有更高質量、更高價值、更挑剔的消費者，他們只需點擊一兩下就可以多花錢。更多，而不是更多，因為他們有更多的錢。

And I would argue, if you look at it, the baby boom generation is -- look, studies are saying, yes, if you're at the high end and you have access to health and health care and you take care of yourself, as I was saying, the average age is like 87 life span now., right? That's up from 77 for lower economic demographics. And so what are people going to do as they're living longer, I don't know if they're going to save money. I think you're going to spend money.

我會爭辯說，如果你看一下，嬰兒潮一代是——看，研究表明，是的，如果你處於高端並且你可以獲得健康和醫療保健並且你會照顧好自己，就像我說的，現在的平均壽命大約是 87 歲，對吧？對於較低的經濟人口統計數據，這一數字高於 77。那麼，隨著人們壽命的延長，他們會做什麼，我不知道他們是否會存錢。我想你會花錢。

Someone really said something to be that's like, "Oh, did you fly private to get here?" And I said, yes, and they said, "Well, good, because if you don't, your kids sure will." I thought that was a really funny comment.

有人真的說過這樣的話，“哦，你是坐私人飛機來這裡的嗎？”我說，是的，他們說，“好吧，很好，因為如果你不這樣做，你的孩子肯定會的。”我認為這是一個非常有趣的評論。

It's like, I mean, people that I think -- baby boomers, they're living longer. It's the biggest pot of well. There's going to be the biggest wealth transfer, but I think there's likelihood we're going to see an acceleration of spending. People are going to say, "I don't have that much longer to live." And I think they're going to loosen their pocketbooks. So I like all these kind of sub things underneath this main trend, I like coming out the other side.

這就像，我的意思是，我認為的人——嬰兒潮一代，他們的壽命更長。這是最大的一口井。這將是最大的財富轉移，但我認為我們很可能會看到支出加速。人們會說，“我活不了那麼久了。”而且我認為他們會放鬆錢包。所以我喜歡這種主流趨勢下的所有這些次要事物，我喜歡從另一邊走出來。

I'd like where we're positioned for the next 5 to 10 years. I think we get through the cycle here over the next, I don't know, 6 to 12 months. I don't see it lasting much longer than that. I think '24 is going to look a lot better than '23. And I think if we get inflation under control.

我想知道我們在未來 5 到 10 年的定位。我想我們會在接下來的 6 到 12 個月內完成這個週期，我不知道。我不認為它會持續更長的時間。我認為 24 年會比 23 年好看很多。而且我認為如果我們控制通貨膨脹。

And whatever happens in the banking thing. Like you got to kind of let it happen. Again, I wish they just say they guaranteed all the deposits or something, so they just stop everything. But we still do have credit reckoning that's got to come through. I mean there's no way those banks lend like they were lending, right? So that's going to have some effect on the economy. But nonetheless, no matter what happens, the path we're on, I think, is a path to a really profitable model and a really enduring and lasting brand.

無論銀行業發生什麼。就像你必須讓它發生一樣。再一次，我希望他們只是說他們保證所有存款或其他東西，所以他們就停止一切。但我們仍然需要進行信用清算。我的意思是，那些銀行不可能像放貸那樣放貸，對吧？所以這會對經濟產生一些影響。但儘管如此，無論發生什麼，我認為我們所走的道路是通往真正盈利模式和真正持久品牌的道路。

Really appreciate all that color, Gary. And just a quick follow-up. You had some helpful comments on the domestic competitive landscape before in terms of peers who are below you being more promotional. From our check, we're seeing some more luxury brands and home furnishings out of Italy increasingly eyeing the U.S. after years of chasing growth in China and India and Brazil. Some of these brands are pursuing more sizable showrooms in key U.S. markets. Do you see this as a threat? And any thoughts there would be great.

真的很欣賞所有這些顏色，加里。并快速跟進。你之前對國內競爭格局發表了一些有益的評論，說比你低的同行更有升職空間。從我們的檢查中，我們看到更多來自意大利的奢侈品牌和家居用品在中國、印度和巴西追求增長多年後越來越關注美國。其中一些品牌正在美國主要市場尋求規模更大的陳列室。你認為這是一種威脅嗎？任何想法都會很棒。

Yes. I mean look, everything is a threat. So we don't take anybody for granted. But I'd just say that our value proposition versus those brands is massive. And they also -- most of those Italian brands are 2 things. One, they're just mostly category focused. They either are upholstery brand selling sofa, sectionals, chairs. They're a lighting brand or they're a category-specific brand. There's not one that's integrated all the categories like we do and have a complete lifestyle point of view and can furnish and design a home.

