RH (RH) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Today's conference will begin momentarily. (Operator Instructions) Thank you for your patience.

女士們、先生們，感謝你們的支持。今天的會議馬上就開始。（操作員指示）感謝您的耐心等待。

Thanks or hello, and welcome to the RH first-quarter 2025 earnings call. (Operator Instructions) I would now like to turn the conference over to Allison Malkin of ICR. You may begin.

謝謝或您好，歡迎參加 RH 2025 年第一季財報電話會議。（操作員指示）現在我想將會議交給 ICR 的 Allison Malkin。你可以開始了。

Thank you. Good afternoon, everyone. Thank you for joining us for our first quarter fiscal 2025 earnings call. Joining me today are Gary Friedman, Chairman and Chief Executive Officer; and Jack Preston, Chief Financial Officer.

謝謝。大家下午好。感謝您參加我們的 2025 財年第一季財報電話會議。今天與我一起出席的還有董事長兼執行長 Gary Friedman 和財務長傑克普雷斯頓 (Jack Preston)。

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, about the business, and other matters referenced in our press release issued today. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filing as well as our press release issued today for a more detailed description of the risk factors that may affect our results.

在我們開始之前，我想提醒您注意我們的法律免責聲明，即我們今天將做出某些符合聯邦證券法含義的前瞻性聲明，包括有關前景、業務和我們今天發布的新聞稿中提及的其他事項的聲明。這些前瞻性陳述涉及許多風險和不確定性，可能導致實際結果大不相同。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，以獲得可能影響我們結果的風險因素的更詳細描述。

Please also note that these forward-looking statements reflect our opinions 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.

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，我們不承擔根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修訂結果的義務。

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.

此外，在本次電話會議中，我們可能會討論非公認會計準則財務指標，以調整我們的公認會計準則結果以消除某些項目的影響。您可以在今天的財務績效新聞稿中找到有關這些非公認會計準則財務指標的更多資訊以及這些非公認會計準則與公認會計準則指標的對帳表。

A live broadcast of this call is also available on the Investor Relations section of our website at ir.rh.com.

本次電話會議的現場直播也可在我們網站 ir.rh.com 的投資者關係部分觀看。

With that, I would now like to turn the call over to Gary.

說完這些，我現在想把電話轉給加里。

Great. Thank you, Allison. Good afternoon, everyone. Let's see if we can get off to a better start than last quarter. I should ask to was the person that after the call that I got my response to speculate around the room. I can't remember, could you (inaudible).

偉大的。謝謝你，艾莉森。大家下午好。讓我們看看我們是否能比上一季有一個更好的開始。我應該問的是，在接到電話後，我得到了對房間進行猜測的回應。我不記得了，你能嗎（聽不清楚）。

Anyway, thank you and thanks for joining us. Let me take you through the highlights of our letter, and we will open the call to questions.

無論如何，謝謝你並感謝你的加入我們。讓我向您介紹我們這封信的重點，然後我們將開始提問。

Support people, partners, and shareholders, our industry-leading growth continued into fiscal 2025 as revenue increased 12% in the first quarter. Despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years. Both adjusted operating margin of 7% and adjusted EBITDA of 13.1% were at the high end of our expectations, and we achieved positive free cash flow of $34 million in the quarter.

支持員工、合作夥伴和股東，我們行業領先的成長勢頭持續到 2025 財年，第一季營收成長了 12%。儘管關稅不確定性和近 50 年來最糟糕的房地產市場造成了兩極化的影響。調整後的營業利潤率為 7%，調整後的 EBITDA 為 13.1%，均處於我們預期的高端，並且本季度我們實現了 3,400 萬美元的正自由現金流。

The substantial investments to elevate and expand our product and platform have resulted in significant share gains and strategic separation, positioning the RH brand for continued growth over the next decade.

我們為提升和擴展產品和平台而進行的大量投資已帶來顯著的市場份額成長和策略分離，為 RH 品牌在未來十年的持續成長奠定了基礎。

We continue to be pleased with the second-year demand trends at RH England, with the Gallery up 47% in the first quarter and online demand of 44%. Current demand trends indicate the Gallery will now reach approximately $37 million to $39 million of demand in 2025, its second, the full fiscal year, with the online demand reaching approximately $8 million.

我們繼續對 RH England 第二年的需求趨勢感到滿意，第一季畫廊需求成長了 47%，線上需求成長了 44%。目前的需求趨勢表明，該畫廊在 2025 年（第二個整個財政年度）的需求將達到約 3,700 萬至 3,900 萬美元，其中線上需求將達到約 800 萬美元。

To put those results into perspective, if an RH Gallery in the English Countryside, with an estimated population of 100,000 in a 10-mile radius two hours outside of London can generate $46 million of total demand in its second full fiscal year, what can an RH Gallery in the center of Mayfair, the most exclusive shopping district in London, with a population of 9.7 million do in its second full fiscal year? We believe exponentially more.

為了更清楚地理解這些結果，如果一家位於英國鄉村、距離倫敦兩小時車程、半徑 10 英里、人口約 10 萬的 RH 畫廊可以在其第二個完整財政年度產生 4600 萬美元的總需求，那麼一家位於倫敦最高檔購物區梅菲爾中心、人口約 970 萬的 RH 畫廊可以在其第二個完整財政年度產生什麼效果呢？我們的信心倍增。

While many questioned the decision to open our first RH Gallery in such a remote location, believing it would fail, what they failed to understand is the value of doing something so extraordinary and remarkable that it breaks through the clutter and creates a conversation that is authentic and uniquely our own. We’ve learned during our journey at RH that when we’ve done extraordinary and remarkable work, we’ve always figured out a way to monetize it, and we’ve also learned that it’s hard to monetize ordinary and unremarkable.

雖然許多人質疑我們在如此偏遠的地方開設第一家 RH 畫廊的決定，認為它會失敗，但他們未能理解的是，做一些如此非凡和卓越的事情的價值在於，它能突破混亂，創造出真實而獨特的對話。我們在 RH 的發展歷程中了解到，當我們完成非凡而卓越的工作時，我們總能找到將其貨幣化的方法，同時我們也了解到，將平凡而平凡的工作貨幣化是很困難的。

We are also pleased to report that our business in Europe continues to accelerate, with demand growth of 60% in the first quarter across two comparable Galleries, RH Munich and RH Dusseldorf. We are also pleased with the continued demand acceleration in our non-comparable Galleries, RH Brussels and RH Madrid.

我們也很高興地報告，我們在歐洲的業務繼續加速發展，第一季兩家同類畫廊 RH 慕尼黑和 RH 杜塞爾多夫的需求成長了 60%。我們也很高興看到我們無與倫比的畫廊 RH 布魯塞爾和 RH 馬德里的需求持續增長。

Last week, our leadership traveled to RH England, RH Madrid, and the soon to open, RH Paris. While there, we met with our teams from all five Galleries, listening and learning as they identified opportunities that we both believe could double our current business over the next couple of years.

上週，我們的領導層前往了 RH 英國、RH 馬德里以及即將開幕的 RH 巴黎。在那裡，我們與來自所有五個畫廊的團隊會面，傾聽和學習他們發現的機會，我們都相信這些機會可以在未來幾年內使我們目前的業務翻倍。

We believe RH Paris, The Gallery on the Champs Élysées, will be our most elegant and inspiring Gallery yet. Located on the famous Parisian boulevard just off the Avenue Montaigne, it is at the epicenter of fashion and luxury. You will pass through 20-foot gold glided gates that lead you down a hedge-lined decomposed granite pathway into a beautifully landscaped garden where we've built a freestanding RH Interior Design Studio.

我們相信，RH Paris，香榭麗舍大街上的畫廊，將成為我們迄今為止最優雅、最鼓舞人心的畫廊。它坐落於蒙田大道旁著名的巴黎林蔭大道上，是時尚和奢華的中心。您將穿過 20 英尺高的金色滑動門，沿著樹籬環繞的花崗岩小路，進入風景優美的花園，我們在那裡建造了一個獨立的 RH 室內設計工作室。

Opposite the studio, you enter the Gallery through 18-foot bronze & brass doors flanked by trickling fountains and encounter the dramatic atrium with ornate railings, scissor stairs, and a magnificent glass elevator connecting the six floors and two restaurants. While enjoying lunch or dinner from our curated menu of American classics at Le Jardin RH located on the second-floor terrace overlooking the garden, you will be seated under a soaring curved glass atrium inspired by the Grand Palais, with a bar sculpted from and floating above a floor of rare white onyx.

在工作室對面，您可以通過兩側有涓涓細流噴泉的 18 英尺青銅和黃銅門進入畫廊，然後會看到帶有華麗欄桿、剪刀樓梯和連接六層樓和兩家餐廳的宏偉玻璃電梯的引人注目的中庭。當您在位於二樓露台俯瞰花園的 Le Jardin RH 餐廳享用我們精心挑選的美式經典菜餚的午餐或晚餐時，您將坐在受大皇宮啟發的高聳弧形玻璃中庭下，酒吧由珍稀的白色纈瑪瑙雕刻而成，漂浮在地板上。

Le Petit RH will occupy the top floor and the rooftop where you can take in majestic views of the Eiffel Tower and Grand Palais while enjoying a creative menu of small bites, special caviar dishes, and seafood towers while sipping a perfectly crafted cocktail or glass of champagne. Our plan is to open RH Paris in early September to coincide with Maison et Objet, the premier interior design show in Europe that attracts design professionals from around the world.

Le Petit RH 位於頂樓和屋頂，您可以在那裡欣賞艾菲爾鐵塔和大皇宮的壯麗景色，同時享用創意小吃、特色魚子醬菜餚和海鮮塔，同時品嚐精心調製的雞尾酒或一杯香檳。我們的計劃是於 9 月初開設 RH Paris，與巴黎家居裝飾博覽會 (Maison et Objet) 同期舉辦，後者是歐洲首屈一指的室內設計展，吸引了來自世界各地的設計專業人士。

When we assess the current business momentum across our existing Galleries, the upcoming openings of RH Paris, London, and Milan, all in iconic locations over the next twelve months, I can honestly say, we have never been more excited or confident about the desirability of the RH brand globally.

當我們評估現有畫廊的當前業務發展勢頭，以及未來十二個月內即將在標誌性地點開業的 RH 巴黎、倫敦和米蘭畫廊時，我可以誠實地說，我們從未對 RH 品牌在全球範圍內的吸引力感到如此興奮或自信。

Another topic we could not be more excited about is welcoming Lisa Chi back to Team RH as President, Co-Chief Merchandising, and Creative Officer. Lisa is a proven creative and merchandising force in our industry as witnessed by the product transformation and brand elevation she led over the past four years at Arhaus in her role as Chief Merchandising Officer and prior as a consultant to the company.

另一個讓我們興奮不已的話題是歡迎 Lisa Chi 重返 RH 團隊，擔任總裁、聯合首席行銷長和創意長。Lisa 是我們行業中公認的創意和行銷力量，過去四年來，她在 Arhaus 擔任首席行銷長並擔任公司顧問期間，領導了產品轉型和品牌提升，證明了這一點。

Lisa will co-lead all merchandising and creative efforts with Eri Chaya, President, Co-Chief Merchandising and Creative Officer, and a member of the RH Board of Directors.

Lisa 將與總裁、聯合首席行銷長兼創意長、RH 董事會成員 Eri Chaya 共同領導所有行銷和創意工作。

Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold, Warren Buffet. While we expect a higher risk business environment this year due to the uncertainty caused by tariffs, market volatility, inflation risk, and an increasing level of global discord, we believe it’s important to separate the signal from the noise. The fact is, we’ve been operating in the worst housing market in almost 50 years.

每隔十年左右，經濟的天空就會佈滿烏雲，然後就會短暫地下起金雨，華倫‧巴菲特。儘管我們預計今年的商業環境風險會更高，因為關稅、市場波動、通膨風險以及全球不和諧加劇造成了不確定性，但我們認為，將訊號與噪音區分開來非常重要。事實上，我們正​​處於近 50 年來最糟糕的房地產市場。

For context, in 1978, there were 4.09 million existing homes sold when the US had a population of 223 million. Contrast that to 2024 where 4.06 million existing homes sold with a population of 341 million, and it illuminates just how depressed the housing market has been this year.

具體來說，1978 年，美國人口為 2.23 億，現房銷售量為 409 萬套。相較之下，2024 年，全國人口為 3.41 億，現房銷售量為 406 萬套，足以說明今年的房地產市場有多低迷。

Despite that fact, we are performing at a level most would expect in a robust housing market. We believe it’s a result of investing with a very narrow focus and a long-term view, or what we like to call, an inch wide and a mile deep, elevating and expanding our platform by creating the most desired products presented in the most inspiring spaces in the world, with bespoke interior design services and beautiful restaurants that generate energy, engagement, and tremendous awareness of the RH brand, while also serving as a profitable customer acquisition vehicle.

儘管如此，在強勁的房地產市場中，我們的表現仍達到了大多數人所期望的水平。我們相信這是以非常狹窄的焦點和長遠的眼光進行投資的結果，或者我們喜歡稱之為一英寸寬一英里深，透過在世界上最具啟發性的空間中創造最受歡迎的產品來提升和擴展我們的平台，提供定制的室內設計服務和美麗的餐廳，為 RH 品牌帶來活力、參與度和巨大的知名度，同時也作為一種有利可圖的客戶。

Our intentions and attention to detail are reflected in everything we do and in every house we turn into a home. While our business has been strong, it has been so due to action versus inaction, innovating versus duplicating, investing versus divesting, and aggressively taking market share during this downturn so we are positioned to create long-term strategic separation on the other side of it.

