RH (RH) 2025 Q2 法說會逐字稿

Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the RH 2Q '25 earnings call. (Operator Instructions)

您好，感謝您的支持。我叫蒂芬妮，今天我將擔任您的會議主持人。現在，我歡迎大家參加 RH 2Q '25 收益電話會議。（操作員指示）

I would now like to turn the call over to Allison Malkin, ICR. Please go ahead.

現在我想將電話轉給 ICR 的 Allison Malkin。請繼續。

Thank you. Good afternoon, everyone. Thank you for joining us for our second 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 財年第二季財報電話會議。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 state about the outlook of our business and other matters driven 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 filings 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，包括有關我們業務前景以及我們今天發布的新聞稿中涉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 suggests 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，這意味著我們的公認會計準則結果將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。

And now I would like to turn the call over to Gary.

現在我想把電話轉給加里。

Thank you, Allison, and good afternoon, everyone. I'll start with our letter and then we'll open the call to questions. To our people, partners and shareholders, RH continued to generate industry-leading growth in the second quarter as revenue increased 8.4% and demand increased 13.7% despite the full rising impact of tariff uncertainty and the worst housing market in almost 50 years.

謝謝你，艾莉森，大家下午好。我先從我們的信件開始，然後我們開始提問。對於我們的員工、合作夥伴和股東來說，儘管受到關稅不確定性和近 50 年來最糟糕的房地產市場的影響，RH 在第二季度繼續實現行業領先的增長，收入增長了 8.4%，需求增長了 13.7%。

On a two-year basis, revenues increased 12% and demand increased 21%, resulting in significant share gains in strategic separation. As a reminder, we expect the approximate 5.4-point variance between demand and revenues due to tariff disruptions will shift from the second quarter and be realized as revenues over the second half of 2025.

兩年來，收入成長了 12%，需求增加了 21%，導致策略分離的份額大幅增加。提醒一下，我們預計由於關稅中斷導致的需求和收入之間約 5.4 個百分點的差異將從第二季度開始轉變，並在 2025 年下半年實現為收入。

Adjusted operating margin of 15.1% and adjusted EBITDA of 20.6% both increased 340 basis points versus last year, inclusive of an approximately 170 basis point drag from investments to support our long-term European expansion. Net income increased 79% and we generated $81 million of free cash flow in the quarter.

調整後的營業利潤率為 15.1%，調整後的 EBITDA 為 20.6%，均比去年增加了 340 個基點，其中包括為支持我們長期歐洲擴張而進行的投資所造成的約 170 個基點的拖累。本季淨收入成長了 79%，並產生了 8,100 萬美元的自由現金流。

We continue to be pleased with the second year demand trends at RH England, with gallery demand up 76% in the second quarter and online demand of 34%. Current demand trends indicate that gallery is expected to reach approximately $37 million to $39 million of demand in 2025, its second full fiscal year with 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，第二季畫廊需求成長了 76%，線上需求成長了 34%。目前的需求趨勢表明，預計 2025 年（即其第二個完整財政年度），畫廊的需求將達到約 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 in 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 a 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.

從這個角度看，如果一家位於英國鄉村、半徑 10 英里、距離倫敦兩小時車程、人口約 10 萬的 RH 畫廊在其第二個完整財政年度可以產生 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 萬的畫廊在其第二個完整財政年度可以產生什麼？我們相信，它會更加驚人。

While many questioned the decision to open our first RH Gallery in such a remote location, believing it would fail, what they fail to understand is the value of doing something extraordinary that breaks through the clutter and creates the conversation. 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.

儘管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，做一些非凡的事情來突破混亂並創造對話的價值。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。我們也意識到，將平凡和不起眼的東西變現是很困難的。

The most important news regarding our European expansion was the September 5 opening of RH Paris, our most innovative and immersive brand experience to date. Located on the Champs-Élysées, just off the Avenue Montaigne, RH Paris stands at the epicenter of fashion and luxury. Passthrough the Majestic Goldleaf Gate down a crush limestone path to a secret garden where ivy-covered walls and sculpted trees framed the 18-foot cast medallion doors marking the entrance.

關於我們歐洲擴張的最重要的消息是 9 月 5 日開幕的 RH Paris，這是我們迄今為止最具創新性和沈浸感的品牌體驗。RH Paris 坐落於香榭麗舍大道，緊鄰蒙田大道，是時尚和奢華的中心。穿過雄偉的金葉門，沿著碎石灰岩小路，到達一個秘密花園，常春藤覆蓋的牆壁和雕刻的樹木環繞著標誌著入口的 18 英尺鑄造的圓形大門。

Juxtaposing the entry is a freestanding RH Interior Design Studio. The two-storey glass structure is home to what has become one of the largest residential interior design firms in the world with projects on every major continent. A contemporary inlaid brass and white onyx mosaic frames a three-dimensional image of Leonardo Da Vinci, the Vitruvian Man and the RH Designs. The imagine ethos not only mirror the entrance storage Paris, but are also reflected in every building we inhabit and every house we turn into a home.

與入口並列的是一個獨立的 RH 室內設計工作室。這座兩層玻璃建築內坐落著世界上最大的住宅室內設計公司之一，其項目遍布各大洲。當代鑲嵌的黃銅和白色瑪瑙馬賽克構成了列奧納多·達·芬奇、維特魯威人和 RH 設計的三維圖像。想像的精神不​​僅反映了巴黎入口存儲，也體現在我們居住的每一棟建築和我們變成家的每一棟房子裡。

Step through the threshold and entered the architecture and design bibliothèque discover rare books from the foundational Masters, DaVinci, Palladio Wandel and Hausman. Commanding the center of the bibliothèque is one of the first modern printing, circa 1521 of De Architectura, the 10 books on architecture by First Century BC architect, Marcus Vitruvius. His description of a man outstretched within a circling swear inspired da Vinci famous drone with Vitruvian Man, some 1,500 years after his death.

跨過門檻，進入建築和設計圖書館，發現基礎大師達文西、帕拉迪奧、旺德爾和豪斯曼的稀有書籍。圖書館的中心位置擺放著最早的現代印刷品之一，大約在 1521 年出版的《建築學》，這是公元前一世紀建築師馬庫斯·維特魯威 (Marcus Vitruvius) 所著的十本關於建築的書籍。他對一個伸展身體、盤旋在空中的人的描述啟發了達文西，在他去世大約 1500 年後，他創作了著名的《維特魯威人》作品。

The gallery, spanning seven levels is connected by a shoring atrium of floating glass medallion stairs and a glass elevator that magically appears then disappears from an invisible shaft atop the rooftop garden. A cast bronze Caryatid, circa 1870 by renowned Franch sculptor, Louis-Félix Chabaud whose work is on display at the loop prices the center of the atrium.

畫廊共有七層，由一個由浮動玻璃圓形樓梯支撐的中庭和一個玻璃電梯連接，玻璃電梯神奇地出現又消失在屋頂花園頂部一個看不見的豎井中。約 1870 年由著名法國雕塑家 Louis-Félix Chabaud 鑄造的青銅女像柱，其作品在中庭中央的環形價格處展出。

Beyond their structural role, Caryatid symbolize strength, race and ingenuity, a harmony between art and engineering. We placed this specific Caryatid in the center of the grand atrium as a symbol is not only our desire to connect and create harmony between the architecture, art, history and hospitality offerings of RH Paris. It's also our desire to create hardening between RH and the people of Paris.

除了結構作用之外，女像柱還象徵著力量、種族和獨創性，是藝術與工程之間的和諧。我們將這尊特殊的女像柱放置在大中庭的中央，作為一種象徵，不僅代表了我們希望連接並創造 RH Paris 的建築、藝術、歷史和酒店服務之間的和諧。我們也希望加強 RH 與巴黎人民之間的關係。

On the lower level, ground and first floors, immerse yourself in artistic installations of furniture, antiques, artifacts and art in a gallery setting. Each level features full-floor exhibits by a singular artist and carefully curated pieces, not only chosen to furnish your home, but also define it. Dine under a spectacular curve glass and steel structure inspired by the Grand Palais while enjoying a curated menu of American and Mediterranean classics at Le Jardin RH, located on the second floor tariffs.

在較低的樓層、地面層和一樓，您可以沉浸在畫廊環境中的家具、古董、文物和藝術品的藝術裝置中。每個樓層都設有一位藝術家的全層展品和精心挑選的作品，這些作品不僅可以裝飾您的家，還可以定義您的家。在位於二樓的 Le Jardin RH 餐廳，您可以一邊在受大皇宮啟發的壯觀曲線玻璃和鋼結構下用餐，一邊享用精選的美國和地中海經典菜餚。

Marvel at the Stone Mastery is every surface from the bar to the bathroom is cloud and rare white onyx slabs. On the third floor, discover the world of RH Bar & Lounge, a physical and digital immersion into the places and spaces that define the RH brand while enjoying light sights and a craft cocktail by legendary bartender Colin field.