是的。我的意思是看，一切都是威脅。所以我們不認為任何人都是理所當然的。但我只想說，與這些品牌相比，我們的價值主張是巨大的。他們也是——大多數意大利品牌都是兩件事。第一，他們主要關注類別。他們要么是銷售沙發、組合沙發、椅子的室內裝潢品牌。他們是一個照明品牌，或者他們是一個特定類別的品牌。沒有一家像我們這樣整合了所有類別，擁有完整的生活方式觀點，可以佈置和設計一個家。

And they don't have the size or scale to have our value creation, our value proposition. Our value versus the brands that -- the ones I think you're talking about, I think we're massively disruptive to those brands and especially now that we're sourcing out of Italy ourselves.

他們沒有規模或規模來創造我們的價值，我們的價值主張。我們的價值與那些我認為你正在談論的品牌相比，我認為我們對這些品牌產生了巨大的破壞，尤其是現在我們自己從意大利採購。

So when you've got Made in Italy versus Made in Italy and you have a significantly better value proposition because of size of your platform. And the one other thing I mentioned is they don't control their distribution. Some of the brands you're probably talking about the most famous one, I think, has 800 points of distribution in the U.S. And they control, I think, 4 points of those 800 points of distribution.

因此，當您將意大利製造與意大利製造進行比較時，由於平台的規模，您的價值主張要好得多。我提到的另一件事是他們不控制他們的分發。我認為，您可能正在談論的一些品牌最著名的品牌在美國擁有 800 個分銷點，我認為他們控制著這 800 個分銷點中的 4 個。

And so there's a whole kind of convoluted platform. And pricing discrepancy. They don't really get to control price. They've got a lot of dealers representing them. And so it takes them a long time to kind of build what we've built -- but nonetheless, look, they're great brands. They've built great product. I like our positioning way better than theirs, way better.

所以有一整套複雜的平台。和定價差異。他們並沒有真正控制價格。他們有很多經銷商代表他們。因此，他們花了很長時間來構建我們已經構建的東西——但是，看，他們是偉大的品牌。他們打造了很棒的產品。我比他們更喜歡我們的定位方式，更好。

Your next question comes from Brad Thomas with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Brad Thomas。

Follow-up on England. I was wondering, Gary, if you could just give us a little bit of an update on how you're going to be dealing with the supply chain and logistics. Obviously, the furniture industry is going to be a challenging one from a logistics standpoint. How do you ensure that the customer has a great experience for you, especially these early customers that you get in the months ahead here?

英格蘭的後續行動。加里，我想知道你能否向我們介紹一下你將如何處理供應鍊和物流的最新情況。顯然，從物流的角度來看，家具行業將是一個具有挑戰性的行業。您如何確保客戶為您提供良好的體驗，尤其是您在未來幾個月內獲得的這些早期客戶？

And then I was wondering, Jack, if you can give us any color on how you're thinking about the financial impact from England in the second half, particularly from a top line perspective. What's baked into the guidance? Any color there would be great.

然後我想知道，傑克，你是否可以告訴我們你如何看待下半年英格蘭的財務影響，特別是從頂線的角度來看。指南包含什麼內容？任何顏色都會很棒。

Yes. Let me start with the supply chain. We feel really confident. I mean we've had our team boots on the ground over there for 18 years -- 18 months to 2 years. I mean working, training. But we feel highly confident in the supply chain experience, delivery experience that our consumers are going to receive from RH. And then one of the keys is just making sure we figure out how to be efficient on the reverse logistics.

是的。讓我從供應鏈開始。我們感到非常有信心。我的意思是，我們的團隊靴子在那裡已經有 18 年了——18 個月到 2 年。我的意思是工作，培訓。但我們對我們的消費者將從 RH 獲得的供應鏈體驗和交付體驗充滿信心。然後其中一個關鍵就是確保我們弄清楚如何在逆向物流中提高效率。

You're always going to have some level of returns in any business, and how we handle that, the ability to not have too many touches and liquidate efficiency -- efficiently through an outlet network and so on and so forth, all those things that we're working on. There'll be some things to learn where the demand going to all come across the U.K. Some things to work out, but I feel highly confident. We've got a great team. We've got a lot of people that have been with us for years that are all over there. I don't know if you want to.