我們的意圖和對細節的關注體現在我們所做的每一件事以及我們改造成家的每棟房子中。雖然我們的業務一直表現強勁，但這是因為我們在經濟低迷時期採取了行動而非無所作為、創新而非重複、投資而非撤資，並積極搶佔市場份額，因此我們有能力在經濟低迷時期實現長期戰略分離。

We are investing in the most iconic global locations in retail that will likely never be replicated in our lifetimes. We are building a global hospitality company with multiple concepts across multiple continent -- countries and continent. We are creating a global bespoke interior design business that regularly does $1 million-plus full installations.

我們正在投資全球最具代表性的零售地點，這些地點在我們的有生之年可能永遠無法複製。我們正在打造一家橫跨多個大洲（多個國家和大洲）的具有多種理念的全球性酒店公司。我們正在創建一家全球客製化室內設計公司，定期進行價值 100 萬美元以上的完整安裝。

We are building a global contract and hospitality business where our products are featured in some of the finest hotels and residential projects in the world, and we are creating the most desirable and distinguished brand in our industry, all while forecasting an adjusted EBITDA margin north of 20%. Imagine what our margins and cash flow might look like in a robust housing market once we begin to cycle and leverage those investments.

我們正在建立一項全球合約和酒店業務，我們的產品將應用於世界上一些最好的酒店和住宅項目，我們正在打造業內最受歡迎和最傑出的品牌，同時預測調整後的 EBITDA 利潤率將達到 20% 以上。想像一下，一旦我們開始循環和利用這些投資，在強勁的房地產市場中我們的利潤和現金流會是什麼樣子。

While we began the year with meaningful debt, almost entirely due to our stock repurchases of $2.2 billion, we also began the year with incredible business momentum and meaningful assets. The assets include real estate that we believe has an estimated equity value of approximately $500 million, that we plan to monetize opportunistically as market conditions warrant, and excess inventory of $200 million to $300 million of cost that we plan to turn into cash over the next 12 to 18 months as we optimize our assortments post our product transformation.

雖然我們在年初就背負了巨額債務，這幾乎完全是由於我們回購了 22 億美元的股票，但我們在年初也擁有令人難以置信的業務發展勢頭和可觀的資產。這些資產包括我們認為估值約為 5 億美元的房地產，我們計劃在市場條件允許的情況下適時將其貨幣化，以及價值 2 億至 3 億美元的過剩庫存，我們計劃在未來 12 至 18 個月內隨著產品轉型後的產品組合優化，將其轉化為現金。

We are forecasting to generate $250 million to $350 million of free cash flow in 2025, and our plans also call for significant and growing cash flow from operations and lower capital requirements over the next several years as we cycle this aggressive investment period. We estimate that our adjusted capital expenditures will decrease to a range of $200 million to $250 million in 2026 and $150 million to $200 million in 2027 and beyond. We remain confident in our ability to make the necessary investments to continue our industry-leading growth, while significantly reducing debt and lowering interest expense.

我們預計 2025 年將產生 2.5 億至 3.5 億美元的自由現金流，隨著我們進入這一積極的投資期，我們的計劃還要求在未來幾年內實現顯著且不斷增長的營運現金流和降低資本要求。我們估計，到 2026 年，調整後的資本支出將減少至 2 億至 2.5 億美元，到 2027 年及以後，將減少至 1.5 億至 2 億美元。我們仍然相信我們有能力進行必要的投資以繼續保持行業領先的成長，同時大幅減少債務並降低利息支出。

As Warren Buffett wrote in his 2016 letter to Berkshire Hathaway shareholders, every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it is imperative that we rush outdoors carrying washtubs, not teaspoons.

正如巴菲特在 2016 年致波克夏海瑟威股東的信中所寫，每隔十年左右，經濟的天空就會佈滿烏雲，然後就會短暫地下起金雨。當這樣的暴雨出現時，我們必須帶著洗衣盆而不是茶匙衝到戶外。

Our debt is reflective of a washtub bet on ourselves. We repurchased 60% of our outstanding shares that greatly benefited our long-term shareholders post the publishing of Mr. Buffett’s letter in 2016 and 2017, and recently repurchased 30% of the outstanding shares during this housing downturn in 2022 and 2023.

我們的債務是我們自己在洗衣盆上所下的賭注的體現。我們在 2016 年和 2017 年巴菲特先生的信函發布後回購了 60% 的流通股，這極大地造福了我們的長期股東，並且在 2022 年和 2023 年房地產市場低迷期間回購了 30% 的流通股。

In addition, we believe another washtub bet is to play offense in the current environment by increasing our membership discount from 25% to 30%. This incremental incentive will position us to capture increased market share and drive additional membership, which all serve us extremely well when the housing market recovers.

此外，我們認為另一個策略是在當前環境下採取攻勢，將會員折扣從 25% 提高到 30%。這種增量誘因將使我們能夠獲得更多的市場份額並吸引更多會員，當房地產市場復甦時，這些都會對我們非常有利。

While the sky in our sector has been darkened by inflation, interest rates, tariffs, and global politics, those clouds will soon too pass, and it will not only be clear skies, but also be clear that it was a good time to be a shareholder of RH.

雖然我們行業的陰雲因通貨膨脹、利率、關稅和全球政治而變得陰暗，但這些陰雲很快就會散去，不僅天空晴朗，而且可以清楚地看到，現在是成為 RH 股東的好時機。

Reciprocal tariffs. We have continued to shift sourcing out of China and expect receipts to decrease from 16% in Q1 to 2% in Q4, with a meaningful portion of the tariff absorbed by our vendor partners. We have also resourced a significant portion of our upholstered furniture to our own North Carolina factory. We are now projecting that 52% of our upholstered furniture will be produced in the United States and 21% will be produced in Italy by the end of fiscal 2025.

互惠關稅。我們繼續將採購轉移出中國，預計收入將從第一季的 16% 下降到第四季的 2%，其中很大一部分關稅將由我們的供應商合作夥伴吸收。我們還為我們自己的北卡羅來納州工廠提供了很大一部分軟墊家具。我們現在預計，到 2025 財年末，52% 的軟墊家具將在美國生產，21% 的軟墊家具將在義大利生產。

While there remains uncertainty until the reciprocal tariff negotiations are complete, we have proven we are well positioned to compete favorably in any market conditions.

儘管在互惠關稅談判完成之前仍存在不確定性，但我們已經證明，我們有能力在任何市場條件下進行有利競爭。

Let's look at our outlook. Despite the speculative and uncertain outcome related to tariffs and the macroeconomic environment, we are maintaining our current guidance for fiscal 2025, assuming the existing tariffs remain unchanged.

讓我們看看我們的前景。儘管與關稅和宏觀經濟環境相關的結果存在猜測和不確定性，但我們仍維持對 2025 財年的當前指導，假設現有關稅保持不變。

To mitigate risk, we are delaying the launch of the new concept that was planned for the second half of 2025 to the Spring of 2026 when there is more certainty regarding tariffs and price of products.

為了降低風險，我們將原定於 2025 年下半年推出的新概念推遲到 2026 年春季，屆時關稅和產品價格將更加確定。

Additionally, due to the significant and unexpected Liberation Day Tariffs announced on April 2, shipments and resourcing efforts were disrupted globally. We believe the disruption will negatively impact revenues by approximately 6 points in the second quarter and will be recovered in the second half, which is reflected in our outlook below.

此外，由於 4 月 2 日宣布的重大且意外的解放日關稅，全球的貨運和資源供應工作受到干擾。我們認為，此次中斷將對第二季的收入造成約 6 個百分點的負面影響，並將在下半年恢復，這反映在我們下面的展望中。

For fiscal 2025, we are forecasting revenue growth of 10% to 13%, adjusted operating margin of 14% to 15%, adjusted EBITDA margin of 20% to 21%, and free cash flow of $250 million to $350 million.

對於 2025 財年，我們預測營收成長 10% 至 13%，調整後營業利潤率成長 14% 至 15%，調整後 EBITDA 利潤率成長 20% 至 21%，自由現金流成長 2.5 億美元至 3.5 億美元。

Second-quarter 2025 guidance includes revenue growth of 8% to 10%, adjusted operating margin of 15% to 16%, and adjusted EBITDA margin of 20.5% to 21.5%. The above outlook includes an approximately negative 180-basis-point operating margin impact from investments and start-up costs to support our international expansion.

2025 年第二季指引包括營收成長 8% 至 10%、調整後營業利潤率 15% 至 16% 以及調整後 EBITDA 利潤率 20.5% 至 21.5%。上述展望包括為支持我們的國際擴張而進行的投資和啟動成本對營業利潤率造成的約負 180 個基點的影響。

Every active creation is first an act of destruction public, Pablo Picasso. We have worked hard to destroy the former version of ourselves and are in the process of unleashing what we believe is an exponentially more inspiring and disruptive RH brand. We believe the important investments we are making to elevate and expand our product and platform during this depressed housing cycle are creating a level of strategic separation in our industry that rivals the most important brands in the world.

每一個主動的創造首先是一種破壞行為，公眾，巴勃羅·畢卡索。我們努力摧毀以前的自我，並正在釋放我們認為更具啟發性和顛覆性的 RH 品牌。我們相信，在當前低迷的房地產週期中，我們為提升和擴展我們的產品和平台而進行的重要投資，正在為我們行業創造與世界上最重要的品牌相媲美的戰略分離水平。

Our product elevation and expansion plans for 2025 includes our 2025 RH Outdoor Sourcebook arrived in homes early February with 18 new furniture collections, an exciting new textiles offering, plus a significantly improved in-stock position to start the season versus a year ago. While the business started strong, we experienced a slowdown following the reciprocal tariffs.

我們 2025 年的產品提升和擴展計劃包括我們的 2025 年 RH 戶外手冊，該手冊將於 2 月初進入千家萬戶，其中包含 18 個新家具系列、令人興奮的新紡織品，以及與去年同期相比，本季度開始時的庫存狀況顯著改善。雖然業務起步強勁，但互惠關稅實施後，我們的業務開始放緩。

Due to the compressed peak selling season and the market becoming highly promotional, we responded by increasing our RH membership discount to 35% for a limited time to maximize market share in this important category.

由於銷售旺季壓縮，市場促銷活動增多，我們採取了相應措施，在限定時間內將 RH 會員折扣提高至 35%，以最大限度地提高這一重要類別的市場份額。

The introduction of our new RH Interiors Sourcebook arrived in homes mid-February. We’ve been pleased with the early response to the new collections despite what has been a volatile period post the tariff announcements.

我們的新版 RH Interiors Sourcebook 已於二月中旬進入千家萬戶。儘管關稅公告發布後市場經歷了一段動盪時期，但我們對新產品的早期反應感到滿意。

Our RH Modern Sourcebook is in home this week with 18 new collections across furniture, upholstery, lighting, rugs, and textiles. We are introducing a new design aesthetic, Japandi, harmonizing elements of Japanese serenity and Scandinavian simplicity.

我們的 RH Modern Sourcebook 本週推出 18 個新系列，涵蓋家具、室內裝潢、燈具、地毯和紡織品。我們正在推出一種新的設計美學，Japandi，融合了日本的寧靜和斯堪的納維亞的簡約元素。

As mentioned, we are delaying the launch of the significant new brand extension previously planned for the Fall of 2025 to the Spring of 2026 that we believe will meaningfully expand the market size and share of the RH brand. This new brand extension will include a Sourcebook and three freestanding Galleries in San Francisco, West Hollywood, and Greenwich, Connecticut. We will be sharing more details of this exciting new venture later this year.

如上所述，我們將原計劃於 2025 年秋季推出的重要新品牌擴展推遲到 2026 年春季，我們相信這將顯著擴大 RH 品牌的市場規模和份額。這個新品牌擴展將包括一本《資料手冊》和位於舊金山、西好萊塢和康乃狄克州格林威治的三個獨立畫廊。我們將在今年稍後分享有關這項令人興奮的新項目的更多細節。

Our platform elevation and expansion plans for 2025. We continue to open the most inspiring and immersive physical experiences in our industry and some would say the world. Spaces that are a reflection of human design, a study of balance, symmetry, and perfect proportions. Spaces that blur the lines between residential and retail, indoors and outdoors, home and hospitality. Spaces with garden courtyards, rooftop restaurants, wine and barista bars. Spaces that activate all of the senses, and spaces that cannot be replicated online.

我們的 2025 年平台提升與擴展計畫。我們將繼續開啟我們行業乃至全世界最鼓舞人心、最身臨其境的實體體驗。空間是人類設計的體現，是對平衡、對稱和完美比例的研究。這些空間模糊了住宅與零售、室內與室外、家庭與飯店之間的界線。設有花園庭院、屋頂餐廳、葡萄酒和咖啡吧的空間。啟動所有感官的空間，以及無法在線上複製的空間。

Our plan to expand the RH brand globally, address new markets locally, and transform our North American Galleries represents a multi-billion-dollar opportunity. Our platform elevation and expansion plans for 2025 include the opening of seven Design Galleries in Oklahoma City and Montreal in the second quarter, plus Paris, Detroit, Manhasset, San Diego and Palm Desert in the second half. We also plan to expand our brand presence in East Hampton this week, by opening a freestanding RH Outdoor Gallery and are exploring plans to further enhance our Design Ecosystem with a New Concept Gallery in the near future.