令人驚嘆不已的是，從酒吧到浴室的每個表面都是雲朵和罕見的白色瑪瑙板。在三樓，探索 RH Bar & Lounge 的世界，透過實體和數位方式沉浸在定義 RH 品牌的場所和空間中，同時享受燈光景觀和傳奇調酒師 Colin field 精心調製的雞尾酒。

Stepping to a jewel box of champagne-lacquered walls with a sparkling ceiling of over 7,000 individually hand-blown glass polyhedron at list with 360-degree views, including the Eiffel Tower, Grand Palais and the Louvre, the Le Petit rooftop is one of the most spectacular dining destinations in all of Paris, featuring a creative menu of caviar specialties, small plates, signature salads and seafood towers.

步入 Le Petit 屋頂餐廳，您會看到香檳色漆牆、閃閃發光的天花板（由超過 7,000 個手工吹製的玻璃多面體組成），360 度全景視野，包括埃菲爾鐵塔、大皇宮和盧浮宮。這裡是整個巴黎最壯觀的餐飲場所之一，提供創意菜單，包括魚子醬特色菜、小吃、招牌沙拉和海鮮塔。

While RH Paris may not sound like a retail store, it's not meant to be. It's an authentic expression of the RH Vision and design ethos. It is a global destination designed to manifest streams, generate desire and aspire and elevated and elegant way to list. I was asked by a journalist prior to opening. You're introducing multiple hospitality concepts at RH Paris, have you considered that Parisians have very strong opinions about their hospitality?

儘管 RH Paris 聽起來不像是一家零售店，但它實際上並非如此。這是 RH 願景和設計精神的真實表達。它是一個全球性的目的地，旨在體現溪流、激發慾望和嚮往，並以優雅而優雅的方式列出。開幕前有一位記者詢問了我。您在 RH Paris 引進了多種飯店概念，您是否考慮過巴黎人對飯店業有著非常強烈的看法？

I thought for a moment, and my answer was this, Parisians have very strong opinions about a lot more than their hospitality. Parisians have strong convenience about architecture and peaks, people, polish, fashion design, food and wine. Paris is a place you come to do your very best work. It is where you have the most to gain and the most to lose. In Paris, the measure is eternity, which we know and have built accordingly.

我想了一會兒，我的答案是：巴黎人對很多事情都有自己強烈的看法，不只是因為他們的熱情好客。巴黎人對建築和山峰、人民、波蘭語、時裝設計、食物和葡萄酒有著強烈的舒適感。巴黎是您實現最佳工作成就的地方。這是您獲得最多和失去最多的地方。在巴黎，衡量標準是永恆，我們了解這一點，並據此進行建設。

I'm also pleased to report that RH Paris is off to a very strong start. Traffic in the gallery has exceeded RH New York day by day. and the design pipeline in the first six days is greater than the design pipeline of our first five European galleries combined in their first six days. I didn't know what to put for this next headline, so I just kept it simple.

我還很高興地報告，RH Paris 取得了非常良好的開端。畫廊的流量已經日復一日地超過了 RH 紐約，而且前六天的設計渠道比我們前五家歐洲畫廊前六天的設計渠道總和還要多。我不知道下一個標題該寫什麼，所以我只是保持簡單。

Tariffs, tariffs and the possibility for more tariffs. Just when you might have thought that tariff conversation was complete, the announcement of a new furniture investigation and the possibility for additional furniture tariffs on top of existing furniture tariffs and incremental steel and aluminum tariffs were introduced with the goal of returning furniture manufacturing back to America.

關稅、關稅以及更多關稅的可能性。就在你可能認為關稅談判已經結束時，美國政府又宣布對家具進行新的調查，並可能在現有家具關稅和增量鋼鐵和鋁關稅的基礎上徵收額外的家具關稅，目的是讓家具製造業回歸美國。

We believe most in our industry hope that this investigation surfaces the difficulty of that task as current manufacturing for high-quality wood or metal furniture does not exist at scale in America. It would require years of investments in building the facilities and workforce that most in this industry cannot afford to make. Not to mention the significant inflation that we believe will start to become evident in the second half of this year and accelerate into 2026 and beyond.

我們相信，業內大多數人都希望這項調查能揭示這項任務的難度，因為目前美國還沒有大規模生產高品質木質或金屬家具。這需要多年的投資來建造設施和勞動力，而這個行業中的大多數人無法負擔。更不用說我們認為將在今年下半年開始顯現的嚴重通貨膨脹，並將在 2026 年及以後加速。

While strong brands like ours will benefit from the likely dislocation and consolidation more tariffs will have on our industry, many smaller companies will have difficulty surviving these levels of tariffs. Additionally, more tariffs on furniture could also result in US manufacturers moving production from the US, the countries closer to their international clients, avoiding freight costs and the likelihood of counter tariffs. Our hope is that the investigation will seek out the perspective of a cross-section of leaders in our industry as we drive towards the best outcome for our country.

雖然像我們這樣的強勢品牌將從關稅增加對我們的行業帶來的混亂和整合中受益，但許多小公司將難以在這種關稅水平下生存。此外，對家具徵收更多關稅也可能導緻美國製造商將生產從美國轉移到更靠近其國際客戶的國家，從而避免運費和可能的反關稅。我們希望，這項調查能夠尋求我們行業各階層領導人的觀點，以便我們能夠為國家爭取最好的結果。

As previously communicated, we've 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. Additionally, we are aggressively responding to the recent 50% tariffs imposed on India, which impacts 7% of our business, almost entirely handmade rugs. While the handmade rugs category is highly specialized and not manufactured in America, I think, for 100 years.

如同先前所傳達的，我們已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。此外，我們正在積極應對最近對印度徵收的 50% 關稅，這影響了我們 7% 的業務，幾乎全部是手工地毯。而手工地毯類別高度專業化，我認為 100 年來美國都沒有生產過。

We have begun the process of identifying the apart of the countries. We have also resourced a significant portion of our upholstered furniture to our own North Carolina factory, where we have been manufacturing for 10 years and plan to continue doing so. We are now projecting that 52% of our upholstered furniture will be produced in the United States, 21% in Italy and approximately 12% in Mexico by the end of fiscal 2025.

我們已經開始辨識各國之間的差異。我們還將很大一部分軟墊家具供應給我們自己的北卡羅來納州工廠，我們在那裡已經生產了 10 年，並計劃繼續這樣做。我們現在預計，到 2025 財年末，我們的 52% 軟墊家具將在美國生產，21% 在義大利生產，約 12% 在墨西哥生產。

We also expect the percentage made in the United States will continue to increase throughout 2026. While there remains uncertainty until tariff investigations are complete, we have proven we are well positioned to compete favorably in any market condition.

我們也預計，2026 年美國製造的比例將持續增加。儘管在關稅調查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保持有利競爭。

Outlook. Due to the dislocation and continued uncertainty related to tariffs, we believe it is prudent to revise our guidance for fiscal 2025 due to the following factors: while we continue negotiations with our manufacturing partners, our updated outlook reflects a $30 million cost of incremental tariffs, net of mitigation in the second half.

前景。由於與關稅相關的混亂和持續的不確定性，我們認為修改 2025 財年指引是明智之舉，原因如下：雖然我們繼續與製造合作夥伴進行談判，但我們更新後的展望反映了 3000 萬美元的增量關稅成本（扣除下半年的緩解措施）。

As communicated, due to the uncertainty related to tariffs, we delayed the launch of the new brand extension that was planned for the second half of 2025 to the spring of 2026. We've also delayed the introduction of our Fall Interior Source Book by eight weeks as we have waited tariff announcements needed to finalize pricing. Last year, 100% of the Fall Interior Source books were in home by the first week of August.

正如所傳達的，由於與關稅相關的不確定性，我們將原計劃於 2025 年下半年推出的新品牌擴展推遲到 2026 年春季。由於我們一直在等待最終確定價格所需的關稅公告，我們也將《秋季內政資源手冊》的推出時間推遲了八週。去年，8 月第一周，100% 的秋季室內裝飾資源書籍就已送到讀者手中。

This year, the Fall Interiors Source book will be 100% in home by the last week of September, with only 28% in home as of the end of last week. We now expect approximately $40 million in revenues to shift out of Q3 and into Q4 and Q1 '26 because of that shift. Our outlook does not include any new tariffs as a result of the recently announced furniture investigation.