在任何業務中，您總是會獲得一定程度的回報，以及我們如何處理這一點，沒有太多接觸和清算效率的能力——通過銷售網絡有效地等等等等，所有這些事情我們正在努力。有一些事情需要了解英國各地的需求。有些事情需要解決，但我感到非常有信心。我們有一支很棒的團隊。我們有很多人多年來一直和我們在一起，他們都在那裡。我不知道你是否願意。

Yes. In our England gallery, we're going to have 8 folks on the gallery side and another 5 for hospitality that are from RH in the U.S.

是的。在我們的英格蘭畫廊中，我們將有 8 名畫廊人員和另外 5 名來自美國 RH 的招待人員。

And then from a supply chain?

然後從供應鏈？

And from a supply chain perspective, we have one of our best guys over there now.

從供應鏈的角度來看，我們現在有我們最好的人之一。

Thanks, Eri. And so we feel highly confident that in every level that we will execute well. But there's going to be things for us to learn. Like we don't know exactly where the demand is going to come from. We don't know exactly -- we have to just acclimate everybody to our brand, our services and everything that we offer. And so we'll see how the ramp is.

謝謝，埃里。因此，我們非常有信心在每個層面上都能很好地執行。但是我們會學到一些東西。就像我們不知道需求的確切來源一樣。我們並不清楚——我們必須讓每個人都適應我們的品牌、我們的服務和我們提供的一切。因此，我們將看看坡道如何。

I'll tell you one thing. The response to the party invite has been incredible. We thought we were going to have x number of people. And now just after a few days, we think we might have 2x number of people coming. So if anybody is on this call and you want to come, like let us know quickly. We're really worried like that's a countryside and we're doing this party, sending e-mail invite, how many people are going to come. And it looks like everybody is coming. So as long as they're in town, it looks like everybody's coming, so.

我會告訴你一件事。對派對邀請的回應令人難以置信。我們以為我們會有 x 人。現在僅僅過了幾天，我們認為我們可能會有 2 倍的人來。因此，如果有人正在接聽這個電話並且您想參加，請盡快告訴我們。我們真的很擔心那是農村，我們正在舉辦這個派對，發送電子郵件邀請，有多少人會來。看起來每個人都來了。所以只要他們在城裡，看起來每個人都會來，所以。

On the second question, we haven't said, Brad. So it's modest. And I think we'll all learn together at one time, Gary had projected that first year sales or demand of England could be 50 to 250. The point is there, we'll earn together. We'll share data when we have it, but it's a modest amount. It's not worth highlighting it in our guidance.

關於第二個問題，Brad，我們還沒有說。所以很低調。而且我認為我們會一起學習，加里曾預測英格蘭第一年的銷售額或需求可能是 50 到 250。重點是，我們會一起賺錢。我們會在擁有數據時共享數據，但數量不多。在我們的指南中不值得強調它。

Your next question comes from Brian Nagel with Oppenheimer.

你的下一個問題來自奧本海默的 Brian Nagel。

So I know the call is running long. So I'll keep it to one question. But the question I have, I guess for Gary, we talked obviously a lot going on internally with RH and a lot of the really interesting initiatives you have. If you look at the macro environment, and there's been a lot of talk about kind of the macro environment headwind. You know your customers, your new customer. What is -- to get at this malaise to a lot of backward why would you become a tailwind versus the headwind is currently, what needs to change most? I mean what are the key factors there?

所以我知道通話時間很長。所以我會保留一個問題。但我的問題是，我想對於加里來說，我們顯然在 RH 內部討論了很多事情，以及你們擁有的許多非常有趣的舉措。如果你看看宏觀環境，就會有很多關於宏觀環境逆風的討論。你了解你的客戶，你的新客戶。什麼是——要解決這種落後的問題，為什麼你會成為順風而不是逆風，最需要改變的是什麼？我的意思是那裡的關鍵因素是什麼？

I don't know if I got that quite right. Your connection wasn't the greatest. Maybe just kind of repeat the question, just make sure we get it right.