我們計劃在全球擴展 RH 品牌、開拓本地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商機。我們 2025 年的平台提升和擴展計畫包括第二季度在俄克拉荷馬城和蒙特婁開設 7 家設計畫廊，下半年在巴黎、底特律、曼哈塞特、聖地牙哥和棕櫚沙漠開設設計畫廊。本週，我們還計劃在東漢普頓開設一個獨立的 RH 戶外畫廊，擴大我們的品牌影響力，並正在探索在不久的將來透過新概念畫廊進一步增強我們的設計生態系統的計劃。

As previously communicated, we anticipate an inflection of our business in Europe as we begin to open in the important brand building markets of Paris in 2025, plus London and Milan in 2026, all with dramatic and brand-building hospitality experiences. We believe post each opening, we will begin to have the scale to support the necessary advertising investments to accelerate our growth in Europe.

正如之前所傳達的，我們預計我們在歐洲的業務將發生轉變，因為我們將於 2025 年開始在巴黎等重要的品牌建設市場開業，並於 2026 年開始在倫敦和米蘭開業，所有這些市場都將帶來引人注目的品牌建設酒店體驗。我們相信，每次開業後，我們將開始擁有支持必要廣告投資的規模，以加速我們在歐洲的成長。

Looking forward, we plan to accelerate our platform expansion strategy to include the opening of seven to nine new Galleries per year plus two to three Design Studios/Outdoor Galleries or New Concept Galleries per year that increase our current presence in underpenetrated markets or open new markets to the RH brand.

展望未來，我們計劃加快平台擴展策略，包括每年開設七至九家新畫廊，加上每年兩至三家設計工作室/戶外畫廊或新概念畫廊，以增加我們目前在滲透不足市場的影響力或為 RH 品牌開拓新市場。

Every movement has a lunatic fringe, Theodore Roosevelt, America’s first Nobel Prize winner, commander of the legendary Rough Riders, Medal of Honor recipient, promoter of the Conservation Movement, leader of the Progressive Movement, noted for his exuberant personality and ranked by scholars as one of the greatest presidents.

每個運動都有一個極端分子，西奧多·羅斯福，美國第一位諾貝爾獎得主，傳奇騎兵團的指揮官，榮譽勳章獲得者，自然保護運動的推動者，進步運動的領導者，以其熱情洋溢的個性而聞名，被學者評為最偉大的總統之一。

Theodore “Teddy” Roosevelt proclaimed in his famous speech at the Sorbonne in Paris, it is not the critic who counts; not the man or woman who points out how the strong man stumbles, or where the doer of deeds could have done better. The credit belongs to the man or woman who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again. Because there is no effort without error or shortcoming.

西奧多·「泰迪」·羅斯福在巴黎索邦大學的著名演講中宣稱，重要的不是批評家；不是那些指出強者如何跌倒或實干家在哪些方面可以做得更好的男人或女人。榮譽屬於真正站在競技場上的男男女女，他們臉上沾滿塵土、汗水和鮮血，他們英勇奮鬥，他們一次又一次地犯錯、失敗。因為沒有任何努力是沒有錯誤或缺點的。

But he or she who actually strives to do the deeds, who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who at his best, knows in the end, the triumph of high achievement; and who at his worst, if he fails, at least fails while daring greatly. So his place shall never be with those cold and timid souls who know neither victory nor defeat.

但是，真正努力去做事的人，懂得偉大的熱情和奉獻；為有價值的事業奉獻自己；在最好的情況下，最終會知道巨大成就的勝利；而在最壞的情況下，如果失敗了，至少也是在勇敢地失敗了。所以他永遠不會與那些既不知道勝利也不知道失敗的冷漠、膽怯的靈魂在一起。

While our ambitions are not political, they are personal. We remain inspired by the progressive thinkers, unafraid to push forward new ideas and fresh perspectives. It’s a culture of leadership versus followship, innovation versus duplication, enlightenment versus ego. It’s believing none of us are smarter than all of us, that we need all the brains in the game and the egos out of the room. It’s about thinking until it hurts, until we can see what others can’t see, so we can do what others can’t do.

儘管我們的抱負與政治無關，但卻是個人的。我們仍然受到進步思想家的啟發，無所畏懼地推進新思想和新觀點。這是一種領導與追隨、創新與複製、啟蒙與自我的文化。我們相信沒有人比我們所有人更聰明，我們需要所有人都聰明地參與遊戲，而不是自負。思考直到痛苦，直到我們能看到別人看不到的東西，這樣我們才能做別人做不到的事。

That’s how you transform a money-losing restoration hardware store at Aventura Mall in Miami that did $2 million in annual sales into an RH Gallery that does $44 million in the exact same space with the exact same square footage. It’s also how we will transform that $44 million dollar

這就是如何將邁阿密阿文圖拉購物中心一家年銷售額 200 萬美元、虧損的修復五金店改造成在相同空間、相同面積內銷售額 4,400 萬美元的 RH 畫廊。這也是我們如何將 4400 萬美元轉化為

legacy Gallery into a $100 million-plus RH Design Compound, a yet to be unveiled multi-building design resort of sorts in the parking lot of the same shopping center.

遺產畫廊將被改造成價值 1 億多美元的 RH 設計綜合體，這是一座位於同一購物中心停車場的多建築設計度假村，目前尚未揭幕。

We began this journey over 20 years ago with a vision of transforming a nearly bankrupt business that had a $20 million market cap and a box of Oxydol laundry detergent on the cover -- in its catalog into the leading luxury home brand in the world. The lessons and learnings, the insights and intricacies, the sacrifices made, and the scar tissues developed by getting knocked down 10 times and getting up 11 leads to the development of the mental and moral qualities that build character in individuals and form cultures in organizations, lessons that can’t be learned in a classroom or by managing a business, lessons that must be earned by building one.

20 多年前，我們開始了這段旅程，我們的願景是將一家瀕臨破產、市值 2000 萬美元、產品目錄封面上印有一盒 Oxydol 洗衣液的企業轉型為全球領先的豪華家居品牌。經歷 10 次跌倒和 11 次爬起後，我們所得到的教訓和知識、獲得的洞見和經驗、做出的犧牲以及所留下的傷疤，都有助於培養個人的品格和組織文化，而這些教訓是無法在課堂上或透過管理企業學到的，必須透過創造企業才能獲得。

Are we a part of the lunatic fringe? If it means, as President Roosevelt said in his speech at the Sorbonne, that our place shall never be with those cold and timid souls who know neither victory nor defeat, then put us in that arena. Onward Team RH. Carpe Diem.

我們是極端分子的一部分嗎？如果這意味著，正如羅斯福總統在索邦大學的演講中所說的那樣，我們永遠不會與那些既不知道勝利也不知道失敗的冷漠、膽怯的靈魂為伍，那麼就讓我們進入那個競技場吧。RH 團隊繼續前進。及時行樂。

Operator, we'll now open the call to questions.

接線員，我們現在開始問答環節。

(Operator Instructions) Steven Forbes, Guggenheim.

（操作員指示）史蒂文福布斯，古根漢。

Gary, you started the letter this time focusing on Europe, and it may be too early and not sure if you want to repeat maybe what you've done the past. But given how demand has ramp at RH England, would love to hear your sort of high-level thoughts or initial thoughts on how you're demand planning forecasting for Paris, London, and Madrid have evolved.

加里，你這封信的開頭重點是歐洲，現在可能還為時過早，我不確定你是否想重複過去所做的事情。但考慮到 RH England 的需求如何增長，我很想聽聽您對巴黎、倫敦和馬德里的需求計劃預測如何發展的高層想法或初步想法。

Many of us sort of try to think about where the business looks in Europe 12 or 24 months from now, especially as you have advertising investments behind them.

我們中的許多人都會試著去思考 12 或 24 個月後歐洲的業務前景如何，特別是當你背後有廣告投資的時候。

Sure. I think what we've learned in this first couple of years. And again, not all the galleries have been open during this time is that I think that the headline is that when you really look at the patterns, you look at it closely, you look at what you're doing right, you look at what you're doing wrong is that the RH brand as it is today, we believe we've kind of have enough data to say it can be as disruptive and productive in Europe as it can be in America.

當然。我想我們在頭幾年學到了什麼。再說一次，並不是所有的畫廊在這段時間都開放了，我認為標題是，當你真正觀察這些模式時，你會仔細觀察，看看你做對了什麼，看看你做錯了什麼，那就是今天的 RH 品牌，我們相信我們已經有足夠的數據來表明它在歐洲的顛覆性和生產力可以和在美國一樣高。

And that's what the early trends look like, and the early trends are littered with what I'd call just choppy execution, right? A company in America trying to open a company in Europe. We're not experts there. Our brand has never been anywhere there.

這就是早期趨勢的樣子，早期趨勢充斥著我稱之為不穩定的執行，對嗎？一家美國公司試圖在歐洲開設一家公司。我們不是這方面的專家。我們的品牌從未出現在那裡。

We've got an excellent people in all of our galleries and leading the teams, but you listen to people and everybody tells you, oh you need much smaller furniture or you need color or you need this or you need picture frames and candles and more accessories and all these things. And you start to find out if you're in business area, you start to get real data on what other people do, what their volumes are. And we're just able to connect the dots and see the patterns and say, wow, once we fix like three things -- three headline things that we got.

我們所有的畫廊和團隊都有優秀的人才，但你聽取人們的意見，每個人都會告訴你，哦，你需要更小的家具，或者你需要顏色，或者你需要這個，或者你需要相框和蠟燭以及更多的配件和所有這些東西。並且當您開始發現您是否處於商業領域時，您就會開始獲得有關其他人所做的事情以及他們的交易量的真實數據。我們只要把這些點連接起來，看到其中的模式，然後說，哇，一旦我們解決了三個問題——我們就能得到三個主要問題。

We were in a conference room until 04:00 in the morning taking questions from our team. They would have kept going. We had to kick them out. But they're so excited. And if we can improve three pieces of this, we have not having the right fabrics because with flammability issues in the US, we put now the right fabrics.

我們一直在會議室裡直到凌晨 4 點回答團隊提出的問題。他們會繼續前進。我們不得不把他們趕出去。但他們非常興奮。如果我們可以改進這三個部分，那麼我們就不會擁有合適的布料，因為美國有易燃性問題，我們現在可以使用合適的布料。

We couldn't -- we stock this -- the DC over there, a year before we opened, RH team wins because we had all the COVID issues of trying to stop and start and build and so on and so forth. We kept having delays. Nobody wanted to come out and do a check on the property or permit sign off.

我們無法——我們在那邊的 DC 有存貨——在我們開業前一年，RH 團隊獲勝了，因為我們遇到了所有 COVID 問題，試圖停止、啟動和建造等等。我們一直在拖延。沒有人願意出來檢查財產或簽署許可證。

I mean [it's of funny] when you build out the remote area like that. But we opened, and we really didn't have the right product in the distribution center. We just went through the biggest merchandising transformation in our history, and I'm sure in the history of this industry by multiples. And so not having -- you're going through a product transformation with the -- our business -- the core of the business is here.

我的意思是，當你建造那樣的偏遠地區時，這很有趣。但我們開業了，配送中心確實沒有合適的產品。我們剛剛經歷了歷史上最大的商品銷售轉型，我相信這在我們行業歷史上將是數倍的。因此，您正在經歷產品轉型—我們的業務—業務的核心就在這裡。

So we need -- you're testing many new collections. We need the goods here.

所以我們需要—您正在測試許多新系列。我們這裡需要貨物。

So when you're figuring out what the best sellers are and so on and so forth, well, those just aren't making it to Europe on the first go round or two. We're trying to optimize the business here, and we're fighting through the worst housing market any of us have ever been in. I've been doing this for 40 years now. I've never been in a third year of down housing market. I think every one of them have been 12 to 18 months. So you've got to stay really focused in markets like these and maximize market share and so on and so forth.

因此，當您想弄清楚哪些書最暢銷等等時，您會發現，這些書在第一輪或第二輪就無法進入歐洲。我們正在努力優化這裡的業務，並正在努力應對我們所經歷過的最糟糕的房地產市場。我已經這樣做了 40 年了。我從來沒有經歷過房地產市場連續第三年低迷的情況。我認為他們每個人都已經 12 到 18 個月了。因此，你必須真正專注於這樣的市場，並最大限度地提高市場份額等等。

So just the execution on just being in stock, looking at the kind of special orders because many of our vendors couldn't make the products with the flame retardants. And the orders weren't that big. So they weren't on the front burner and if we just do kind of three big things, our team believes our business can double. That's how many customers were turning away. And we've got five-month lead times in special orders.

因此，只需根據庫存執行，查看特殊訂單，因為我們的許多供應商無法生產含有阻燃劑的產品。而且訂單量也不是很大。所以它們不是首要任務，如果我們只做三件大事，我們的團隊相信我們的業務可以翻倍。這就是許多顧客流失的原因。我們的特殊訂單的交貨時間為五個月。

So I sit here and go, wait a minute. We can see the trends across all of these galleries and some better than others as they're going to be. But the most part, they're going to trend, I believe, over the next couple of years to levels that will drive four-wall profitability, four-wall cash contributions as good or better than the US. That's what it's starting to look like. And if we really kind of fix some of these things like you just start to get really excited what this model can look like.

所以我坐在這裡，等一下。我們可以看到所有這些畫廊的趨勢，有些畫廊的趨勢會比其他畫廊更好。但我相信，在未來幾年內，它們將在很大程度上趨向於推動四壁盈利能力、四壁現金貢獻與美國相當或更好的水平。現在看起來就是這樣的。如果我們真的解決了其中的一些問題，你會開始對這個模型的外觀感到非常興奮。

So I would say we're just -- we were so excited in Europe, we couldn't sleep like when we're just listening and learning and we're looking at the trends building and we're realizing that there's so much more opportunity. So we feel enlightened and energized and really good about the potential. Yeah, we're going to get some things wrong, but we made a big bet, right?