今年，《秋季室內設計指南》將在 9 月最後一周前 100% 實現家庭出版，但截至上週結束，家庭出版率僅為 28%。由於這種轉變，我們現在預計約有 4,000 萬美元的收入將從第三季轉移到第四季和 26 年第一季。我們的展望不包括最近宣布的家具調查所導致的任何新關稅。

Fiscal year 2025 outlook. Revenue growth of 9% to 11%. Adjusted operating margin of 13% to 14%, adjusted EBITDA margin of 19% to 20%. Free cash flow of $250 million to $300 million. The above outlook includes an approximately negative 200 basis point operating margin impact from investments and start-up costs to support our international expansion and a 90 basis point impact from tariffs net of mitigations.

2025財年展望。收入增長9%至11%。調整後的營業利益率為13%至14%，調整後的EBITDA利潤率為19%至20%。自由現金流為 2.5 億至 3 億美元。上述展望包括支持我們國際擴張的投資和啟動成本對營業利潤率造成的約負 200 個基點的影響，以及扣除減免措施後的關稅對營業利潤率造成的 90 個基點的影響。

Third quarter 2025. Revenue growth of 8% to 10%, adjusted operating margin of 12% to 13%, adjusted EBITDA margin of 18% to 19%. The above outlook includes an approximately negative 270 basis point operating impact -- operating margin impact from investments to start across this quarter in international expansion and the opening of RH Paris, and a 120 basis point impact from tariffs, net of mitigations.

2025 年第三季。營收成長 8% 至 10%，調整後營業利潤率成長 12% 至 13%，調整後 EBITDA 利潤率成長 18% 至 19%。上述展望包括約負 270 個基點的營運影響——本季開始的國際擴張投資和 RH Paris 的開幕對營運利潤率的影響，以及扣除緩解措施後的關稅對營運利潤率的 120 個基點的影響。

Platform expansion -- 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 balanced symmetry in perfect proportions. Spaces that blur the lines between residential and retail, indoors and outdoors, home and hospitality, faces with Garden Portguards, rooftop restaurants, wine and barista bars, spaces that activate all of the senses and spaces that cannot be replicated online.

平台擴展—2025 年的海拔和擴展計劃。我們將繼續在我們的行業中開啟最鼓舞人心和身臨其境的物理體驗，有些人會說這個世界，這些空間反映了人類的設計，是對完美比例的平衡對稱的研究。這些空間模糊了住宅與零售、室內與室外、家庭與酒店之間的界限，面對著花園護欄、屋頂餐廳、葡萄酒和咖啡吧，這些空間可以激活所有的感官，是無法在網上複製的。

Our plan to expand the RH brand globally, address new markets locally and transform our North American galleries represents a multibillion dollar opportunity. Our platform elevation and expansion plans for the remainder of 2025 include the opening of four additional design galleries in Manhasset, San Diego, Detroit and Palm Desert.

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。我們在 2025 年剩餘時間內的平台提升和擴建計劃包括在曼哈塞特、聖地牙哥、底特律和棕櫚沙漠開設另外四家設計畫廊。

As previously communicated, we anticipate an inflection in our business across Europe as we begin to open in the important brand building markets of Paris in 2025 plus London and Milan in the spring of 2026, all with dramatic brand-building hospitality experiences. We believe post 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，隨著我們於 2025 年開始在巴黎等重要的品牌建設市場開業，並於 2026 年春季在倫敦和米蘭開業，我們預計整個歐洲的業務將出現轉折，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，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。

The early reads coming out of RH Paris are an indication of what's to come, RHEurope and the Middle East should enable us to double the size of RH over the next five to seven years. Looking forward, we plan to accelerate our 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 increased our current credit in underpenetrated markets and opened new markets to the RH brand.

RH 巴黎的早期讀數預示著未來的發展，RH 歐洲和中東應該能夠讓我們在未來五到七年內將 RH 的規模擴大一倍。展望未來，我們計劃加快擴張策略，包括每年開設七到九家新畫廊，加上每年兩到三家設計工作室、戶外畫廊或新概念畫廊，以增加我們在滲透不足市場的現有信譽，並為 RH 品牌開闢新市場。

Every decade or so, dark clouds will fill the economic skies and they will briefly rain gold, Warren Buffett. While we expect a higher risk business environment due to the uncertainty caused by tariffs, market volatility, inflation risk and an increasing level of global discard, 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 for 3 straight 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。雖然我們預期關稅、市場波動、通膨風險和全球丟棄量增加造成的不確定性將導致商業環境風險更高，但我們認為將訊號與噪音區分開來非常重要。事實上，我們已經連續三年處於近 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 were 4.06 million existing homes sold with a population of 340 million, 50% more people and less homes sold. And it illuminates just how depressed the housing market has been this past year to three years.

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，到 2024 年，現有房屋銷售量為 406 萬套，而人口為 3.4 億，人口增加了 50%，而房屋銷售量卻減少了。這也反映出過去一至三年房地產市場的低迷程度。

Despite that fact, we are performing at a level most would expect in a robust housing market. We believe that the 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 presenting 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.

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預期的水平。我們相信，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的結果，透過創造最受歡迎的產品來提升和擴展我們的平台，這些產品呈現在世界上最具啟發性的空間中，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。

While our business has been strong, it has been so due to action versus in action, innovating versus duplicated, 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. We are investing in the most iconic global locations in retail that will likely never be duplicated in our lifetimes. We are building a global hospitality company with multiple concepts across multiple continents.

雖然我們的業務一直很強勁，但這是因為我們在經濟低迷時期採取了行動而不是袖手旁觀、創新而不是重複、投資而不是撤資以及積極搶佔市場份額，因此我們有能力在經濟低迷時期實現長期戰略分離。我們正在投資全球最具代表性的零售地點，這些地點在我們的一生中可能永遠無法複製。我們正在打造一家橫跨多個大洲、擁有多種理念的全球性飯店公司。

We are creating a global bespoke interior design business that completes million-dollar plus full home installations. We are building a global contract and hospitality business where our products were 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 EBITDA margin of approximately 20%. Imagine what our margins and cash flow might look like in a robust housing market as we begin to cycle and leverage those investments.

我們正在創建一家全球客製化室內設計公司，完成價值數百萬美元以上的全套家居安裝。我們正在建立一項全球合約和酒店業務，我們的產品已在全球一些最好的酒店和住宅項目中得到應用，我們正在打造業內最受歡迎和最傑出的品牌，同時預測 EBITDA 利潤率約為 20%。想像一下，當我們開始循環和利用這些投資時，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 $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 3 億美元的過剩庫存，我們計劃在未來 12 至 18 個月內將其轉化為現金，因為我們會在產品轉型後優化產品組合。

We are forecasting to generate $250 million to $300 million of cash flow in 2025 and our plans call for significant and growing cash flow from operations over the next several years if 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 億美元的現金流，如果我們循環這一積極的投資期，我們的計劃要求在未來幾年內從營運中獲得大量且不斷增長的現金流。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，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 Buffet wrote in its 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's imperative that we rush outdoors carrying washtubs and not teaspoons. Our debt is reflective of a washtub on ourselves.

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，經濟的天空就會烏雲密布，然後短暫地降下金雨。當發生這樣的傾盆大雨時。我們必須帶著洗衣盆而不是茶匙衝到戶外。我們的債務就像是我們身上的洗衣盆。

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 '17, and repurchased 30% of our outstanding shares during this housing downturn in 2022 and 2023. While the sky in our sector has been darkened by inflation, interest rates, tariffs and global politics, those clouds will soon pass, and it will not only be clear skies, but also clear that it was a good time to be a shareholder of RH, Carpe diem.

在 2016 年和 2017 年巴菲特先生發表信函後，我們回購了 60% 的流通股，這極大地造福了我們的長期股東，並在 2022 年和 2023 年房地產市場低迷期間回購了 30% 的流通股。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過去，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，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) Simeon Gutman, Morgan Stanley.

（操作員指示） 西緬古特曼，摩根士丹利。

Thanks for the question. So my first question is the free cash flow is starting to sequentially improve, and you generated a decent amount this quarter. If you generate $250 million to $300 million for the full year and presumably even more through is real estate monetization still something you would or even need to pursue?

謝謝你的提問。所以我的第一個問題是自由現金流開始連續改善，並且本季產生了相當可觀的金額。如果您全年的收入為 2.5 億至 3 億美元，甚至可能更多，那麼房地產貨幣化仍然是您會追求或需要追求的事情嗎？

I don't know if we need to pursue it. we're opportunistic. We're not really real estate owners, right? We're real estate developers, and we have a sale-leaseback model and we generally hold real estate for relatively short periods of time. We saw an opportunity when we were doing our deals in Aspen that the local developer there who would acquired really an outstanding portfolio of assets.