我不知道我說得對不對。你的聯繫不是最好的。也許只是重複這個問題，只要確保我們做對了。

Yes, I apologize. So just from a macro standpoint, as you think about your customer and the headwinds, the macro headwinds, to get out of this malaise what needs to change? What do you think is most important from a macro standpoint to really start to change or to drive -- for your customer?

是的，我道歉。所以從宏觀的角度來看，當你考慮你的客戶和逆風時，宏觀逆風，要擺脫這種不適需要改變什麼？從宏觀的角度來看，您認為真正開始改變或推動您的客戶最重要的是什麼？

Yes. I think we just got to find out where the bottom is. Things just have to stabilize somewhere. Interest rates stabilize somewhere, mortgage rates stabilize somewhere and just get through a cycle. So we're -- what's the new baseline? I think that's the key. And then generally, once you -- you've kind of hit whatever bottom is and there's a new baseline and we've got the macro headwinds get stabilized. And history would tell us you start to grow off that new base.

是的。我想我們只需要找出底部在哪裡。事情必須在某個地方穩定下來。利率在某個地方穩定下來，抵押貸款利率在某個地方穩定下來，然後經歷一個週期。所以我們 - 新的基準是什麼？我認為這是關鍵。然後一般來說，一旦你 - 你已經觸及任何底部並且有一個新的基線並且我們已經讓宏觀逆風得到穩定。歷史會告訴我們，你開始在那個新的基礎上成長。

And so I think the key is what's the base. The base luxury housing down 50. Because it hits down 45 last quarter. And that means if you look at the sequential kind of from quarter-to-quarter, that would tell you it went from 38 to down 45, probably means the last month of that quarter was down 50 or 54. I don't know, somewhere around there, like I've never seen this kind of stuff.

所以我認為關鍵是基礎是什麼。基本豪華住宅下降了 50。因為它上個季度下降了 45。這意味著如果你看一下季度到季度的連續類型，那會告訴你它從 38 下降到 45，可能意味著該季度的最後一個月下降了 50 或 54。我不知道，在附近的某個地方，就像我從未見過這種東西一樣。

But then again, two, I've never -- like it's first time we're navigating the brand through a cycle like this, where we've been positioned so high in the market, so. And also, what I'd say what's different about us today is we've eliminated -- we're not really in the accessory business in a meaningful way. We're not in the tabletop business. We're not in the holiday business. We're not selling anything for Easter or Mother's Day or Christmas or anything, right, go in and see all the Christmas decoration stuff, stocking stuffers anymore.

但是話又說回來，兩個，我從來沒有——就像這是我們第一次通過這樣的周期來引導品牌，我們在市場上的定位如此之高，所以。而且，我要說的是，我們今天的不同之處在於我們已經淘汰了——我們並沒有真正以有意義的方式從事配件業務。我們不從事桌面業務。我們不從事假日業務。我們不會在復活節、母親節或聖誕節或任何時候出售任何東西，對，進去看看所有的聖誕裝飾品，聖誕禮物。

When we had -- when the company had a bigger mix of accessories and stuff like that, you're not going to get hit as hard. But today, we're basically all heights of it. We're really furniture-focused between indoor and outdoor furniture. It's the lion's share of our business. And then you've got rugs and lighting and bedding and bath house and things like that. But we're not -- we're really a furniture-focused business today.

當我們 - 當公司有更多的配件和類似的東西時，你不會受到那麼大的打擊。但是今天，我們基本上都達到了頂峰。我們真正專注於室內和室外家具之間的家具。這是我們業務的最大份額。然後你就有了地毯、燈飾、床上用品和浴室之類的東西。但我們不是——我們今天真的是一家以家具為中心的企業。

So we're going to swing a little farther than other people during these times. But really, the key is what's the baseline. What's the new baseline? Are we done with the tightening cycle? Are we done? I don't know. The markets are saying they're betting there's not another raise. And then there's -- you've got some Fed people saying there might be another raise.

所以在這段時間裡，我們會比其他人走得更遠一點。但實際上，關鍵是什麼是基線。新的底線是什麼？我們完成了緊縮週期嗎？我們完了嗎？我不知道。市場表示他們押注不會再次加薪。然後是 - 一些美聯儲人士表示可能會再次加息。

And all of a sudden interest rates on 30-year mortgages hit 7%. Then it went back to 6.2%. Now I said they're back to 7%. Like why? Like what's that telling you in the 10-year? They believe interest rates are going up. But I think it's just got to kind of go, okay. Have we hit the bottom from a housing point of view, specifically luxury housing on this cycle is -- are we done with the regional banking issues, is inflation tamed? And are people willing to buy?