所以我想說，我們只是——我們在歐洲感到非常興奮，我們無法入睡，就像我們只是在傾聽和學習，我們正在觀察趨勢的發展，我們意識到還有更多的機會。因此，我們感到振奮、充滿活力，並且對潛力充滿信心。是的，我們確實會犯一些錯誤，但是我們已經下了很大的賭注，對吧？

We took multiple locations at one time from [Abercrombie] to get the Paris and London locations, which could have taken us 20 years to find locations like that. Those were critical, critical to the brand. And I mean, it's only my wife [Bella] at a best friend wedding in London and she was out last night with a huge group of people. And if anybody has been in London, they'll walk by our Mayfair site because it's the biggest, the truvian man you've ever seen with our design that is on the building and people are taking pictures of it, posting an Instagram and other places.

我們一次從 [Abercrombie] 獲得了多個地點來獲得巴黎和倫敦的拍攝地點，而我們可能要花 20 年的時間才能找到這樣的地點。這些對於品牌來說至關重要。我的意思是，只有我的妻子 [貝拉] 參加了在倫敦舉行的一位最好朋友的婚禮，昨晚她和一大群人一起出去了。如果有人去過倫敦，他們都會經過我們的梅菲爾工地，因為它是最大的，是你所見過的帶有我們設計的特魯威人雕像，人們正在拍照，並將其發佈到 Instagram 和其他地方。

And she was shocked. She told me, honey, you cannot believe the buzz you have here in London. Now I mean I think we are going to rock when we opened Paris and London and Milan. I think we are going to change things. And we can talk about it for hours, Steve. So I better let the next question come.

她非常震驚。她告訴我，親愛的，你簡直不敢相信倫敦有這麼熱鬧。現在我的意思是，我認為當我們在巴黎、倫敦和米蘭開業時，我們將會大受歡迎。我認為我們將會改變一些事情。我們可以談論這個話題幾個小時，史蒂夫。所以我最好先問下一個問題。

I appreciate that, Gary. And then just a quick follow-up. The $500 million of real estate value that you noted, is there any way you could sort of break that down into two buckets sort of nonoperational assets or operational assets as we think about sort of transactions that would be sale-leaseback-oriented or transactions that would literally just be the monetization of assets?

我很感激，加里。然後只是快速的跟進。您提到的 5 億美元房地產價值，我們是否可以將其分為兩類：非經營性資產或經營性資產，我們考慮以售後回租為導向的交易或實際上只是資產貨幣化的交易？

Yes. We have quite a few galleries that are opening with some that have already opened that we own that we'll do sale leasebacks on not exactly the best time to do a sale leaseback, but you've got to balance that with what the interest costs are in long term, short term. Yes, short term, you can say, hey, let's sell leaseback now. You're going to sale leaseback at a different cap rate, right? And the sale is going to -- we'll determine the rent and we'll determine how much cash will take out of it and what our long-term rent stream and profitability stream to be.

是的。我們有不少即將開業的畫廊和一些已經開業的畫廊，我們將進行售後回租，雖然現在並不是進行售後回租的最佳時機，但你必須在長期和短期的利息成本之間取得平衡。是的，短期內，你可以說，嘿，我們現在就進行售後回租。您要以不同的資本化率進行售後回租，對嗎？銷售將會－我們將確定租金，我們將確定從中獲得多少現金，以及我們的長期租金流和獲利流是什麼。

So we're trying to be a little patient. We don't like paying so much interest right now, so there's a good attention there. But yeah, we've feel great about fixed or so sale leasebacks.

因此我們試著保持一點耐心。我們目前不喜歡支付那麼多利息，因此我們對此非常關注。但是的，我們對固定或售後回租感到非常滿意。

And then we have quite a big portfolio in Aspen. We're 50-50 joint venture partner. I mean people can pull out the press release from 2020, made the initial investment. And I think we have in the high-20s, low-30s properties, somewhere around the, call it, about 30 properties with many -- we invested not only because we are going to build an eco -- yeah, we're building an ecosystem what we call a gallery that we call the RH Mountain House, which is on absolutely the best corner in Aspen and it's going to be a three-level experience.

我們在阿斯彭擁有相當大的投資組合。我們是各佔50%股份的合資夥伴。我的意思是人們可以拿出 2020 年的新聞稿，進行最初的投資。我認為我們擁有 20 多處、30 多處房產，大約有 30 處，其中很多——我們投資不僅僅是因為我們要建造一個生態——是的，我們正在建造一個生態系統，我們稱之為畫廊，我們稱之為 RH Mountain House，它位於阿斯彭最好的角落，它將是一個三層的體驗。

It's probably the only building of its kind in Aspen. I mean it's incredible. There's been a three-story Atrium going up through the middle of with a restaurant on the rooftop with views of Ajax Mountain with -- all-day sun. And I know the frontage must be a couple of hundred feet that wraps around the corner. And we have an incredible guest house location. It's right on the street where Lift 1 is opening. So it will be a main thorough fare, and we're on a great corner. It's going to be a tremendous guest house.

這可能是阿斯彭唯一一座此類建築。我的意思是這太不可思議了。中間有一個三層樓高的中庭，屋頂上有一家餐廳，可以欣賞到阿賈克斯山的景色，整天都有陽光。我知道正面一定有幾百英尺長，環繞著角落。我們的賓館位置極佳。它就在 1 號電梯開放的街道上。因此，這將是一條主幹道，而且我們正處於一個絕佳的拐角處。這將會是一間很棒的賓館。

You guys have probably followed some of the news. What our partner Aspen likes to say, building an Aspen is harder than building on the moon. It's a little political there, sometimes a little difficult.

你們可能已經關注了一些新聞。正如我們的合作夥伴阿斯彭所說，建造一座阿斯彭比在月球上建造更難。那裡有點政治化，有時有點困難。

But we finally got our spot approved and we're getting ready to go the last couple of permits we're waiting on and then we'll finish out the guest house and we'll be open. And I would say, just based on the kind of incredible clientele we have at our current guest house that has just been built by word of mouth, I think Aspen is going to -- it will be the best hospitality experience in Aspen, nothing like it.

但我們最終獲得了批准，我們正準備領取最後幾張許可證，然後我們將完成客房的建設並開業。我想說，僅從我們目前的賓館透過口耳相傳而建立起來的令人難以置信的客戶群來看，我認為阿斯彭將會——這將是阿斯彭最好的接待體驗，沒有什麼能比得上。

And it's got some unique flavor versus New York. It's kind of like a contemporary lodge. But a lot of the core ideas around it being built ground privacy and luxury. And we like to say privacy is the one thing everybody has given away with social media. And it's one thing that the internet has taken away because you can google anything about everyone, and so the whole guest stuff is built around privacy.

與紐約相比，它具有一些獨特的風味。它有點像現代小屋。但其建造的許多核心概念都圍繞著隱私和奢華。我們想說，隱私是每個人透過社群媒體放棄的東西。但互聯網已經剝奪了這一點，因為你可以通過谷歌搜索到任何人的任何信息，所以整個客人服務都是圍繞隱私建立的。

And that's a really unique thing. And it's a small town of Aspen, we're kind of in the center of town, a great area, but you walk through and you're transported into this world of privacy and luxury. And I think it's going to be tremendous, and we've got a great restaurant campaign and Caviar bar.

這真是一件獨特的事。這是阿斯本的一個小鎮，我們位於鎮中心，是一個很棒的區域，但你穿過它，就會進入一個私密而奢華的世界。我認為這將是巨大的，我們有一個很棒的餐廳活動和魚子醬酒吧。

And we may or may not open exactly when we open with the bathhouse and spa. We may first get the guesthouse open and open that later. It's a more membership-driven business and it's a new business test. So it's not like the first thing we want to allocate capital to right now. We want to get the guesthouse open and get the branding open, and we'll probably price follow that up at some point with our bathhouse and spa.

我們也可能在浴室和水療中心開業時就開業，也可能不會。我們可能會先開放賓館，然後再開放那個。這是一個更以會員為導向的業務，也是一個新的業務測試。所以這不是我們現在想要分配資本的第一件事。我們希望開設賓館並推廣品牌，並且我們可能會在某個時候對我們的浴室和水療中心進行價格跟進。

It's all frame, the concrete framing is all there for a beautiful deal experience underground.

全部都是框架結構，混凝土框架都是為了帶給您美妙的地下交易體驗。

And then we've got just incredible tenants in our JV from some of the best luxury brands in the world, and we get to learn what it's like being a landlord with real estate kind of valuations and things can happen. So we've a lot of value in Aspen. We have a lot of value in multiple sale leasebacks.

我們的合資企業擁有來自世界上一些頂級奢侈品牌的優秀租戶，我們可以了解作為房東在房地產估價方面是什麼樣的，以及可能發生的情況。因此，我們在阿斯彭具有很大的價值。我們在多次售後回租方面擁有很大的價值。

We saw on some other properties and some -- we have an option on a second building in Madrid. Madrid is one of the biggest buildings in all of Europe. We've opened our first Madrid gallery, and it is ramping nicely, and it's small and it's beautiful and we're going to put a little cafe on the top floor, kind of like RH Monaco, and we think that will bring even more energy to it.

我們看到了一些其他的房產，還有一些——我們在馬德里有第二棟建築的選擇。馬德里是整個歐洲最大的建築之一。我們在馬德里開設了第一家畫廊，目前發展勢頭良好，它小巧而美麗，我們打算在頂樓開設一家小咖啡館，有點像 RH 摩納哥，我們認為這將為它帶來更多活力。

But we've bought a building to have an optionality to have two buildings, kind of like we do in Los Angeles. We have a freestanding 30,000 square-foot gallery in Melrose. We have a 15,000 county outdoor space, probably 20,000 square feet modern gallery and we may expand our ecosystem further there.

但我們買了一棟建築，可以選擇擁有兩棟建築，就像我們在洛杉磯所做的那樣。我們在梅爾羅斯擁有一座 30,000 平方英尺的獨立畫廊。我們擁有一個 15,000 平方英尺的戶外空間，大概有 20,000 平方英尺的現代畫廊，我們可能會在那裡進一步擴展我們的生態系統。

So we've got an option that we could do something or we could monetize assets. So we have a lot of flexibility. Yes, it's not the easiest time to be a real estate development business with interest rates where they are, but you don't get it all right. The timing, do I wish I waited another year or two to buy stock? Did I think the dosing downturn?

因此，我們可以選擇做一些事情，或將資產貨幣化。因此我們具有很大的靈活性。是的，在目前的利率水準下，現在並不是開展房地產開發業務最容易的時期，但你並沒有完全搞清楚。時機問題，我是否希望再等一兩年再買股票？我是否認為劑量會下降？

Is it going to be three years? Yes, I wish it equated to buy the stock and right now that has down tours be three years this it, but then again, when we look back at the assets we have and what we can monetize, and we look at the momentum of the business that we have, we look at the cash flow potential of the business when you think about cycling this time that we spent a lot of capital and it's expensive to build today.

是不是要三年啊？是的，我希望這相當於購買股票，而現在這已經是三年前的了，但是，當我們回顧我們擁有的資產和我們可以貨幣化的資產時，我們看看我們擁有的業務的發展勢頭，當你想到這次循環時，我們看看業務的現金流潛力，我們花費了大量的資金，而今天的建設成本很高。

I made a comment in the letter that I don't think we'll ever see someone build the kind of retail experiences we've built over the last 15, 20 years. They just won't be able to afford to post COVID, the cost of building whatever galleries is almost twice as much. And we've been -- you'll hear more about how we're going to be really created with capital we've designed, I call it, necessity is a mother of invention, right?

我在信中表示，我認為我們永遠不會看到有人打造出我們在過去 15 到 20 年所打造的那種零售體驗。他們根本無力負擔新冠疫情後的費用，建造任何畫廊的成本幾乎是現在的兩倍。我們一直——你會聽到更多關於我們如何利用我們設計的資本進行真正創造的信息，我稱之為，需要是發明之母，對嗎？

And we had some great opportunities for new galleries, but building one of our typical galleries with the restaurant on the top with three stories and a grand staircase and two elevators and all the equipment and so on and so forth is expensive and complex and COVID's made it almost twice expensive. And so that economic model is not as attractive. So we developed a concept that we call the compound, the design compound. And what we did is we took a gallery and we've broken into six to nine separate buildings. And we're getting department store paths in Walnut Creek.

我們有一些開設新畫廊的好機會，但建造一個典型的畫廊，頂層設有餐廳，有三層樓，配有大樓梯、兩部電梯和所有設備等等，既昂貴又復雜，而新冠疫情使其成本幾乎翻了一番。因此，這種經濟模式就沒那麼有吸引力。因此我們發展了一個概念，我們稱之為化合物，設計化合物。我們所做的就是把一個畫廊分成六到九棟獨立的建築。我們在核桃溪建造了百貨公司路徑。

We've got the [Neiman] Marcus pad on the best corner in the East Bay of the entire San (Bay) area in Naples. We get this incredible site in (inaudible) at closed and we've got Aventura in Miami. Again, it was a Bank of America on the street, it's tended in the shop (inaudible) shopping center parking lot and we're going to build with three compounds, and I think we have -- we're hoping that we've got another opportunity with one of our partners that we're doing one of the first ones with development partners, but we think we can disaggregate a gallery, build it for half the cost. And you have all these buildings connected by gardens, you're walking indoors, outdoors, under a little down pathways, you've got outdoor furniture all around.