我不知道我們是否需要追求它。我們是機會主義者。我們實際上並不是房地產所有者，對嗎？我們是房地產開發商，我們採用售後回租模式，我們持有房地產的時間通常相對較短。當我們在阿斯彭做交易時，我們看到了一個機會，當地的開發商將獲得真正優秀的資產組合。

We had an opportunity to invest in that portfolio at a what we thought was a really attractive price. And we had a vision of possibly in a very small -- I call Aspen probably be the most influential organized small luxury town in the world. I don't know if I've ever seen anything like in about 6 square blocks, you have unbelievable retail you have wealth all around that all comes in shop there, all comes into each in the restaurants there.

我們有機會以我們認為非常有吸引力的價格投資該投資組合。我們的願景是，在一個非常小的地方——我稱阿斯彭為世界上最具影響力的、有組織的小型豪華城鎮。我不知道我是否曾經見過這樣的東西，在大約 6 個街區的範圍內，有令人難以置信的零售店，周圍都是財富，所有人都來那裡購物，所有人都來那裡的餐館。

And all (inaudible) a couple of blocks from there. Just walk to (inaudible) so forth. . And as I got to know Aspen and I was looking at our opportunities, we thought, geez, what could we do here that could -- maybe in this 6 block, (inaudible) focused little town with, I say what is, the 86 billion that live there now. I mean there's really -- I've never seen anything like it. I mean, it's more unique than Sante Fe.

且所有（聽不清楚）都距此幾個街區。只要走到（聽不清楚）等等。。當我了解阿斯彭並尋找機會時，我們想，天哪，我們可以在這裡做些什麼呢——也許在這個 6 個街區（聽不清楚）的小鎮，我說的是，現在有 860 億人生活在那裡。我的意思是，我從來沒有見過這樣的事情。我的意思是，它比聖達菲更獨特。

It's more anything course of all. It's more an I've seen from the aggregation of wealth and influence and your ability to -- we had an ability to build two brand-new buildings, right, which is on 2 of the best corners in town. I mean our galleries on Galena and the Cross Street is the best corner in Aspen. (inaudible) to rare, brought some Casita across from Mariana, right next storage, (inaudible) and every luxury brand marching up the to the street.

當然，這還不算什麼。我從財富和影響力的聚集以及你的能力中看到了更多——我們有能力建造兩座全新的建築，對吧，它們位於鎮上最好的兩個角落。我的意思是，我們在加利納和十字街的畫廊是阿斯彭最好的角落。 （聽不清楚）很少見，從瑪麗安娜對面帶來了一些 Casita，就在倉庫旁邊，（聽不清楚）每個奢侈品牌都走上街頭。

And our guest house is an East time where the cross-treat is where they're building lift 1. So 1.5, 2 blocks down they're building the second big conduit, right, and the [ Aman Resorts ] going in there. And everybody is going to be driving by that corner and everybody going to be walking by and driving by our other corner. So these were the two best I thought buildings that you could get. It's just -- as our partner calls forever real estate, right? It's never going to go down. It's always going to go up.

我們的賓館位於東邊，那裡正在建造 1 號電梯。所以，往下 1.5 到 2 個街區，他們正在建造第二條大管道，對吧，阿曼度假村 (Aman Resorts) 就建在那裡。每個人都會開車經過那個角落，每個人都會步行經過或開車經過我們的另一個角落。所以我認為這是你能找到的最好的兩棟建築。這只是——正如我們的合作夥伴所說的永遠的房地產，對嗎？它永遠不會下降。它總是會上漲的。

And so -- and we have the opportunity to become the landlord for Chanel, the landlord for Gucci, the landlord, lululemon, what else in our portfolio (inaudible). Yes, we've got rest week on San Ambrose. We've got I can't remember, we got that stake. We're the landlord -- we're kind of key retail landlord in the core of assets -- so we thought we could learn about real estate.

所以——我們有機會成為 Chanel 的房東、Gucci 的房東、lululemon 的房東，我們的投資組合還有什麼（聽不清楚）。是的，我們在聖安布羅斯休息了一周。我們有，我不記得了，我們有那筆股份。我們是房東——我們是資產核心的關鍵零售房東——所以我們認為我們可以學習房地產知識。

We could learn the landlord side of it. We can understand how the other people negotiate, what's important to them. and we would just -- we get smart and then there was opportunities to do residential. A few other things that we've talked about in the past, few RH Residences at the boomerang lodge and build our first bathhouses and spa and so on and so forth. And so we thought this would be a terrific place to build our brand image and have a global billboard.

我們可以了解房東方面的情況。我們可以了解其他人如何談判，了解什麼對他們來說是重要的。然後我們就會變得聰明，然後就有機會做住宅。我們過去也討論過其他一些事情，在迴旋鏢小屋建造幾個 RH 住宅，並建造我們的第一間浴室和水療中心等等。因此我們認為這將是建立品牌形象和擁有全球廣告看板的絕佳場所。

And then look, unfortunately, we had the fastest rise of interest rates in the base, right? And -- and that's not really good for developers, whether you're our partner or your us, you're going to be developing at a much higher cost of capital. And so that kind of slowed us down and also compounded by our partner likes to say that building an Aspen is harder than building on the moon. So it's not some -- not the easiest place to develop, let's just say.

然後你看，不幸的是，我們的基準利率上升速度最快，對吧？而且——這對開發商來說並不是什麼好事，無論你是我們的合作夥伴還是我們的合作夥伴，你都需要以更高的資本成本來開發。這在某種程度上減慢了我們的速度，我們的合作夥伴也說，建造一座阿斯彭大樓比在月球上建造大樓更難。所以可以說，這不是最容易開發的地方。

So we kind of have to slow things down and -- but we're very close to getting our mountain house open and very close to getting our guest house open, and those are two of the key trophy properties in our portfolio. we're less interested. We've been a landlord now for a while. We've learned what we needed to learn. If that's the place to tie up our capital. No, not really. We've learned a lot. And is it at the cost of capital today and the cost of construction of Aspen today? Is it -- does it look as attractive to build their with a really long-term view.

因此，我們必須放慢腳步——但我們的山間別墅和賓館都即將開業，而這些是我們投資組合中的兩個關鍵獎杯物業。我們不太感興趣。我們當房東已經有一段時間了。我們已經學到了我們需要學習的東西。如果那是我們資本被束縛的地方。不，不是真的。我們學到了很多。這是今天的資本成本和今天的阿斯彭建設成本嗎？從長遠角度來看，建設這些設施是否具有吸引力？

But again, I don't know if necessary for us. So we're open. It's not a timing we really want to sell right now. I mean if they inflation in check, which is questionable with the tariffs, and they can lower interest rates, cap rates will be more attractive, and there might be some people that want to make -- that have a long-term view and want to make a fair offer on a portfolio like this.

但我仍然不知道這對我們來說是否有必要。所以我們開放了。現在並不是我們真正想出售的時機。我的意思是，如果他們能控制通貨膨脹（這對關稅來說是值得懷疑的），並且他們可以降低利率，那麼資本化率就會更有吸引力，而且可能會有一些人想要做出——他們有長遠的眼光，並希望對這樣的投資組合做出公平的報價。

But otherwise, we're in no rush. Yes, we're patient. But if the right opportunity came in somebody who has really had a long-term view and they want to own for every real estate like Aspen. It's an incredible asset.

但除此之外，我們並不著急。是的，我們很有耐心。但如果合適的機會來臨，有人真正具有長遠眼光，他們想擁有像阿斯彭這樣的每一個房地產。這是一筆不可思議的財富。

And Simeon, I'd just add, when we communicate the value of the real estate, I think you asked if we need to do it. Our intention was never to communicate a need or a plan. It was, as Gary said, opportunistic -- it's an opportunity to make sure that folks understand the value of that real estate on our balance sheet, especially as it relates to the debt that we have.

西緬，我想補充一點，當我們傳達房地產價值時，我想你會問我們是否需要這樣做。我們的意圖從來不是要傳達某種需求或計劃。正如加里所說，這是一個機會——這是一個確保人們了解我們資產負債表上的房地產價值的機會，特別是因為它與我們的債務有關。

And we've got other things besides that in the $500 million, right? We own RH England. We own RH Detroit. We own a property, we're going to develop areas RH New Jersey. We own a property in Madrid right now, but we love our current gallery. So we think we can monetize that one. We have actually have in the market today. It's an incredible old palace. But we don't really -- we don't believe we need two stores in Madrid.