突然之間，30 年期抵押貸款的利率達到了 7%。然後又回到6.2%。現在我說他們回到了 7%。比如為什麼？就像這在 10 年裡告訴你的一樣？他們認為利率正在上升。但我認為它只是有點走，好吧。從房地產的角度來看，我們是否已經觸底，特別是在這個週期中的豪華住宅——我們是否已經解決了區域銀行業問題，通脹是否得到控制？人們願意購買嗎？

I mean it's -- people aren't putting houses on the market because they can't afford to trade up. And so you just don't have a lot of inventory to buy. And look, that's better for the new housing market. 90% of the market is the resell market, 10% is the new housing market. The only -- they only have inventory to sell. So they're putting it all on the things.

我的意思是——人們不會將房屋投放市場，因為他們負擔不起升級交易。因此，您只是沒有太多庫存可購買。看，這對新的住房市場來說更好。 90%的市場是轉售市場，10%是新房市場。唯一的 - 他們只有庫存可以出售。所以他們把一切都放在了事情上。

So it's going to be a tailwind. There's going to be some level of tailwind to new homes because they have inventory. Resellers don't have inventory because the owners don't want to sell into this market. And so once everything gets stabilized, like if interest rates stabilize at the bed, it kind of says we're done for now.

所以這將是順風。新房會有一定程度的順風，因為它們有庫存。經銷商沒有庫存，因為所有者不想在這個市場上銷售。因此，一旦一切都穩定下來，就像利率穩定在床邊一樣，就好像我們現在已經完成了。

We've got inflation under control and interest rates stabilize, federal funds rate stabilizes at 5 or whatever number. And then interest rates can stabilize. And once you cycle that and you're through that cycle for a year, you've got a baseline. And then things start to look better, and they start to loosen. That will obviously help.

我們已經控制了通貨膨脹，利率穩定，聯邦基金利率穩定在 5 或任何數字。然後利率可以穩定下來。一旦你開始循環並且你經歷了一年的循環，你就有了一個基線。然後事情開始好轉，他們開始放鬆。這顯然會有幫助。

But you still have other things there -- some people are worried. You've got the commercial real estate market. I mean you don't want to be in the office building business right now. I feel that for my friends that own office building. So this is like this thing -- that's not over yet, right? And so that's going to have a wealth effect. There's people out there that invested in funds that own commercial real estate and people that own buildings, things like that.

但是那裡還有其他事情——有些人很擔心。你有商業房地產市場。我的意思是你現在不想從事辦公樓業務。我覺得對於那些擁有寫字樓的朋友來說。所以這就像這件事——還沒有結束，對吧？所以這會產生財富效應。有些人投資於擁有商業地產的基金，有些人則擁有建築物，諸如此類。

I mean people are already starting to give keys back to the banks on commercial real estate offices. Because there's people don't want to go back to those companies. They're working from home and there's people don't want to go back to work and strikes at Apple and Microsoft, that's kind of crazy, right? But what's going to happen with commercial real estate? There are some things that still have to be kind of worked out.

我的意思是人們已經開始將商業房地產辦公室的鑰匙還給銀行。因為有些人不想回到那些公司。他們在家工作，有人不想回到蘋果和微軟工作並罷工，這有點瘋狂，對吧？但是商業地產會發生什麼？有些事情仍然需要解決。

And I'd tell you the luxury customer is the most aware of the issues. They have the broadest view of economic challenges and where things are going and interest rates and all that kind of stuff. And when they're going to start buying the houses again, when they're going to decide to start selling their houses, that will create activity. And I think once everything stabilizes, people kind of go, "Okay, this is the new reality. Let's go back to normal."

我會告訴你奢侈品客戶是最了解這些問題的。他們對經濟挑戰、事情的發展方向、利率和所有類似的東西有著最廣泛的看法。當他們再次開始購買房屋時，當他們決定開始出售房屋時，就會產生活動。我認為一旦一切穩定下來，人們就會說，“好吧，這是新的現實。讓我們回到正常狀態吧。”

Your next question comes from Max Rakhlenko with Cowen.