我們在那不勒斯整個聖（灣）區東灣最好的角落擁有 [Neiman] Marcus 百貨大樓。我們在（聽不清楚）關閉時得到了這個令人難以置信的網站，我們在邁阿密有 Aventura。再說一次，它是街上的一家美國銀行，它在商店（聽不清楚）購物中心停車場，我們打算建造三個院落，我想我們已經——我們希望我們有另一個機會與我們的合作夥伴之一合作，我們正在與開發合作夥伴一起做第一個項目，但我們認為我們可以分解一個畫廊，用一半的成本建造它。所有這些建築物都透過花園連接起來，您可以在室內、室外、小徑下行走，周圍都有戶外家具。

You've got a restaurant in the middle. I think it might be the most exciting thing we've ever done, and we can do it for half the capital. But yes, it's good to have -- I'd like to say humans without deadlines are useless. Like we need deadlines get our work done, we need crisis to kind of figure out our potential. And so I love the fact we always say here necessity is mother of invention, and it's when we do our best work.

中間有一家餐館。我認為這可能是我們做過的最令人興奮的事情，而且我們只需一半的資金就能做到這一點。但是的，有最後期限是件好事──我想說，沒有最後期限的人是沒用的。就像我們需要在最後期限前完成工作一樣，我們也需要危機來發掘我們的潛力。所以我很喜歡我們常說的一句話：需要是發明之母，而我們需要在需要時才能做到最好。

So some of the things we come up with, whether it's the design compounds, the design ecosystems. We said, hey, there's another way to break up the things. Do we have to build the whole thing, or in Greenwich, Connecticut, you're going to see. I think you've been out to our -- where the galleries the store closed office center town, the best location in all of Greenwich. The best building for retail and especially what we did to it.

因此，我們提出的一些東西，無論是設計化合物，還是設計生態系統。我們說，嘿，還有另一種方法可以解決這些問題。我們是否必須建造整個項目，或者在康涅狄格州格林威治建造，你會看到。我想你已經去過我們的——那裡有畫廊、商店、封閉式辦公中心鎮，是整個格林威治最好的位置。最好的零售建築，尤其是我們對它的改造。

The next best building was the Ralph Lauren building. They got built a little after us, right, or right before us, maybe right before us. And Ralph's downsizing, I think three, four, five years ago when they closed some of their stores. No one was able to really operationalize that building very well. We were able to get in and get that building.

排名第二的建築是拉爾夫·勞倫大廈。它們是在我們之後不久建造的，對吧，或者就在我們之前，也許就在我們之前。拉爾夫 (Ralph) 的規模縮小了，我想大概是在三、四、五年前，當時他們關閉了一些商店。沒有人能夠真正地運作那棟建築。我們能夠進入並佔領那棟建築。

And so we tied up a lease on that building. That will be ability to support the new concept that we're opening. We also transformed our [big trial] gallery into an RH Outdoor gallery because outdoor is a very important business to us long term strategically.

因此，我們簽訂了那棟建築的租賃協議。這將成為支持我們正在開啟的新概念的能力。我們也將我們的[大試驗]畫廊改造成了 RH 戶外畫廊，因為從長期策略角度來看，戶外業務對我們來說是一項非常重要的業務。

And so we will have three incredible locations and we call that a design ecosystem. We'll see another design ecosystem in Tom Desert. And some of these -- what it allows us to do is move much more quickly with less capital, right? because we're taking buildings and modifying them a bit, I think we're going to have a restaurant in the Ralph Lauren building there, right? I call the out.

因此，我們將擁有三個令人難以置信的地點，我們稱之為設計生態系統。我們將在湯姆沙漠看到另一個設計生態系統。其中的一些——它使我們能夠用更少的資金更快地發展，對嗎？因為我們正在對這些建築進行一些改造，我想我們會在那裡的拉爾夫勞倫大樓裡開一家餐廳，對嗎？我喊出出局。

I can't call it what our concept is because I haven't told you what our concept is or I call it the RH is building -- you have a vision.

我不能稱之為我們的概念，因為我還沒有告訴你我們的概念是什麼，或者我稱之為 RH 正在構建——你有一個願景。

Like what would you put in a building that looks like that. Anyway, Eri's shaking her head. I shouldn't do this. But we're going to have an RH all-day cafe in there, it could be super cool. And I think what are we going to spend like $0.5 million of capital?

例如，你會在這樣的建築物裡放什麼東西呢？不管怎樣，Eri 搖了搖頭。我不應該這麼做。但我們將在那裡開設一家 RH 全天咖啡館，這可能會非常酷。我認為我們要花費 50 萬美元的資金嗎？

Like $2.5 million of capital, like rest is like a free store. And yes, we've just got lots of creative ways to grow and opportunities. I mean just like in Europe, we've got some very expensive real estate we built in Europe. And by next year, that capital kind of gets behind us and start doing a lot of great cash flow, but we've also had things at the other galleries that we picked up, we didn't spend that much capital in. We're very creative with it.

就像 250 萬美元的資本一樣，其餘的就像一個免費的商店。是的，我們確實有很多創意的成長方式和機會。我的意思是，就像在歐洲一樣，我們在歐洲建造了一些非常昂貴的房地產。到明年，這些資金就會支持我們並開始產生大量的現金流，但我們在其他畫廊也有一些作品，我們並沒有投入那麼多資金。我們對此非常有創意。

And it's one of the things as you think about just the model and the cash flow, just how we can deploy the brand into markets.

當你考慮模型和現金流時，這就是我們如何將品牌部署到市場中。

I think I mentioned about (inaudible), we opened our first RH freestanding interior design studio. It's really an office. It has two sitting rooms like outside of the offices where we got the same cell twice, that's like a little kind of pool sofa. It doesn't even have our coffee take, right? It's got a (inaudible) and tie, like reproduction (inaudible) thing that the (inaudible) level is (inaudible) and we buy things like that, that we can actually aspire to (inaudible) those.

我想我有提到（聽不清楚），我們開了第一家 RH 獨立室內設計工作室。這確實是一個辦公室。它有兩個起居室，就像辦公室外面一樣，我們兩次住在同一間牢房裡，就像一種小型泳池沙發。它甚至沒有我們的咖啡，對嗎？它有一個（聽不清楚）和聯繫，例如複製（聽不清楚）的東西，（聽不清楚）水平是（聽不清楚）並且我們購買這樣的東西，我們實際上可以渴望（聽不清楚）那些。

It's the people ask about them. But it's just a design office with a little room in the front, and it's -- can I say how much is doing? I can't say how much is doing, right? It's doing -- it's 3,000 feet, it's doing $1 million a month. And the design clients we're getting there because it's just a beautiful space and we try to replace Lulumelon there, I don't think Lulumeon is doing 12 million a year on 3,000 feet. And that's this week, warm it up and stuff. So we've just got a lot of ways to access markets.

是人們對他們提出詢問。但它只是一個設計辦公室，前面有一小間房間，而且——我能說一下它做了多少嗎？我說不出來做了多少，對吧？它的高度為 3,000 英尺，每月的收益為 100 萬美元。我們在那裡吸引設計客戶是因為那裡是一個美麗的地方，我們試圖在那裡取代 Lulumelon，我不認為 Lulumeon 能在 3,000 英尺的面積上每年賺 1200 萬美元。這就是本週的內容，熱身一下。因此，我們有很多方法可以進入市場。

We've got, as I said, the design content, the design ecosystem, the design studios. We have the design concept stores where -- it's kind of a -- where we can, again, go into an existing building, do an RH that's anywhere from 14,000 to 30,000 feet would earn a lot less capital, and we have a lot of those in the pipeline that's allowing us to access markets much more quickly. And that's what we communicated in the letter that we're going to accelerate our openings to seven to nine a year. And so we feel good, and we think we can do it in a very capital efficient way.

正如我所說，我們擁有設計內容、設計生態系統和設計工作室。我們有設計概念店，我們可以進入現有的建築物，做一個從 14,000 到 30,000 英尺的 RH，這樣可以賺到少得多的資本，而且我們有很多這樣的商店正在籌備中，這使我們能夠更快地進入市場。我們在信中傳達的訊息是，我們將把開業數量增加到每年七到九家。因此我們感覺很好，我們認為我們可以以一種非常資本高效的方式來做到這一點。

Simeon Guttman, Morgan Stanley.

摩根士丹利的西緬古特曼。

So Gary, a bunch of tactical pivots all sound pretty good. I wanted to ask about the sale. I saw -- you said it was limited time. Can you assess anything about the underlying newness with the sale, meaning, have you seen demand spike up? Is there still a way to assess what the underlying strength of these newness is doing to the business even with the sale? And then how do you kind of ease off of it?

所以加里，一系列戰術支點聽起來都很棒。我想詢問一下銷售情況。我明白了—您說過時間是有限的。您能否評估一下此次銷售的潛在新鮮感，也就是說，您是否看到需求激增？即使在出售的情況下，是否還有辦法評估這些新事物的潛在力量對業務的影響？那麼你要怎麼緩解這種壓力呢？

Yes. Well, we just increased the value to our members, right, for how many weeks? Five weeks. Yes. And then really what we -- we've been thinking about taking membership from 25% to 30% I don't know, for five years.

是的。好吧，我們只是增加了會員的價值，對吧，持續多少週？五週。是的。然後我們真正想做的是——我們一直在考慮將會員率從 25% 提高到 30%，我不知道，五年了。

It's not a new idea for us. It's a long-term strategic move because we live in a really promotional world and we're a market leader and other people try to do things (inaudible) start with nobody sells furniture at regular price anywhere in the world all furnitures on sales basically. And it's just a fail industry. It even starts at the highest end with interior designers.

對我們來說這並不是什麼新想法。這是一項長期策略舉措，因為我們生活在一個真正的促銷世界，我們是市場領導者，其他人試圖做的事情（聽不清楚）從沒有人以正常價格在世界任何地方銷售家具開始，基本上所有家具都在銷售。這只是一個失敗的行業。它甚至從最高端的室內設計師開始。

Every interior designer gets 20% to 40% off. Most of them get 30% to 40% of the designed showrooms. And then more of the other people in our industry try to figure out like what can we do. One time we had a competitor that put their entire assortment on sale, it's 30% off and they were running their business that way until I think they found out the government doesn't let you do that.

每位室內設計師均可享 20% 至 40% 的折扣。其中大部分獲得設計展廳的30%至40%。然後我們行業中的更多其他人開始嘗試弄清楚我們能做什麼。有一次，我們的一個競爭對手把他們的全部商品都打折出售，折扣高達 30%，他們一直以這種方式經營，直到我認為他們發現政府不允許這樣做。

And so -- but they were just trying to say, hey, you don't have to -- you can buy something similar here because you have to given pay RH $200 for a membership, then here, we'll give you 30% off, but it wasn't really 30% off, it's markup the goods and we just always thought at the trade level, the discount is more 30% to 40%. And we just think that will open up the market feels more compelling.

所以——但他們只是想說，嘿，你不必——你可以在這裡買到類似的東西，因為你必須向 RH 支付 200 美元的會員費，然後在這裡，我們會給你 30% 的折扣，但實際上並不是 30% 的折扣，而是商品的加價，我們一直認為在貿易層面，折扣應該在 30% 到 40% 之間。我們只是認為，開放市場將會更有吸引力。

So I don't really -- and look, if we did it during a difficult market like this, you're going to do something like this, you might as well do it now because people are really sensitive. We made a move on outdoor furniture for the next number of weeks and picked up significant business. And it was important that more important there, like when we went to 35 is outdoor has a peak and it's a short peak, it's an all -- we sell outdoor all year round, but you have a massive fee in the outdoor business in March, April, May, June period, and we wanted to just capture more market share during that time.

所以我真的不——你看，如果我們在像這樣困難的市場中這樣做，你會做這樣的事情，你最好現在就這樣做，因為人們真的很敏感。我們在接下來的幾週內開始進入戶外家具市場，並獲得了大量業務。更重要的是，當我們達到 35 歲時，戶外用品銷售達到一個高峰，而且是一個短暫的高峰，我們全年銷售戶外用品，但在三月、四月、五月、六月期間，戶外用品業務的費用會非常高，我們只想在那段時間佔領更多的市場份額。

And that business got a little rock like -- everywhere got rock from kind of the recyclical tariff announcements when the market went down, our business went down, you had a pull forward, you had to give back is like a noisy time right now to run your business. It's not a simple time.

當市場下滑時，我們的業務就受到了一些衝擊——由於週期性關稅公告的影響，各地都受到了衝擊，你必須向前拉，你必須回饋，就像現在經營業務的喧鬧時期一樣。這不是一個簡單的時刻。

I don't know how anybody keeps up with the news of what's happening in tariffs, what's happening with Israel or this or that's like it's just noise all over the place. And I think it's -- and you're sitting there with the down housing market for the third year. I don't know if anybody even knows to go back in history, went the last time that's happened if it's ever happened -- it hasn't happened in my career as long as I have been 40 years in this industry, I haven't seen it.

我不知道人們是如何關注關稅、以色列局勢或其他方面的新聞的，這些都只是到處都是的噪音。我認為——房地產市場已經連續第三年低迷了。我不知道是否有人知道回顧歷史，看看上次發生這種事的時候，如果真的發生過的話——在我的職業生涯中，這種事從來沒有發生過，我已經在這個行業工作了 40 年，我從來沒有見過它。

So this isn't a normal time. But the 25 to 30 is a strategic thing. We've been thinking about it for five years, debated back and forth, and we said, hey, look, we ought to do it now, why not take the market share now. And outdoor is a kind of a onetime thing. Will we anniversary that next year? I don't know. Maybe, maybe not.

所以這不是正常時期。但 25 到 30 是一個戰略問題。我們思考了五年，反覆辯論，最後我們說，嘿，看，我們現在就應該這麼做，為什麼不現在就佔領市場份額。而戶外是一種一次性的事。明年我們會紀念這個日子嗎？我不知道。或許是，或許不是。

And as a quick follow-up, the path back to the 20%-plus or EBITDA margins, does this compromise -- do you think I know it's -- you sound like you're confident that it won't, but how do you get confident in that, that you're not harming the brand in any way by offering this type of discount even for a short period of time.