除此之外，這 5 億美元還有其他東西，對嗎？我們擁有 RH England。我們擁有 RH 底特律。我們擁有一處房產，我們將開發 RH 新澤西州的地區。我們現在在馬德里擁有一處房產，但我們熱愛我們現在的畫廊。所以我們認為我們可以將其貨幣化。我們目前實際上已經在市場上有產品了。這是一座令人難以置信的古老宮殿。但我們實際上並不認為我們需要在馬德里開設兩家商店。

We really love what we're doing there. We're going to put a small pool at RH in there now that we developed this new pool concept that doesn't need a big kitchen that can pair us which everybody ought to go to, by the way. If you missed our parties, I mean you should have never missed that part. Like everybody's got to go see Paris because it is not another gallery. It is a leap frog. It is another kind of inflection point that helps us see a whole other opportunity here.

我們真的很喜歡在那裡所做的事情。既然我們開發了這個新的泳池概念，我們就準備在 RH 那裡建造一個小型泳池，它不需要一個可以讓我們配對的大廚房，順便說一句，每個人都應該去。如果您錯過了我們的派對，我的意思是您不應該錯過那部分。就像每個人都必須去看看巴黎，因為它不是另一個畫廊。這是一種跳躍式思維。這是另一個轉折點，可以幫助我們看到另一個機會。

Like when you see the world of RH, and when you see pattern, you see what we've done in hospitality wide. So when you see what we've done design-wise when you see the architecture and design library. For second one we've done the bibliotheque. We did in RH England because there was a big LIBOR that have been there for 400 years.

就像當您看到 RH 的世界時，當您看到模式時，您會看到我們在整個酒店業所做的事情。因此，當您看到我們在設計方面所做的工作時，當您看到架構和設計庫時。對於第二個，我們完成了圖書館。我們在 RH England 這樣做是因為那裡有一個已經存在了 400 年的大型 LIBOR。

So we made it a larger market segment you see that the cool when he walked through and I mean, it's just so much that I think we've done that takes us to another level. I doubt that there's a luxury retailer in that city at the highest end that doesn't believe we just built the best store in the world. And I think everybody should go see it. because it's unlike anything you've seen.

因此，我們將其打造成了一個更大的細分市場，當他走過時，你會看到很酷的感覺，我的意思是，我認為我們所做的一切都將把我們帶到了另一個層次。我懷疑那個城市最高端的奢侈品零售商是否會不相信我們剛剛建造了世界上最好的商店。我認為每個人都應該去看看，因為它與你見過的任何東西都不一樣。

The traffic -- when you think about it, it's -- I don't know, one-third of the size of New York -- and it had more traffic in New York every single day that we opened, not New York in its first five days in New York today, the highest volume gallery in the company. Okay, New York today. it's unreal -- what's happening there the people that are coming. So anyway.

想想看，這裡的客流量大概是紐約的三分之一，而且我們開業後，紐約的每一天客流量都更大，今天在紐約開業的頭五天裡，紐約的客流量是公司裡最高的畫廊。好吧，今天的紐約。這太不真實了——那裡發生的事情，以及那些即將到來的事情。無論如何。

If I can ask a follow-up. And by the way, I'll be there next week, so for the Aspen party. My follow-up, it's maybe paraphrasing something you said, Gary, you said the clouds could be clearing soon. And you've gotten through a lot of things over the last couple of years between rates and housing. And now embedded in your financials is investment with Europe, you have all this newness and you're growing the revenue and you're generating cash now.

我可以詢問後續情況嗎？順便說一下，我下週會去那裡參加阿斯本派對。我的後續問題是，這也許是對您說的某句話的解釋，加里，您說烏雲可能很快就會散去。過去幾年裡，你們在利率和住房方面經歷了很多事情。現在，您的財務狀況中已經包含了對歐洲的投資，您擁有所有這些新鮮事物，而且您的收入正在增加，並且正在產生現金。

So it feels like you're knocking on the door of that period. You mentioned soon. I don't know if you were giving a financial forecast or a weather forecast, but it's soon. So what's wrong with that logic that the business is on the cusp of this growth period that you've been engineering for the last several years?

所以感覺就像你正在敲那個時期的大門。您提到很快。我不知道您是在做財務預測還是天氣預報，但很快就要到了。那麼，你們過去幾年一直在推動的業務正處於成長期的尖端，這種邏輯有什麼問題呢？

Yes. I think that the business is ready. We're going to be kind of going post peak on the investment cycle. One thing we've all had to deal with and anybody who's building anything of high quality, construction costs post COVID are up like 100%. For some people I've talked to at the luxury level, they're up 150%. We've been able to develop new concepts.

是的。我認為該業務已經準備好了。我們即將進入投資週期的頂峰之後。我們所有人以及任何建造高品質建築的人都必須面對的一件事是，新冠疫情之後的建築成本上漲了 100%。對於我所交談過的某些奢侈品消費者來說，他們的價格上漲了 150%。我們已經能夠開發新的概念。

We talked to you about that define ecosystem, designed compound and other things that we're taking the bigger multi-store box and breaking it into pieces and even trying to create significantly better capital efficiency and putting our creativity to work that way. So you'll see it. I think once -- once we get there, it's hard to make a call today, right? Like we're likely going to get an interest rate cut.

我們與您討論了定義生態系統、設計複合體和其他事物，我們將更大的多商店盒子分解成各個部分，甚至試圖創造更好的資本效率，並以這種方式發揮我們的創造力。所以你就會看到它。我認為一旦——一旦我們到達那裡，今天就很難打電話了，對吧？就像我們可能會降低利率一樣。

We got one last year and everybody thought there was going to be like four or five more I use my house in Beverly Hills off the market because I thought I was going to get a much better price. I should have took the offer I add back in the housing market in LA is not great. And so I don't know what's going to happen. Look, I think the biggest thing for everybody to worry about is don't let the 1970s happen.

我們去年買了一套房子，每個人都認為還會有四、五套，而我選擇在市場上出售我在比佛利山莊的房子，因為我認為這樣能賣出更好的價格。我應該接受這個報價，因為洛杉磯的房地產市場並不好。所以我不知道會發生什麼事。聽著，我認為每個人最擔心的事情就是不要讓 20 世紀 70 年代的悲劇再次發生。

If you zoom in on the chart of what happened with federal funds rate over that 10-year period, yes, it was arguably the 10 worse years in the US economy. Now I remember I was 18 years old when I bought a $125 waterbed at Waterbed World at 28% interest. And I don't know how many years it kept me to pay it off $12 a month or something like that. But (inaudible) long enough to remember what erase peaked at 21%. We say interest rates are high now, lose controlled inflation, and you can have payoffs.

如果你放大這 10 年期間聯邦基金利率變化的圖表，是的，這可以說是美國經濟最糟糕的 10 年。現在我記得我 18 歲的時候在 Waterbed World 以 28% 的利率買了一張價值 125 美元的水床。我不知道我需要多少年才能每月還清 12 美元或類似的金額。但（聽不清楚）足夠長的時間來記住擦除的峰值為 21%。我們說現在利率很高，失去控制的通貨膨脹，你就可以得到回報。

So what do I worry the most about? Just kill inflation. I'm more motivated about killing inflation than getting an interest rate cut right now. As we had an interest rate cut and the tariffs create more inflation than anybody thinks. And it's not going to all come at one time in blip. The inventory is going to flow in over the course of the year. And you're going to have to cycle through inventories.

那我最擔心的是什麼呢？只要消滅通貨膨脹即可。我現在更關心的是抑制通貨膨脹而不是降低利率。由於我們降低了利率，關稅造成的通貨膨脹比任何人想像的都要嚴重。而且這一切不會一下子突然發生。庫存將在一年內流入。您將必須循環檢查庫存。

You're going to have new tariffs. God forbid, they through another tariff on furniture. I mean I think they've got it, but someone has got to come talk to us, talk to me, call me. I run the biggest luxury home brand in the world, somebody call me and ask me what I think. Because it's not really us. I worry about -- I don't want to win because 50% of our competitors who are really good, hard-working people get wiped out. You lose 15% of the people that are presenting at High Point market or Las Vegas market, those markets will shut down.

你們將會面臨新的關稅。但願他們不要再對家具徵收另一項關稅。我的意思是，我認為他們已經明白了，但必須有人來和我們談談，和我談談，打電話給我。我經營著全世界最大的豪華家居品牌，有人打電話來問我的想法。因為這其實不是我們。我擔心——我不想贏，因為我們 50% 的真正優秀、勤奮的競爭對手會被淘汰。如果你失去了 15% 在高點市場或拉斯維加斯市場參展的人員，這些市場就會關閉。

They'll be bankrupt. I really don't think anybody is thinking about the math. There's no one that's making wood furniture scale, metal furniture scale. If there is another round of tariffs and furniture. I mean, long term, it will be good for us -- it's really bad for a lot of people in High Point. So whoever in High Point or North Carolina is advocating for it is got to have a really narrow myopic view because this makes no sense for the US economy long term.