你的下一個問題來自 Max Rakhlenko 和 Cowen。

I'll just keep it to one. But how are you thinking about pricing products in Europe compared to the States, and just your latest view on how profitable those galleries could be a maturity? I think you previously thought once galleries made sure they could potentially have higher margins than in the States. So just curious for an update there. And then just any differences in cost structures that we should keep in mind?

我只保留一個。但是，與美國相比，您如何看待歐洲的產品定價，以及您對這些畫廊的盈利能力如何成熟的最新看法？我想你以前認為一旦畫廊確定他們可能有比美國更高的利潤。所以只是好奇那裡的更新。那麼我們應該牢記的成本結構差異是什麼？

Yes. We believe that we're -- it's a lot of debate on pricing. We're going to ride up to the wire. You do the math on everything and make sure we understand it. But I believe that, long term, we could have an accretive strategy because I think we're also building everything kind of on a clean sheet of paper. So it should be the most efficient from a supply chain point of view. There should be efficiencies and things just because it's all going to be new thinking and our best thinking.

是的。我們相信我們 - 這是關於定價的很多爭論。我們要趕上電線。你對所有事情進行數學計算，並確保我們理解它。但我相信，從長遠來看，我們可以製定一個增值戰略，因為我認為我們也在把一切都建立在一張乾淨的紙上。所以從供應鏈的角度來看，它應該是最有效的。應該有效率和事情，因為這一切都將是新的想法和我們最好的想法。

And we'll learn a lot in the beginning here. So I'd just say, look, every plan we have, generally, is some degree of wrong. Are we more right than wrong? That's the key. Are we strategically right. So we're going to be wrong on a lot of things at launch, whether it's pricing or this is -- and the point is, are we strategically right? Because we'll improvise, adapt, overcome, modify and as we get going.

我們將從這裡開始學到很多東西。所以我只想說，看，我們的每一個計劃，一般來說，都存在一定程度的錯誤。我們是對還是錯？這就是關鍵。我們在戰略上是正確的嗎？所以我們在發佈時會在很多事情上出錯，無論是定價還是 - 關鍵是，我們在戰略上是正確的嗎？因為我們會即興創作、適應、克服、修改以及我們前進的過程。

So we're excited to just get going and start learning. So like -- but look, there's the base like right now, where should we price this or should price that? Who are our competitors over there and what does it look like? And so more to learn. I'd say directionally I feel exactly the same way. But we're not in the game yet. So ask us in 6 months, we'll have a much better view.

所以我們很高興能夠開始學習。就像——但是看，現在有這樣的基礎，我們應該在哪裡定價，或者應該在哪裡定價？誰是我們那邊的競爭對手，他們長什麼樣？還有更多需要學習的東西。我會說方向性的我感覺完全一樣。但我們還沒有進入遊戲。所以在 6 個月後問我們，我們會有更好的看法。

Your next question comes from Seth Basham with Wedbush.

你的下一個問題來自 Seth Basham 和 Wedbush。

My question is around inventories. As you take these markdowns to clear excess inventories, do you expect your inventory to be clean by the end of the fiscal year?

我的問題是關於庫存的。當您採取這些降價措施來清理過剩庫存時，您是否希望您的庫存在本財政年度結束時清理乾淨？

Yes. I think we'll have everything in line by the end of the year.

是的。我認為我們將在今年年底之前完成所有工作。

Great. And then similarly, with the 70 new collections you're planning for this year, do you expect to be in stock in meaningful quantities so that they can be additive, materially added to sales this year?

偉大的。然後類似地，對於您今年計劃推出的 70 個新系列，您是否希望存貨數量有意義，以便它們可以添加，實質性地增加今年的銷售額？

We do believe that, yes. Yes. I think we'll be in really good shape by mid-second half. There's always, with the ramp-up of this much newness, different timings, different things as they go into production and some delays here or there, and as they're going through final finishing and getting into ramp up, moving from sampling to production.

我們確實相信，是的。是的。我認為到下半場中期我們的狀態會非常好。隨著這麼多新事物的增加，不同的時間，不同的東西進入生產，這里或那裡有一些延遲，當他們經歷最後的整理和進入增加，從採樣到生產時，總是有.