作為一個快速的後續問題，回到 20% 以上的 EBITDA 利潤率，這是否會妥協——你認為我知道嗎——你聽起來很有信心不會，但你如何確信這一點，你不會通過提供這種折扣以任何方式損害品牌，即使是在短時間內。

You mean the 35% off for like five weeks and outdoor or less?

您的意思是五週或更短時間的戶外 35% 折扣嗎？

3.5 weeks.

3.5週。

Just so you mean the 30% is a strategic move. It's not temporary, and our cash -- and our guidance.

所以你的意思是 30% 是一個策略性舉措。這不是暫時的，我們的現金——以及我們的指導。

The 30% off membership is forever.

30% 的會員資格折扣是永久的。

And our guidance is 20% to 21%. (inaudible)

我們的預期是 20% 到 21%。（聽不清楚）

Steven Zaccone, Citi.

花旗銀行的史蒂文‧扎科內 (Steven Zaccone)。

This is Ian Morten on for Steve. So my first question is, what gives you the confidence in the second half sales improvement? Is it just a function of timing of deliveries between second and third quarter? Or is there some risk that demand just out to 2026.

我是伊恩‧莫滕 (Ian Morten)，代替史蒂夫。所以我的第一個問題是，是什麼讓您對下半年的銷售成長有信心？這僅僅是第二季和第三季之間交付時間的函數嗎？或者說，到 2026 年，需求是否有一定風險？

What's the question? And what gives us the confidence for the second half implied sales plan. I don't know, this is what we do for a living. We're generally more right than wrong. I mean, there's a lot of factors.

問題是什麼？是什麼讓我們對下半年隱含銷售計畫充滿信心？我不知道，這就是我們的謀生手段。我們通常正確的次數多於錯誤的次數。我的意思是，有很多因素。

It takes me too long to explain all of it, but I mean, our current performance, what we have in the pipeline, the number of new galleries were opening. I mean there's a whole built-up model of pieces that says, this is what it looks like. But we are in the most unpredictable market I've ever seen. So we're more confident than less confident.

我需要很長時間才能解釋清楚，但我的意思是，我們目前的表現，我們正在籌備的事情，以及正在開業的新畫廊的數量。我的意思是，有一個由各個部件組成的完整模型，可以告訴我們它看起來是什麼樣的。但我們正處於我所見過的最難以預測的市場。因此，我們的信心是比較足的。

Got it. And my follow-up is, how did product margin perform in the quarter? The last few quarters, you spoke to sequential improvement. So what's your updated view on product margin for the full year?

知道了。我的後續問題是，本季產品利潤率表現如何？過去幾個季度，您談到了連續的改善。那麼您對全年產品利潤率的最新看法是什麼？

So our core business product margins were up year-over-year. Some of the other businesses were down slightly year-over-year, and you can see that just mentioned in our MD&A. But I think the most important is our core --

因此，我們的核心業務產品利潤率較去年同期成長。其他一些業務同比略有下降，你可以在我們的 MD&A 中看到這一點。但我認為最重要的是我們的核心--

Core business margins.

核心業務利潤率。

Year over year.

年復一年。

Yes, year over year. And we expect it to be up year over year for the rest of the year.

是的，年復一年。我們預計今年剩餘時間內該數字將年增。

We don't comment on the quarter-over-quarter margin trend, but I think it's important to look at the commentary about that year-over-year.

我們不評論季度環比利潤趨勢，但我認為查看同比趨勢的評論很重要。

Michael Lasser, UBS.

瑞銀集團的麥可拉瑟。

You came into the year with the EBITDA margin guidance in the 20% to 21%, it sounds like the decision to increase the discount for members was made more recently. So what is the offset that is allowing you to offer a greater discount and yet still keep the same profitability for the rest of the year, even as it does seem like sales have proven to be a bit more volatile than what you had originally expected.

您今年的 EBITDA 利潤率預期為 20% 至 21%，聽起來增加會員折扣的決定是最近做出的。那麼，什麼樣的補償措施可以讓您提供更大的折扣，同時仍能在今年剩餘時間內保持相同的盈利能力，即使銷售額似乎比您最初預期的要不穩定一些。

Yes. Mike, like I said, we've been thinking about this for five years. So we decided to do it now because it seems like a strategically good time to do it. And we always have a lot of optionality and a lot of things we're thinking about strategically based on the market, the competitive market, what's happening, like so yes, so just -- we thought it was a good time to do it for all the reasons I've kind of said to take market share -- to read the letter to kind of play offense, right, and take market share. And have the margin structure to be able to do things.

是的。麥克，就像我說的，我們已經考慮這個問題五年了。因此我們決定現在就這麼做，因為從戰略上來說現在似乎是一個好時機。我們總是有很多選擇，而且我們根據市場、競爭市場和正在發生的事情進行戰略思考，所以是的，所以只是——我們認為現在是做這件事的好時機，因為我說過要佔領市場份額——讀這封信是為了進攻，對，佔領市場份額。並擁有能夠做事的利潤結構。

So we're always tweaking our model and looking at ways to build a better brand, build a better business model and so on and so forth. So our state that this should work well.

因此，我們一直在調整我們的模型，尋找方法來建立更好的品牌、建立更好的商業模式等等。因此我們認為這應該會很好運作。

I guess my question, Gary, was are you -- have you taken up some prices to compensate or offset for the increased discounts such that your profitability is where you thought it would be?

加里，我想我的問題是——你是否已經採取了一些價格來補償或抵消增加的折扣，以使你的盈利能力達到你所認為的水平？

Yes. Look, we generally will take a price change at the beginning of the year, every year. And I don't think there's many times that we haven't -- and then we're reacting to tariffs appropriately. But we are coming out with some pretty big margin flexibility.

是的。你看，我們通常每年年初都會調整價格。我認為我們經常會這樣做——然後我們對關稅做出適當的反應。但我們推出了相當大的利潤彈性。

Just if you look at kind of our more recent trends as we're coming into this year, where the new product was -- margins were where we've negotiated bigger bets and better pricing and so on and so forth. And so we -- and we think our offer is -- yes, it's really distinctive.

只要你看一下我們今年的最新趨勢，就會發現新產品的利潤率是我們協商的更大賭注、更好的定價等等。因此，我們認為我們提供的服務是——是的，它確實與眾不同。

And the environment that we sell the goods are is distinctive. The brand is -- I think everything that we do, the galleries, the restaurants, the design services. All these elements render the product much more valuable. Our source books render the product more valuable. And as you build a brand and the brand becomes more desired and more distinctive, you have more flexibility I mean, people will pay more for better things.

而我們銷售商品的環境也是獨一無二的。品牌是——我認為我們所做的一切，畫廊、餐廳、設計服務。所有這些因素使得產品更有價值。我們的資料書使產品更有價值。當你建立一個品牌，而品牌變得更受歡迎、更獨特時，你就擁有了更大的靈活性，我的意思是，人們願意為更好的東西支付更多的錢。

Yes. And so I mean, we've been doing this like the whole time, right? Like we're selling any less categories, much higher-quality product at higher prices, and we have fewer customers doing more volume, and we have much more leverage in that model. And so yes, we've been building and tweaking this model for 25 years.

是的。所以我的意思是，我們一直都是這樣做的，對吧？例如，我們銷售的產品種類更少，品質更高，價格更高，客戶更少，銷售量更大，在這種模式下，我們擁有更大的槓桿作用。是的，我們已經建立和調整這個模型 25 年了。

It's what you do. I got you. My quick follow-up question is on the six-point deferral of revenue from the second quarter into the back half of the year. Is that demand already been realized -- and you simply will deliver the product later on, okay. I mean given that, can you give us a sense for how brand has trended (inaudible).

這就是你所做的。我接到你了。我的後續問題是關於從第二季到下半年的六點收入延期。這個需求是否已經實現了——你稍後只需交付產品，好的。我的意思是，考慮到這一點，你能告訴我們品牌的趨勢如何嗎？（聽不清楚）。

For that to happen, Michael, the demand was much higher than the revenues, okay? But what happened when the reciprocal tariffs hit, we stopped shipments, people stopped producing things, the manufacturers stopped, yes -- like I mean, it created disruption for several weeks in the supply chain. And when you try to ramp back up quickly in a chaotic time like that, things are just things are late, things get backed up. You stop the factory for a week or it gets back up. And then you got to catch up.

邁克爾，要實現這一點，需求量必須遠高於收入，懂嗎？但是當互惠關稅來襲時，我們停止了發貨，人們停止了生產，製造商停止了生產，是的——我的意思是，這導致供應鏈中斷了數週。當你試圖在那樣混亂的時期迅速恢復時，事情就會延誤，事情就會被耽擱。你可以讓工廠停工一周，或讓它恢復生產。然後你就得趕上來。

And so you're just going to have a deferral kind of a lag of shipments and a deferral. So that yes, this is a big one. You don't usually only have things like this that demand is really up there like 30% or 20% like when we were running some really high numbers earlier, and we said, hey, we're going to have a four- to think, eight-point lag during a certain period.

因此，您只會遇到發貨延遲和延期的情況。是的，這是一個大問題。通常情況下，我們不會只遇到這樣的情況：需求真的會高達 30% 或 20%，就像我們之前運行一些非常高的數字時那樣，我們說，嘿，在一定時期內，我們將會有 4 到 8 個百分點的滯後。

But this was a disruption lag. I wouldn't be surprised if other people -- because people haven't reported that period yet have the other retailers? Are we the first to report --?

但這是一種中斷滯後。如果其他人——因為人們還沒有報告那個時期，那麼我不會感到驚訝，還有其他零售商嗎？我們是第一個報告--？

Q1 or the last Q2, obviously, what we're guiding. Some of that's in there. Yes.

顯然，第一季或最後的第二季就是我們所引導的。其中有一些就在那裡。是的。

Yes, yes. So I think you're going to see this in a lot of places that sold furniture and stuff because when all a sudden, you get 45% tariffs, 35% tariffs, 100-something percent tariffs, you don't just go, oh yes, business is normal, business as usual, keep on shipping. I mean we're like, hey, stop the shipment. The manufacturers don't know what to do. They're like, hey, can I ship this?

是的，是的。所以我認為你會在很多銷售家具和其他物品的地方看到這種情況，因為當突然間你被徵收 45% 的關稅、35% 的關稅、100% 左右的關稅時，你不會只是說，哦是的，生意正常，一切照舊，繼續運輸。我的意思是，嘿，停止發貨。製造商不知道該怎麼辦。他們說，嘿，我可以運送這個嗎？

It's going to cost a lot more. That was a shocking thing that happened, Liberation Day for business. Yes. I mean, we're lucky we're a big business. I mean it's devastating for small businesses and that don't have flexibility.

這將花費更多。那是一件令人震驚的事情，這是商業解放日。是的。我的意思是，我們很幸運我們是一家大企業。我的意思是，這對缺乏靈活性的小型企業來說是毀滅性的。

So yes, yes, you're going to have things like this. I mean, I'd be surprised if other people in the furniture business that have like special order, things like that, that that's all going to get hung up and some of your other goods, you're going to get hung up, right, back orders and so.

所以是的，是的，你會遇到這樣的事情。我的意思是，如果家具業的其他人有特殊訂單之類的事情，而這些事情都將被擱置，而你的其他一些商品也會被擱置，對吧，積壓訂單等等，我會感到驚訝。

Max Rakhlenko, TD Cowen.

馬克斯·拉赫倫科 (Max Rakhlenko)，TD Cowen。

So first, how much of the inventory did you work through in 1Q. And given that your 1Q free cash flow generation was sort of in the mid-$30 million range, can you just help us bridge the gap to the full-year guide?

那麼首先，您在第一季處理了多少庫存？鑑於您第一季的自由現金流約為 3,000 萬美元左右，您能否幫助我們彌補與全年指南的差距？

Well, I don't think inventory wasn't down year-over-year. Was it?

嗯，我認為庫存並沒有同比下降。是嗎？

But I think importantly, Max sequentially, inventory was down just slightly from $1.20 billion to $1.8 billion, so down [$12 million]. So making a little bit of progress, but really that's implied.

但我認為重要的是，Max 的庫存環比略有下降，從 12 億美元降至 18 億美元，因此[1200萬美元]。因此取得了一點進展，但實際上這只是暗示。

Yes, the bigger move will be in the second half of the year as we keep going. Yes. So that ability to meaningfully reduce inventory this year and next year.

是的，隨著我們繼續前進，更大的舉措將在下半年出現。是的。這樣就能在今年和明年大幅減少庫存。

Got it. Okay. And then switching gears. You guys have an incremental -- it looks in the 10-Q to be about $308 million available on the ABL. So just given this level and your goal to generate free cash flow, can you discuss whether or not you think you may need to raise capital or opportunistically will to raise capital to shore up the balance sheet?

知道了。好的。然後換檔。你們有一個增量——在 10-Q 中看起來 ABL 上可用的資金約為 3.08 億美元。因此，僅鑑於這一水平以及您產生自由現金流的目標，您能否討論一下您是否認為您可能需要籌集資金或機會性地籌集資金以支撐資產負債表？

No. But I mean would we raise capital opportunistically, maybe, not at this stock price. I mean, we're kind of famous for doing zero coupon convertibles. I mean probably missed the window at 450. We should have done one.