他們將會破產。我真的不認為有人在想數學問題。沒有人製作木製家具秤、金屬家具秤。如果再有新一輪的關稅和家具。我的意思是，從長遠來看，這對我們有好處，但對 High Point 的許多人來說卻很糟糕。因此，無論是在海波因特還是在北卡羅來納州提倡這種做法的人，其眼光都是非常狹隘的，因為這對美國的長期經濟毫無意義。

We will blow up people, and there will be massive job losses. And I think people need to understand that at all levels of the administration. And I've been a fan of a lot that's been going on. I think directionally, they're doing a lot of right things. But yes, I don't know, I run the biggest luxury home brand in the world. No one's talking to me. I've got a point of view, and so I'm making that known now. We're in the cuts are going too far there. That's what I worry about.

我們將炸死一些人，並造成大量失業。我認為各級政府的人們都需要理解這一點。我對正在發生的很多事情都很感興趣。我認為從方向上看，他們做了很多正確的事情。但是的，我不知道，我經營著世界上最大的豪華家居品牌。沒人跟我說話。我有一個觀點，所以我現在就把它表達出來。我們的削減幅度太大了。這就是我擔心的。

Steve Forbes, Guggenheim.

古根漢的史蒂夫福布斯。

Gary, maybe shifting the focus to inventory, sort of a two-part question here. The first, given the change in the average tariff rate and the sort of excess inventory that you guys are winding down, any help on sort of coaching or framing how much room there is or for a continued reduction in net inventory on the balance sheet?

加里，也許將焦點轉移到庫存上，這是一個由兩部分組成的問題。首先，考慮到平均關稅稅率的變化以及你們正在減少的過剩庫存，有什麼幫助可以指導或確定資產負債表上的淨庫存還有多少減少空間或持續減少的空間嗎？

And then the second point is there is given everything you just said, how much visibility is there into the planned launch of the new brand extension in spring? Or is there still some risk around that extension launching?

第二點是，根據您剛才所說的一切，春季新品牌延伸計畫的推出有多大前景？或者該擴充功能的推出是否仍存在一些風險？

Yes. I don't think there's risk around that extension launching. -- unless we get some really silly tariffs in on this investigation. I mean I really hope this investigation includes seating to industry leaders. And it's not an investigation into a small little segment of the business. we will sell more upholstered furniture made in America than almost anybody making furniture in North Carolina.

是的。我認為推出延期政策不會有風險——除非我們在這次調查中提出一些非常愚蠢的關稅。我的意思是我真的希望這次調查包括對行業領導者的調查。這並不是對一小部分業務的調查。我們銷售的美國製造的軟墊家具將比幾乎任何北卡羅來納州的家具製造商都要多。

Like, yes, our upholstery business, you've got brands that are a -- it's 130-year-old US brands, and they don't make wood furniture or metal furniture in America anymore. They don't. So you've got to be really careful. Upholster furniture, we can make in America. We can do that. We can be competitive because you've got advantages, it's special orders and feed the market and so on and so forth. But there's just not the workforce to make the other stuff.

是的，我們的室內裝潢業務有一些品牌——它們是有 130 年歷史的美國品牌，它們不再在美國生產木製家具或金屬家具了。他們沒有。所以你必須非常小心。我們可以在美國製造軟墊家具。我們可以做到。我們之所以具有競爭力，是因為你們有優勢，有特殊訂單，能滿足市場需求等等。但就是沒有足夠的勞動力來生產其他產品。

And there's not people there. The next generation doesn't want the jobs. If you talk to people. Again, our volume in our factory and what we're going to make is as big as some of the biggest people at the high end. I mean they'll compare us to actually or somebody that's $10 billion at the low end. And I think as, what, 65% of their business in America, 35% of the business offshore.

那裡沒有人。下一代不想要這些工作。如果你和別人交談。再說一次，我們工廠的產量和我們要生產的產品與一些高端巨頭的產量一樣大。我的意思是，他們會將我們與最低價值 100 億美元的公司進行比較。我認為，他們的業務 65% 在美國，35% 的業務在海外。

I'm just saying the high-end furniture market, it's not coming back for years. And all that's going to mean is people are going to -- there's a lot of people who are going to close and a lot of jobs are going to be lost. And I think people have to consider that. So -- but when you think about like -- it's the risk of extension on no risk at all. Things might be more expensive, but they're going to be more expensive for everyone, right? So we have advantages -- we buy more than anybody in our market by probably 3 times at our quality, the next closest person.

我只是說高端家具市場幾年內都不會復甦。而這一切意味著人們將會——很多人將會關門歇業，很多人將會失去工作。我認為人們必須考慮到這一點。所以——但是當你考慮——這是延伸的風險而不是完全沒有風險。東西可能會更貴，但對每個人來說都會更貴，對嗎？因此我們有優勢——我們購買的商品比市場上的任何人都多，品質也比第二名的要好 3 倍。

So we have no, tremendous leverage here. I wouldn't want to be competing with us, but I don't like winning this way. It's not going to be pretty. So I think, hopefully, we're done with furniture tariffs. And ring the register in the tariff bank, but let's not completely disrupt an industry, see High Point closed, the major furniture store -- furniture storage closed, family, long-time businesses, they'll be dead. So that's the most important thing.

所以我們在這裡沒有巨大的影響力。我不想和我們競爭，但我不喜歡用這種方式取勝。這不會是好事。所以我認為，希望我們能夠完成家具關稅問題。並在關稅銀行登記，但我們不要完全擾亂一個行業，看看 High Point 的關閉，主要的家具店 - 家具存儲關閉，家庭，長期企業，他們都會倒閉。這是最重要的事。

Inventory reduction, everything else we're doing fine. And again, if you're thinking, do I buy our stock or not? Buy our stock either way. We will win. We've spent $1 billion is building a platform here. Yes. We have most dominant inspiring high-end platform for luxury furniture in the world. We know how to source it. We have leverage buying it.

減少庫存，其他一切都做得很好。再說了，如果你在想，我是否要買我們的股票？無論如何，購買我們的股票。我們將會勝利。我們花了 10 億美元在這裡建造一個平台。是的。我們擁有世界上最具主導地位的高端奢華家具平台。我們知道如何找到它。我們有購買它的槓桿。

We know how to market it. What do you do if you're a wholesaler and all your customers go bankrupt. They can't afford it. The customers can't afford it. Like what do you do then? I think the tariffs dry up. You slow down the furniture business, you're going to slow down the tariffs. And that's why I think someone's got to sit down from the industry with the administration and go through the math.

我們知道如何行銷它。如果您是批發商並且您的所有客戶都破產了，您會怎麼做？他們負擔不起。顧客無法承受。那你會做什麼呢？我認為關稅將會消失。如果你減緩家具業務的成長，你就會減緩關稅的提高。這就是為什麼我認為業界應該有人與政府坐下來討論這個問題。

This is just simple math. Don't let it be emotional. Let it be intellectual and rational and data-driven. We've got all the math here. And I don't know a lot of people in the industry that would love to sit down and debate this.

這只是簡單的數學。不要讓它帶有情緒。讓它變得理智、理性、數據驅動。我們已經完成了所有的數學運算。我不知道這個行業中有多少人願意坐下來討論這個問題。

Steve, the framework for inventory reduction yes, one of the things to think about is just what is our -- I mean at the most simple level, what's our turn rate turns have been in the past? Obviously, we've turned the inventory on an external basis into the high 2s, low 3s. So do you even just think about the -- Gary mentioning a letter the $200 million to $300 million of inventory reduction where that gets us.

史蒂夫，庫存減少的框架是的，要考慮的事情之一就是我們的——我的意思是，在最簡單的層面上，我們過去的周轉率是多少？顯然，我們已經將外部庫存變成了 2 的高位和 3 的低位。那麼，您是否考慮過——加里在一封信中提到了 2 億至 3 億美元的庫存減少會給我們帶來什麼好處。

Hypothetically, at the end of the year, you're starting to see a run rate of a turn into the closer to the mid-2s. So is there room beyond that. We do believe that.

假設，在年底，你會開始看到運行率轉向接近 2% 左右。那麼除此之外還有空間嗎？我們確實相信這一點。

In '18 and '19, we were running like 3%, 3.2%.

在 18 年和 19 年，我們的成長率分別為 3%、3.2%。

Yes, yes.