But we'll be -- kind of some things will be in stock end of second quarter, some beginning of third quarter, some mid-third quarter. I'd say mid-third quarter. Yes, late third quarter will be really good, late third quarter, as far as shipping. And again, think about our business, our business will generate demand even if we're not really in stock because people are working on projects, so. But I think we'll be able to understand what the inflection point potentially can look like, I think, by late third quarter.

但我們會——有些東西會在第二季度末、第三季度初、第三季度中期有庫存。我會說第三季度中期。是的，就出貨而言，第三季度末會非常好，第三季度末。再想想我們的業務，即使我們沒有真正的庫存，我們的業務也會產生需求，因為人們正在做項目，所以。但我認為，到第三季度末，我們將能夠了解拐點可能是什麼樣子。

And we'll be -- we'll have a lot more data and information and see where the consumer is really responding and what that looks like. And for us, look, we've got to place certain bets on. We've got to buy goods long term because uncertainty, that's our job, right, is to know what's going to be great. And again, we never buy anything 100% right, ever in my entire career.

而且我們將 - 我們將擁有更多的數據和信息，並了解消費者真正響應的地方以及它的樣子。對於我們來說，看，我們必須下一定的賭注。我們必須長期購買商品，因為不確定性是我們的工作，對，就是知道什麼會變得更好。再說一遍，在我的整個職業生涯中，我們從來沒有買過 100% 正確的東西。

The point is are we directionally right on the investments, on the buys and some of these things are going to be really big, right? So we've got to make big bets. We've got to buy inventory kind of out there because furniture can't scale. You just can't ramp up furniture production fast, not at these quality levels. So we'll learn a lot and we'll cycle through. But that's why we're really, really excited about '24 because we'll have some really good data by the end of the third quarter. And we'll be making a lot of -- much better decisions as we look out.

關鍵是我們在投資、購買方面的方向是否正確，其中一些事情會非常大，對吧？所以我們必須下大賭注。我們必須在那裡購買存貨，因為家具無法擴展。你只是不能快速提高家具產量，不能達到這些質量水平。所以我們會學到很多東西，然後循環往復。但這就是為什麼我們對 24 年真的非常非常興奮，因為我們將在第三季度末獲得一些非常好的數據。我們會做出很多——我們會做出更好的決定。

And then we have another layer of newness that is going to come as we cycle into the spring. A lot of newness coming through either late this year, some of it might come or we'll hold it for next spring, depending on what the responses are. But so, yes, fingers crossed.

然後，隨著我們進入春天，我們將迎來另一層新鮮事物。今年晚些時候會出現很多新鮮事物，其中一些可能會出現，或者我們會在明年春天舉行，這取決於反應是什麼。但是，是的，祈禱吧。

That's really helpful. My last question is just on your pricing strategy and architecture. As you move up to the very high end, you bump up against pricing from timeless designers. Do you see that being a challenge to convert high net-worth customers to shop RH when they could buy the true designer piece?

這真的很有幫助。我的最後一個問題只是關於你們的定價策略和架構。當您向高端移動時，您會遇到來自永恆設計師的定價。當高淨值客戶可以購買真正的設計師作品時，您認為將他們轉化為購買 RH 是一項挑戰嗎？

Yes, I think we're pretty much a really good value against any of that. So there's always going to be interior designers that will take some of these products and go to their local area upholstery guy and knock it off. And -- but for the most part, we're going to be -- I mean, against the showrooms and against the real luxury brands in the categories and stuff like that, we're going to be a disruptive value. And so I think our competitors are going to be scrambling.

是的，我認為我們對任何一個都非常有價值。因此，總會有室內設計師將其中一些產品帶到當地的室內裝潢人員那裡，然後將其淘汰。而且 - 但在大多數情況下，我們將 - 我的意思是，反對陳列室和類別中的真正奢侈品牌以及類似的東西，我們將成為一種顛覆性的價值。所以我認為我們的競爭對手將會爭先恐後。

There are no further questions at this time. I would now like to turn the call back over to Gary Friedman.

目前沒有其他問題。我現在想把電話轉回給加里·弗里德曼。

Great. Well, thank you, everyone, for your interest. And hopefully, we'll see some of you at the opening of RH England. And other than that, we'll talk to you next quarter. Thank you.

偉大的。嗯，謝謝大家的關注。希望我們能在 RH England 開幕式上見到你們中的一些人。除此之外，我們將在下個季度與您交談。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。