不。但我的意思是，我們是否會趁機籌集資金，也許，不會以這個股價籌集資金。我的意思是，我們以做零息可轉換債券而聞名。我的意思是可能錯過了 450 的視窗。我們應該做一次。

And I mean, the great thing is we've got a highly volatile stock, so we can monetize the volatility and raise capital in the convertible markets pretty easily, but not where the stock is today. If it goes up to a much higher price, would we think about it? Of course, we would. And because it would lower interest rates than -- yes, but there's nothing we're not doing that we want to do right now.

我的意思是，最棒的是，我們擁有一隻波動性很大的股票，因此我們可以輕鬆地將波動性貨幣化並在可轉換市場上籌集資金，但不能達到股票目前的水平。如果價格上漲到更高的水平，我們會考慮嗎？當然會。因為它會降低利率——是的，但是我們現在想做的事情我們都會做。

I mean if you look at what we're doing and the amount of activity that's happening here, yes, we're opening maybe the most beautiful and magnificent retail stores that has ever been ever opened anywhere in the world. Like there's nothing like them in Europe, there's nothing like in the States. Big investments, the whole Europe piece, yes, we've made big real estate moves here really important galleries here. We've got a pipeline full of galleries here. We're launching new concepts that we're opening with three physical locations.

我的意思是，如果你看看我們正在做的事情以及這裡發生的活動數量，是的，我們正在開設可能是世界上有史以來最美麗、最宏偉的零售店。就像歐洲沒有類似的東西，美國也沒有類似的東西。大筆投資，整個歐洲部分，是的，我們在這裡進行了大規模的房地產投資，在這裡建立了非常重要的畫廊。我們這裡有大量的畫廊。我們正在推出新概念，並在三家實體店開設。

That kind of means we're excited about that concept and we're -- I think we just went through the biggest product transformation anywhere. We built a restaurant company. I don't think anybody realizes that. Like how many restaurants do you have that? 22 restaurants we're opening how many -- what we have in the pipeline this year? We've got two in Paris. I think we're going to have 30 restaurants very soon here.

這意味著我們對這個概念感到興奮，我認為我們剛剛經歷了最大的產品轉型。我們成立了一家餐飲公司。我認為沒有人意識到這一點。例如你們有多少家餐廳有這樣的餐廳？22 家餐廳，我們今年準備開多少家？我們在巴黎有兩個。我認為我們很快就會在這裡擁有 30 家餐廳。

I mean a restaurant company how many retailers have a restaurant company that have -- that really actually people go to and they do volume. I don't know if anybody saw it, but we just got named restaurant in the year in Orange County, the RH (inaudible) growth. I mean we built Newport Beach, forgot to say, that wasn't cheap. But no one will ever build anything like that. Again, we have a 270-seat restaurant that is trending right now at $22 million, and we're not feeding the whole thing quite yet as we're building up the capability and team.

我的意思是，有多少零售商擁有一家餐飲公司，實際上人們確實會去那裡，而且他們的生意量很大。我不知道是否有人看到了，但我們剛剛被評為奧蘭治縣年度最佳餐廳，RH（聽不清楚）增長。我的意思是我們建造了紐波特海灘，我忘了說，這並不便宜。但沒有人會建造這樣的東西。再說一次，我們有一家擁有 270 個座位的餐廳，目前售價為 2200 萬美元，我們目前還不能滿足所有顧客的需求，因為我們正在建立能力和團隊。

So that gallery is trending the gallery and restaurant would be our second $100 million galleries. I mean we just (inaudible) it. So I mean like we're doing everything we want to do.

因此，該畫廊正在成為一種趨勢，畫廊和餐廳將成為我們的第二個價值 1 億美元的畫廊。我的意思是我們只是（聽不清楚）它。所以我的意思是我們正在做我們想做的一切。

Andrew Carter, Stifel.

安德魯卡特（Stifel）。

First question is on the disruption. Of course, liberation Day was in the last month of your quarter. Was there any headwind in the quarter?

第一個問題是關於中斷的。當然，解放日是在本季的最後一個月。本季是否遇到了什麼不利因素？

And then kind of a second question, if you've got 6 points coming out of 2Q and that means demand should be 14% to 16%. And if it's 3 points, therefore, coming in the back, overall, that comes back. That means demand slows to 7% to 12%. Can you give us anything on the exit rate in June or why you have that kind of slowing in the second half here?

然後是第二個問題，如果第二季的成長率為 6%，這意味著需求應該是 14% 到 16%。因此，如果落後 3 分，那麼總體來說，就會回來。這意味著需求放緩至7%至12%。您能否告訴我們 6 月的退出率情況，或者為什麼下半年會出現這種放緩？

Yes, that's not what our numbers look like. I don't --

是的，我們的數字並不是這樣的。我不--

Yes, Andrew, I mean you're asking a lot of detail actually on a monthly level. And I think you know us well enough to know that we don't get into those kind of details unless there's a purpose to do that. I think our guidance speaks for itself and our confidence in the business. And there's obviously a level of as we've said before, there's naturally a level of -- there's our internal plan and then there's what we communicate externally and those aren't -- there's something between us.

是的，安德魯，我的意思是你實際上詢問的是每月的許多細節。我想你對我們夠了解，知道我們不會談論這些細節，除非有目的。我認為我們的指導是不言而喻的，並且表明了我們對業務的信心。顯然，正如我們之前所說，存在著一定程度的差異——有我們的內部計劃，也有我們對外溝通的內容，而這些並不是——我們之間存在著某種差異。

I had to try. I guess second question I'd ask is then kind of in this environment right now, are you seeing a lot of like incremental traction on to the trade business? I mean the (inaudible) -- the trade guys out there things are being canceled. The start -- the policies really don't help, it's starting and stopping. Are you seeing like a lot of incremental traction or not really?

我必須嘗試一下。我想問的第二個問題是，在目前的環境下，您是否看到貿易業務有很大的增量牽引力？我的意思是（聽不清楚）——那裡的貿易商的事情被取消了。開始——這些政策確實沒有幫助，只是開始和停止而已。您是否看到了很多增量牽引力？還是實際上沒有？

We have a very strong trade business. We have trade teams in every gallery. We have interior design teams, and we have trade teams the trade team service the exterior -- the external interior designers. And our business is strong.

我們的貿易業務非常強大。每個畫廊都有我們的貿易團隊。我們有室內設計團隊，也有貿易團隊，貿易團隊為外部提供服務—外部室內設計師。我們的業務很強勁。

Marius Morar, Zelman.

馬呂斯·莫拉爾，澤爾曼。

Just a quick one on outdoor. You mentioned some slowdown. I was just curious, it seems like it was pronounced in some of the other product categories. And I was just wondering why that is? Is there something about out store or something else that might have driven it?

只是在戶外快速地做一下。您提到了一些放緩。我只是好奇，它似乎在其他一些產品類別中被發音。我只是想知道這是為什麼？是否與我們的商店或其他因素有關，可能導致了這種情況？

I think it's the timing. The outdoor season is relatively short season, if you miss that season, the peak of that season, that's hard to make up. And so that during the disruption and around the tariffs and all the noise that was disrupting a business that you only got so many weeks, right? You can't make up the peak months in the out months. So again, we just thought it was the right thing to do.

我認為時機已到。戶外季節相對較短，如果錯過了那個季節，錯過了那個季節的高峰，那就很難彌補了。因此，在混亂和關稅以及所有擾亂業務的噪音期間，你只有這麼多週的時間，對嗎？你無法在非高峰月份彌補高峰月份的損失。所以，我們再次認為這是正確的做法。

It was an unusual situation that happened with the tariffs and everything else. And we're an unusual world. So you -- in an unusual world, you should do some unusual things as if you try to do the usual things in an unusual world, it's how you fall behind. So I mean, we think very deeply about what we do. We think really hard about what we do and we usually make decisions that are very strategic and long term in nature.

這是與關稅和其他所有問題有關的不尋常情況。我們是一個不尋常的世界。所以你——在一個不尋常的世界裡，你應該做一些不尋常的事情，如果你試圖在一個不尋常的世界裡做平常的事情，你就會落後。所以我的意思是，我們會非常深入地思考我們所做的事情。我們認真思考我們所做的事情，並且通常做出非常具有策略性和長期性的決定。

But there's times like in an outdoor season, where you're going to make a tactical decision because the math says it's a much better thing to have those sales at a slightly lower margin. So yes, just day-to-day business goals.

但有時，例如在戶外季節，你會做出戰術決策，因為數學表明，以略低的利潤率實現銷售是更好的選擇。是的，只是日常的業務目標。

If we're in a messy time very unpredictable times. Yes, things -- you've got to be flexible in times like this if you want to win and take share and position yourself for the other side. I mean there's a lot of people going bankrupt. A lot of the ankle biter businesses, the little online things that they can't raise capital. Their business are -- a lot of them are blowing up, they're going away.

如果我們處在一個混亂且難以預測的時期。是的，如果你想要贏得勝利、獲得份額、為對方做好準備，那麼在這種時候你就必須靈活變通。我的意思是有很多人破產了。很多規模較小的企業，例如網路上的小企業，都無法籌措資金。他們的生意——很多都破產了，消失了。

Yes, the other businesses that I think don't make it through the rest of this year. They don't have the scale to deal with the tariffs. They don't have the leverage, they don't have the strategic flexibility. So you want to position yourself for the other side.

是的，我認為其他企業無法撐過今年剩餘的時間。他們的規模不足以應付關稅。他們沒有影響力，也沒有戰略彈性。所以你要為對方做好準備。

The other side is where all the upside is. So if you're in a position like we have been and get -- it's not free, we're paying interest on the debt and that wasn't by choice, I mean we knew we were going to pay some interest, if we had no interest rates, we're going to rise the fastest in history.

另一面才是所有好處所在。所以如果你處於像我們這樣的境地——它不是免費的，我們要支付債務利息，這不是我們選擇的，我的意思是我們知道我們會支付一些利息，如果我們沒有利率，我們將會以歷史上最快的速度增長。

Got it. we're not -- we don't have a crystal ball. We can't see things like that neither can anybody else. But I wouldn't get too hung up on -- we took outdoor to 35% per X number of weeks during a extraordinary political and products turmoil around the world.

明白了。我們沒有──我們沒有水晶球。我們看不到這樣的事情，其他人也看不到。但我不會太糾結——在全球發生異常政治和產品動盪期間，我們每 X 週將戶外廣告的投放量提高到 35%。

Like do you think Apple is doing anything different? Apple's flying jets of iPhones to the US, the tariffs, Apple's opening factories in India, like everybody's got problems right now. Tesla has got problems, not just because of lines being involved in the government, it's a different world. Lots of things are changing.

您認為蘋果在做什麼不同的事情嗎？蘋果公司向美國運送 iPhone、徵收關稅、在印度開設工廠，就像現在每個人一樣，都遇到了問題。特斯拉遇到了問題，不僅是因為生產線涉及政府，這是一個不同的世界。很多事情正在改變。

You have to improvise, adapt and overcome. So changes aren't always bad. I read a lot of analyst reports like, oh, God, they did this. So I'm like holy cow, get out of the lease, look at the big picture. Are we heading in the right direction? Are we more right than wrong?

你必須隨機應變、適應並克服困難。所以改變並不總是壞事。我讀了很多分析師報告，他們都說，天哪，他們真的這麼做了。所以我就像天哪，擺脫租約，看看大局。我們正朝著正確的方向前進嗎？我們的正確之處是否多於錯誤之處？

Is anybody building a platform like us, if anybody has the product assortment that we do, does anybody have a restaurant concept that drives the kind of energy and engagement that we do, that is a profit center driving traffic.

是否有人像我們一樣建立平台，是否有人擁有我們這樣的產品組合，是否有人擁有能夠推動我們這樣的能量和參與度的餐廳理念，這是一個推動流量的利潤中心。

Anybody have our interior design business, I think we're the largest residential interior design firm in the world today. We've built really important foundational things here that I just don't think anybody sees it yet what's going to happen over the next 10 years. They don't can't -- because the investments don't look like anybody else. No one's ever done it. So I think people are afraid of it sometimes.

任何人都有我們的室內設計業務，我認為我們是當今世界上最大的住宅室內設計公司。我們在這裡建立了非常重要的基礎事物，但我認為沒有人能夠預見未來 10 年會發生什麼。他們做不到——因為這些投資看起來與其他投資不同。從來沒有人做過這件事。所以我認為人們有時會害怕它。

Oh God, look what they're building. Oh man, they're spending a lot of money.

噢天哪，看看他們在建造什麼。天哪，他們花了很多錢。

So okay. We are making a lot of money in a s***** housing market. I'm going to go national in that too. I said that word again. I could say, oh, this, but I did that be helpful.

好吧。我們在糟糕的房地產市場中賺了很多錢。我也將以此走向全國。我又說了那句話。我可以說，哦，這個，但是我這樣做是有幫助的。

On the contract and hospitality business, you called out in the letter. Just curious, internationally, how is the adoption there? And is that something that's in line with the design business or the general retail business? Or is it following it? Is it living it? Any insight there would be helpful.

關於合約和接待業務，您在信中提到了這一點。只是好奇，在國際上，那裡的採用情況如何？這是否與設計業務或一般零售業務一致？還是它正在遵循它？這是活著嗎？任何見解都會有幫助。

We've been in that business for 20 years.

我們從事這個行業已經 20 年了。

No, internationally, I mean, in Europe.

不，我是說國際上，在歐洲。

Contract fee, we've been selling internationally in the Contract division for many years.

合約費，我們合約部門已在國際上銷售多年。

I think, 15 or 20 years.

我認為是15年或20年。

Yes probably. Yes. I mean those were our first international customers in before the consumers. So I'm not sure what to say. We don't comment specifically on the trends in that particular business. But it follows the strength of our core business, given the product transformation.