是的，是的。

So we can run a much faster turn. You're seeing the slow returns we're running today is the massive product transformation, right? You're buying a lot of inventory. You're getting light rock right, you're getting some wrong. And so it's inefficient to do what we just did. That in and of itself is a big investment. But we're on the other side of that. I mean we do have a whole new concept coming. It's probably the biggest idea and the lowest risk we've ever taken on a brand extension.

這樣我們就可以跑得更快。您看到我們今天進行的緩慢回報是由於大規模的產品轉型，對嗎？您正在購買大量庫存。您對輕搖滾的理解有一定道理，但也存在一些錯誤。因此，我們剛才的做法是低效率的。這本身就是一項巨大的投資。但我們正處於另一邊。我的意思是我們確實有一個全新的概念即將到來。這可能是我們在品牌延伸方面最偉大的想法和最低的風險。

I think it's the biggest -- I mean, practically did modern go to $1 billion per year? Yes. I mean this is probably -- this is a $2 billion idea, and it could go really quickly. We think we're going to hit the trend that on -- the product we have in development is like nothing else at the market. It's going to be massively disruptive, exciting. -- and we were confident enough that we're going to open three galleries to launch it with. And we're going to do more if we can.

我認為這是最大的——我的意思是，現代實際上每年的產值達到 10 億美元嗎？是的。我的意思是，這可能是一個價值 20 億美元的想法，而且它可能很快就會實現。我們認為我們將引領潮流——我們正在開發的產品與市場上的其他產品不同。它將帶來巨大的顛覆，令人興奮。 ——而且我們非常有信心，我們將開設三個畫廊來推出它。如果可以的話，我們會做得更多。

We'll have the Ralph Lauren store in Breda, Connecticut. We've got an incredible location in West Hollywood, and that we'll be announcing more about soon. And then we've got our original gallery in San Francisco that we own in the design right middle of the Design District, where we kind of relaunched the whole brand. Well, 2010, right? 2009. Yes, 2009.

我們將在康乃狄克州布雷達開設拉爾夫·勞倫商店。我們在西好萊塢擁有一個令人難以置信的地點，我們將很快公佈更多相關資訊。我們在舊金山設計區的中心地帶擁有自己的原創畫廊，在那裡我們重新推出了整個品牌。嗯，2010 年，對吧？2009年。是的，2009年。

And it is going to be an incredible gallery to this new concept. But we've been working on this one for about four years. So we'll be ready to go.

這將是這個新概念的一個令人難以置信的畫廊。但我們已經為此工作了大約四年。所以我們就準備出發了。

And maybe just to confirm as a quick follow-up. So those three galleries are launching in conjunction or opening in conjunction with the launch of the brand extension in this ring.

也許只是為了快速跟進來確認一下。因此，這三個畫廊將與該領域品牌延伸的推出同時推出或開放。

Yes. The ones in Greenwich in San Francisco, for sure. The one in West Hollywood, we've got to still get our permits and get through system approvals and things like that. And hopefully, it will be pretty simple. We're going to -- it's going to be a two-stage piece where we're going to kind of remodel a location that we now own. And then Phase 2 of that once we open with the new concept.

是的。當然是舊金山格林威治的那些。對於西好萊塢的這家店，我們仍然需要獲得許可證並通過系統批准等。希望它會非常簡單。我們將——這將是一個分為兩個階段的項目，我們將對我們現在擁有的一個地點進行改造。一旦我們開啟新概念，就會進入第二階段。

We are building a restaurant beautiful -- it might be the most beautiful restaurant in all of Los Angeles. We're building an incredible courtyard restaurant that we think is going to be tremendous. It's going to add a restaurant in Los Angeles, which we don't have in a major market. And in Los Angeles, we're building like an ecosystem, right?

我們正在建造一家美麗的餐廳——它可能是整個洛杉磯最美麗的餐廳。我們正在建造一個令人難以置信的庭院餐廳，我們認為它將會非常出色。我們也將在洛杉磯增設一家餐廳，目前在主要市場還沒有這樣的餐廳。在洛杉磯，我們正在建立一個生態系統，對嗎？

We have our Melrose gallery that we built like 12 years ago that's fantastic in a great corner, beautiful rooftops. We've got a moderate gallery, a couple of blocks away from that. we'll have this new concept galleries that's a couple of blocks away to Melrose, and we're in the process of closing another deal for an outdoor gallery on the same street. So LA will have this really expansive or ecosystem. And I think our business in LA should go up 40% or more. it's a big, big, big market for us.

我們 12 年前建造了梅爾羅斯畫廊，它坐落在一個很棒的角落，有著漂亮的屋頂。我們有一個中等規模的畫廊，距離那裡只有幾個街區。我們將在距離梅爾羅斯幾個街區的地方開設這個新概念畫廊，而且我們正在就在同一條街上開設戶外畫廊達成另一項協議。因此洛杉磯將擁有這個真正廣闊的生態系統。我認為我們在洛杉磯的業務應該會成長 40% 或更多。這對我們來說是一個非常大的市場。

Max Rakhlenko, TD Cowen.

馬克斯·拉赫倫科 (Max Rakhlenko)，TD Cowen。

Great. So first, just on Europe. It's early, but with improvements in England and the strong sector Paris, can you share what you think those gallery can actually --

偉大的。首先，我們來談談歐洲。現在還為時過早，但隨著英國的進步和巴黎的強勁表現，您能否分享一下您認為這些畫廊實際上可以做些什麼--

We can't hear you quite well. I don't know if you're close enough to the feature, but it's hard to hear what you're saying.

我們聽不太清楚你的聲音。我不知道您是否離該功能足夠近，但很難聽清您在說什麼。

Apologies, but Europe starting to scale England, that galleries improving and Paris, obviously off to a strong start. How should we think about the revenues per market or per gallery over the medium term? And then with that, how are you thinking about the four-wall economics in Europe compared to US galleries as we just think about that 200 basis points headwind easing over the medium term?

抱歉，但歐洲開始向英國靠攏，那裡的畫廊正在不斷改進，巴黎顯然開局良好。我們應該如何考慮中期每個市場或每個畫廊的收入？那麼，當我們考慮中期內 200 個基點的逆風緩解時，您如何看待歐洲與美國畫廊的四面牆經濟？

Yes, I'd say, one, we'll update you periodically as things evolve here with Paris and as we get closer to London and Milan, I mean, it's going to be very quick here, right? Because we'll have two more big really incredible galleries. All with multiple hospitality concepts and so on and so forth. So I mean, this is -- think about this as how we would have liked to launch, but to get Paris and London, there was other locations we had to take and had to open.

是的，我想說，首先，隨著巴黎局勢的發展以及倫敦和米蘭局勢的臨近，我們會定期向您通報最新情況，我的意思是，這裡的進展會非常快，對吧？因為我們將擁有另外兩個真正令人難以置信的大型畫廊。所有這些都具有多種接待理念等等。所以我的意思是，這是——想想我們本來希望如何推出，但為了進軍巴黎和倫敦，我們也必須佔領並開設其他地點。

We faced lawsuits from landlords if we didn't open them. So hence why we wanted our first impression to be something kind of inspiring and unforgettable. That's why we did RH England really for conversation, not so much for commerce, but if you look at the numbers now, you go, hey, it looks like it might be pretty good. And we'll see what happens to that location when we opened London lending may actually amplify that location as opposed to cannibalize allocation.

如果我們不開放這些房間，我們將面臨房東的訴訟。因此，我們希望我們的第一印象能夠鼓舞人心、令人難忘。這就是為什麼我們舉辦 RH England 的真正目的是為了對話，而不是為了商業，但如果你現在看看這些數字，你會發現，嘿，它看起來可能相當不錯。我們將會看到，當我們開設倫敦貸款業務時，該地點會發生什麼情況，實際上可能會擴大該地點的規模，而不是蠶食分配。

Don't know. I mean, the Greater London market, it's just a huge market. The UK market is a huge market. And so Paris is any indication of -- I mean, we have a way bigger brand awareness in London than we do Paris. But in Paris, what we're seeing -- Stefan, is it 50% of the people know the RH brand in Paris? 50%. Shocking for us. We didn't know that. So lots of people familiar, lots of people waiting for us to come. And we're in a location that you can't miss us versus some of the other places.

不知道。我的意思是，大倫敦市場是一個巨大的市場。英國市場是一個巨大的市場。因此，巴黎就是一個很好的例子——我的意思是，我們在倫敦的品牌知名度比在巴黎高得多。但在巴黎，我們看到的是──史蒂芬，是不是有 50% 的人知道巴黎的 RH 品牌？50%。令我們震驚。我們不知道這一點。有很多熟悉的人，也有很多人在等我們到來。與其他一些地方相比，我們的位置是您不會錯過的。

I don't know, we're building a brand in the other ones. And even Madrid, which is pretty high populated city, that's pretty hot now, just not -- people aren't used to kind of a retailer even like us. I mean it's a really funny quick story is (inaudible) one of our curators and designers really great curator designer and has been with us for years and freelances with us, thing comes back to work for us.