是的，可能吧。是的。我的意思是，他們是我們在消費者之前的第一批國際客戶。所以我不知道該說什麼。我們不會對該特定業務的趨勢進行具體評論。但考慮到產品轉型，這符合我們核心業務的實力。

Jonathan Matuszewski, Jefferies.

喬納森·馬圖謝夫斯基，傑弗里斯。

Gary and Jack, I had one question, and it was on Waterworks. I didn't catch any comments on that business in the prepared remarks. So maybe just give us an update on your efforts to elevate the brand there. I think you've been working to integrate that business more with RH.

蓋瑞和傑克，我有一個問題，是關於 Waterworks 的。我在準備好的發言中沒有聽到任何關於此事的評論。那麼，請向我們介紹一下你們為提升品牌所做的努力。我認為您一直在努力將該業務與 RH 更好地整合。

So where are you finding success? What's the updated pacing for working that product into RH galleries, and maybe what still needs to be refined.

那麼您在哪裡找到成功？將該產品放入 RH 畫廊的最新節奏是什麼，也許還需要改進什麼。

Yes. Well, what has been -- I think I've commented not too long ago, an incredible job building the brand, the assortment, the positioning in the market, the offshore sourcing. I think Peter Ralph and the leadership team have been tremendous partners for us. And we've learned a lot from them about the industry, about the business and the dynamics, and it's there's a retail kind of -- the world's been set up historically as retail and trade.

是的。嗯，我想我不久前就評論過，打造品牌、產品分類、市場定位和離岸採購是一項令人難以置信的工作。我認為 Peter Ralph 和領導團隊是我們非常優秀的合作夥伴。我們從他們身上學到了很多關於這個行業、商業和動態的知識，而且這是一種零售業——世界歷史上就是以零售和貿易為基礎的。

And you have architects interior designers and everything interfacing at the trade level and consumers more interfacing at the retail level. And we think that, that the trade platform is is a dated platform because it's not a transparent platform nor is it an accessible platform. So it really limits the business.

而且，建築師、室內設計師等各行各業都在貿易層面有交集，而消費者則較在零售層面有交集。我們認為，該貿易平台是一個過時的平台，因為它不是一個透明的平台，也不是一個可訪問的平台。所以這確實限制了業務。

And I think, Peter and Ralph see that and understand that, and that's why they wanted to partner with us. And -- but they've spent the time with us building a really great base. The business is double the size, the EBITDA went from, I don't know, 2% to 16% this year or something like that. I mean, we don't disclose that, but it's turning into a really good, strong business, and it's a fast housing market. And we think that there -- we always wanted to partner with them and integrate the two businesses because we thought it completes the home.

我認為，彼得和拉爾夫看到並理解這一點，這就是他們想與我們合作的原因。而且——但他們花時間與我們一起建立了一個非常棒的基礎。業務規模擴大了一倍，EBITDA 從 2% 成長到了今年的 16% 左右。我的意思是，我們不會透露這一點，但它正在變成一個真正良好、強勁的業務，而且這是一個快速發展的房地產市場。我們認為——我們一直希望與他們合作並整合兩家企業，因為我們認為這可以使整個家庭更加完整。

And we were already in the business, but nowhere near at the level they were. And it is the best brand, I think, in the bath and kitchen area in the world.

我們已經進入這個行業，但遠不及他們的水平。我認為它是世界上浴室和廚房領域最好的品牌。

Any great house, it's most of them, it's the jewelry of the house. So we love the association. We're starting to test integration efforts. We put in a Waterworks kind of shop in Newport Beach. We've been open, I don't know, five, six months now, six months.

任何偉大的房子，大多數都是如此，它是房子的珠寶。所以我們熱愛這個協會。我們正在開始測試整合工作。我們在紐波特海灘開了一家 Waterworks 商店。我們已經開業了，我不知道，五、六個月了，六個月了。

We're learning. We're seeing how it's going. We have the customer, they're not expecting to find it there. And so we're testing and we're learning and we're growing. And I think we'll -- over the next couple of years, we'll connect some dots and figure out a big move.

我們正在學習。我們正在觀察事情進展如何。我們有客戶，他們沒想到會在那裡找到它。因此，我們正在測試、我們正在學習、我們正在成長。我認為，在接下來的幾年裡，我們會把一些點連結起來，並制定出一個重大舉措。

So -- but it's a great brand. I think it renders us more valuable. I think we can long term also render waterworks more valuable and helping expose one of the great brands in the world to a much bigger audience. And especially now -- I mean they're global before us. They were Europe before we were.

所以——但它是一個偉大的品牌。我認為這讓我們更有價值。我認為從長遠來看，我們還可以使水廠更有價值，並幫助世界上最偉大的品牌之一接觸到更廣泛的受眾。尤其是現在——我的意思是他們在我們面前已經走向全球了。在我們之前，他們就已經是歐洲了。

But we're going to -- I believe, over the next 10 years to have kind of a global assault almost, right? And a good combination of us doing it all ourselves, we could do some license franchise deals to go faster and more capital efficient. I think RH and Waterworks are two brands that should be global. I think the world would want those two brands. I think they'll be very successful two brands.

但我相信，在未來 10 年內，我們幾乎會發動一場全球性的攻擊，對嗎？透過良好的結合，我們可以自己做所有事情，也可以進行一些特許經營交易，從而加快速度並提高資本效率。我認為 RH 和 Waterworks 是兩個應該走向全球的品牌。我認為全世界都會想要這兩個品牌。我認為這兩個品牌將會非常成功。

And so we'll do a combination of some integration and stand-alone because you still have an important business there. So -- but I'll get -- their business is strong despite the housing market. And so we're really proud to be associated with them.

因此，我們將進行一些整合和獨立相結合的做法，因為你們在那裡仍然有重要的業務。所以——但我會明白——儘管房地產市場不景氣，但他們的業務仍然強勁。因此我們非常榮幸能與他們合作。

Cristina Fernandez, Telsey Advisory Group.

克里斯蒂娜‧費爾南德斯 (Cristina Fernandez)，特爾西顧問集團 (Telsey Advisory Group)。

I just have one. I wanted to see if you can expand on the tariff mitigation efforts, the product that's moving out of China outside of upholstery, where is it going? And you also mentioned on the letter that vendors were absorbing a significant portion of the cost. So the portion that RH is absorbing what what savings or what areas are you finding offset to offset that cost?

我只有一個。我想看看您是否可以詳細說明關稅減免措施，除了室內裝潢之外，從中國出口的產品都銷往了哪裡？您也在信中提到，供應商承擔了很大一部分成本。那麼 RH 吸收的部分是什麼節省，或者您發現哪些領域可以抵消該成本？

Yes. I don't know if I want to educate our competitors how we're doing, what we're doing and what specifically we're doing. But we have tremendous partners that we've been working with for years in a lot of ways we operate like one company. And so there's just incredible collaboration and big-picture thinking and how do we win together. And so I mean, it's not new.

是的。我不知道是否想讓我們的競爭對手了解我們的表現如何、我們在做什麼以及我們具體在做什麼。但我們擁有眾多合作夥伴，多年來我們一直與他們合作，在許多方面我們就像一家公司一樣運作。因此，我們需要令人難以置信的合作和全局思維，以及如何共同取勝。所以我的意思是，這並不是什麼新鮮事。

What it is right now is it's kind of chaotic and unpredictable. You don't know what the tariffs are going to really be, how long they're going to be. You don't know what countries are going to be what exactly.

現在的情況有點混亂且難以預測。你不知道關稅的實際金額是多少，以及會持續多久。你不知道哪些國家會變成什麼樣子。

And there's a lot of smart people that I know that government connections in multiple places in the world that believe that where the tariffs are now is kind of where they're going to be, except China is an outlier. And the other ones will be minor changes that is that right or not? I'm just telling you what I'm hearing. And I think -- I don't think we're going to see the US also swing the pendulum back to kind of the initial -- I mean, the initial moves on the tariffs, right?

我知道世界上很多地方的政府都有關係，很多聰明人都認為現在的關稅水平就是將來的水平，只有中國是個例外。而其他的只是微小的變化，對嗎？我只是告訴你我所聽到的。我認為——我不認為我們會看見美國把鐘擺擺回到最初的那種——我的意思是，最初的關稅舉措，對吧？

I think they're well articulated. I think there's a lot of logic to them, and here's the imbalance, and therefore, here's the reciprocal. I think that was the start of a negotiation. And I think that it's not just about tariffs. We're all seeing now. It's also about the materials for AI chips, what do they call them?

我認為他們表達得很好。我認為他們的觀點很有邏輯，但其中存在不平衡，因此，這裡存在著相互矛盾之處。我認為那是談判的開始。我認為這不僅僅涉及關稅。我們現在都看到了。還有AI晶片的材料，他們叫什麼？

(inaudible)

（聽不清楚）

No, no. Yes, the (inaudible) rare minerals -- rare minerals, there's -- I mean, there's lots of things that are -- I think the current administration is trying to kind of have rebalance trade but also rebalance other strategic things at the same time. And so it's probably a bigger negotiation than any of us really understand. And so we're not privy to those details. So it actually seems more chaotic when you can't anticipate something.

不，不。是的，（聽不清楚）稀有礦物——稀有礦物，有——我的意思是，有很多東西——我認為現任政府正在試圖重新平衡貿易，同時也重新平衡其他戰略事物。因此，這可能是一場比我們任何人真正理解的都要大的談判。所以我們不知道這些細節。因此，當你無法預料某件事時，事情實際上看起來會更加混亂。

And so -- but I think what I hear from behind the scenes of people who I think are relatively well connected is things are going to get resolved over the next few months. And the world will kind of go back to a more predictable operating outlook, and it should be better for the US. So we'll see I mean.

所以——但我認為，我從幕後那些關係相對較好的人那裡聽到的消息是，事情將在未來幾個月內解決。世界將會恢復到更可預測的運行前景，這對美國來說應該會更好。所以我們會看到。

Yes, everything we said we wanted to say it's kind of in the letter about tariffs. We don't need to kind of disclose things that each the whatever 10 competitors that were listening on our call, we don't have our experience our relationships.

是的，我們想說的一切都在有關關稅的信中。我們不需要向收聽我們電話會議的 10 位競爭對手透露任何信息，我們沒有經驗，沒有關係。

Brian Nagel, Oppenheimer.

奧本海默的布萊恩·納格爾。

Appreciate you sneaking me in here. I know the call is going long, so I'll just ask one question.

感謝您讓我偷偷來到這裡。我知道通話時間很長，所以我只問一個問題。

Look, a lot talking about balance sheet cash flow. Is there -- as you look at the business now and particularly with the shifting tariff dynamic, are you working towards or you think about some kind of a target debt metrics or coverage metrics for the balance sheet or income statement that you guys really want to gear towards?

看，很多關於資產負債表現金流的討論。有沒有—當您審視現在的業務，特別是不斷變化的關稅動態時，您是否正在努力或考慮某種目標債務指標或資產負債表或損益表的覆蓋指標，而您們真正想要實現這些指標？

Yes. I'd look at history, what we've done. This is a little unusual. Again, we got $2.2 billion of debt. And we got caught like everybody else did with the fastest rise of interest rates in the history of America.

是的。我會回顧歷史，看看我們做過什麼。這有點不尋常。我們再次背負了 22 億美元的債務。和其他人一樣，我們也遭遇了美國史上最快的利率上漲。

And so yes, do we like the debt ratio we have today? No, but do we like saying paying $230 million or $240 million of interest a year, of course not. Are we profitable in spite of that? Can we drive free cash flow despite that? Yes, of course.

那麼，我們喜歡現在的負債比率嗎？不，但我們喜歡說每年支付 2.3 億美元或 2.4 億美元的利息嗎？當然不是。儘管如此，我們還能獲利嗎？儘管如此，我們能否推動自由現金流？是的當然。

We're a real company. As I said, we -- we're in a crappy housing market, we're guiding to north of 20% adjusted EBITDA.

我們是一家真正的公司。正如我所說，我們正處於一個糟糕的房地產市場，我們預計調整後的 EBITDA 將達到 20% 以上。

We don't -- I mean, we've said this before, Brian, but we don't have specific targets. We don't also have any covenants that require us. I mean obviously, what Gary, that do we wish the ratio was better? Sure. But if you also look, we peaked last year at 5x.

我們沒有——我的意思是，布萊恩，我們之前說過，但我們沒有具體的目標。我們也沒有任何要求我們遵守的契約。我的意思是，顯然，加里，我們希望這個比例更好嗎？當然。但如果你也看一下，我們去年達到了 5 倍的峰值。

We're at 4.6x naturally delevering from the growth, so I think our guidance speaks for itself, so you can do the math of where that's going. And like again, just to reiterate, no specific targets.

我們的自然去槓桿率達到了 4.6 倍，所以我認為我們的指導是不言而喻的，因此您可以計算出其走向。再次重申，沒有具體的目標。

This concludes the question-and-answer session. I'll turn the call to Gary Friedman for closing remarks.

問答環節到此結束。我將邀請加里‧弗里德曼 (Gary Friedman) 致閉幕詞。

Great. Thank you, operator. Thank you, everyone, on the call. Thank you, team RH for fighting the good fight, living and breathing our values and moving us closer and closer to the top of that mountain and becoming one of the most admired brands in the world. So onward.

偉大的。謝謝您，接線生。謝謝大家的來電。感謝 RH 團隊的不懈奮鬥，實踐我們的價值觀，帶領我們越來越接近巔峰，成為世界上最受尊敬的品牌之一。所以繼續前進。

Thank you. This concludes today's conference call. Thank you for joining. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。