我不知道，我們正在其他地方打造品牌。即使是馬德里，一個人口密集的城市，現在也很熱，只是人們不習慣像我們這樣的零售商。我的意思是，這是一個非常有趣的簡短故事，（聽不清楚）我們的一位策展人和設計師是一位非常棒的策展設計師，他已經和我們合作多年，並且和我們一起做自由職業者，他回來為我們工作。

If you kind of -- I don't know what she's exactly her title is now, but she finds the cool stuff hinges and Jen as a godson that is finishing up his masters in somewhere in New York and his girlfriend finishing up her Masters, is from Madrid. And so they were out in California. And godson said -- that I tell the story, but the godson said, oh, you've got to meet my godmother. She's actually into interior design.

如果你有點——我不知道她現在的頭銜是什麼，但她發現很酷的東西鉸鍊和 Jen 作為教子，正在紐約某處完成他的碩士學位，他的女朋友正在完成她的碩士學位，來自馬德里。於是他們來到了加州。教子說－－我講了這個故事，但是教子說，哦，你得見見我的教母。她實際上熱衷於室內設計。

And this young lady, 29 years old, I think, said, oh my God, you have to come to Madrid, the most amazing home store in the world open in Madrid and everybody is talking about it. And Jen said, really well, where is it? She didn't even connect the dot initially, and she gives her the address where it is since she goes, oh, well, I worked on that store.

這位 29 歲的年輕女士說，天哪，你一定要來馬德里，世界上最令人驚嘆的家居用品店在馬德里開業，每個人都在談論它。詹說，好吧，它在哪裡？她最初甚至沒有把兩者聯繫起來，然後她給了她地址，因為她想，哦，好吧，我在那家商店工作過。

That's our brand. That's RH. And his girl had no idea that we work, right? So I mean, it's not really the brand awareness as much. I think in Madrid will take us longer there, but we're really happy. When you look at the economics on the four-wall margins, I mean, some of these were not real big rents like Madrid and Madrid and Brussels.

這就是我們的品牌。那是 RH。而他的女朋友不知道我們在工作，對嗎？所以我的意思是，這其實並不是品牌知名度的問題。我認為在馬德里我們會花更長的時間，但我們真的很高興。當你觀察四面牆邊緣的經濟狀況時，我的意思是，其中一些並不是真正的高租金，例如馬德里、馬德里和布魯塞爾。

The one that economics are a little more challenging in Munich. We had to take that. We didn't we didn't extend those leases because we're sure what the volumes would look like. But I'd say a lot of them -- we know directionally kind of what we can do, what does it look like in 14,000 square feet. What does it look like 20,000 square feet, where might we do hospitality. We were going to do a restaurant in Madrid on the top floor, but it was kind of a smaller store.

慕尼黑的經濟學更具挑戰性。我們必須接受這一點。我們沒有延長這些租約，因為我們不確定數量會是多少。但我想說的是，我們非常清楚我們可以做什麼，以及在 14,000 平方英尺的空間裡它會是什麼樣子。它看起來有 20,000 平方英尺，我們可以在哪裡接待客人？我們原本打算在馬德里的頂樓開一家餐廳，但那是一家較小的商店。

And then we chicken out plan put it in. Now the team like clamoring for it, like our brand awareness to soundly everybody will come. They love our space. It was an old place. about 14,000 square feet, and we can put a cool little kind of kind of lay the teeth, I guess, don't a French kind of thing. But the same menu is perfectly cemented -- and I think they'll flip out and our team is super excited about it. So we're going to put a restaurant on that one.

然後我們就放棄了把它放進去的計畫。現在團隊都這麼叫囂著，希望我們的品牌知名度能響徹全場，大家都會來。他們喜歡我們的空間。那是一個古老的地方，大約有 14,000 平方英尺，我們可以在那裡放置一些很酷的東西，我想，不是法國的東西。但相同的菜單是完全固定的——我認為他們會瘋狂的，我們的團隊對此感到非常興奮。所以我們要在那裡開一家餐廳。

We have the ability to put a restaurant in Brussels long term. We've got the space there to do that. We may do that. And then we've got watch how Germany kind of scales here. As I said, we have the lowest brand awareness in Germany. They take longer. Maybe we just don't have the right location in units, I don't know. But we've got flexibility there. But I think the four walls when you kind of project them out, they kind of look like the US.

我們有能力在布魯塞爾長期開設一家餐廳。我們有足夠的空間來做這件事。我們可能會這麼做。然後我們要看看德國在這裡的規模如何。正如我所說，我們的品牌知名度在德國是最低的。他們需要更長的時間。也許我們只是沒有找到正確的單位位置，我不知道。但我們在這方面具有靈活性。但我認為，當你把這四面牆投射出去時，它們看起來有點像美國。

So like if Paris -- I mean, Paris says anything directionally like we think it's going to do. I mean it's going to be fantastic. I mean we had a little bit more operating costs and something like that. We got to have guards out of the gates and things like that. You've got to walk down 195 feet to get to the front door and you got to figure out how all that works and especially in the weather gets tougher. But I think it's now starting to -- the dots are starting connect.

所以，如果巴黎——我的意思是，巴黎按照我們的想法做出任何有針對性的舉動。我的意思是這將會非常棒。我的意思是我們的營運成本稍微增加了一些，諸如此類。我們必須派警衛守衛大門等等。你必須走下 195 英尺才能到達前門，你必須弄清楚這一切是如何運作的，特別是在天氣變得更加惡劣的情況下。但我認為現在一切開始——各個點開始連結起來了。

We have enough data. We're seeing how things are ramping. And we're starting to execute. I mean what would you give us an execution from like the back end, having the right goods in the right fab. Like there are so many rules and things we had to get around what fabrics are and you use what phones, what lighting, what it's like we're kind of bundling around. Like I'd say, give it a C today. What do you guys think?

我們有足夠的數據。我們看到事情正在如何發展。我們正在開始執行。我的意思是，您會給我們什麼樣的後端執行方案，在正確的工廠裡提供正確的產品。就像我們必須遵守許多規則和事項，例如使用什麼布料、使用什麼手機、什麼燈光、我們如何進行捆綁。就像我說的，今天給它一個 C。大家覺得怎麼樣？

C plus.

C 加。

Maybe a C plus. It might be D plus. I mean so -- D plus. But we had a great session, a couple of sessions with them the last few times there just had another great session with them. like they -- we know what we need to do. We loaded up both plans. We took all our merchants there. We brought in all the leaders from all the galleries, all our best designers. We listened, we learned and -- if we just go from like a B plus, C minus to be in execution, it's probably worth 25 points.

也許是 C 加。可能是 D plus。我的意思是——D+。但是我們進行了一次很棒的會議，最近幾次與他們進行了幾次很棒的會議。就像他們一樣——我們知道我們需要做什麼。我們加載了這兩個計劃。我們把所有的商人帶到了那裡。我們邀請了所有畫廊的所有領導者以及所有最好的設計師。我們傾聽、學習，如果我們從 B 加、C 減的水平提高到執行水平，那麼可能值 25 分。

If we go to an A, it's probably 50 points. And we'll get there. It's just -- it's a little hard when you only have a few small stores and you need to kind of take people's attention off certain things to be able to execute. But now I mean, the great thing is Paris now creates massive visibility and urgency. And that's when we took everybody over there.

如果拿到 A 的話，大概就是 50 分。我們會到達那裡。只是——當你只有幾家小商店時，這有點困難，你需要將人們的注意力從某些事情上轉移開才能執行。但現在我的意思是，最棒的事情是巴黎現在創造了巨大的知名度和緊迫性。就在那時，我們把所有人都帶到了那裡。

We were there for eight days, seven days, many nights we were going home when the sun came up. We were working with the teams. Everybody is alongside each other, bringing this thing to life and it was a great, great experience for bringing our headquartered leaders together with our field leaders and building a great team.

我們在那裡待了八天、七天，很多個夜晚，太陽升起的時候我們就回家。我們正在與這些團隊合作。每個人都並肩作戰，將這個專案變為現實，這是一個非常棒的經歷，讓我們的總部領導和現場領導聚集在一起，建立一支優秀的團隊。

Got it. That's super helpful. And then in the 10-Q, you discussed how the primary driver of the gross margin increase was due to increased margins in the core brand -- just any more color on what drove that? And then is the takeaway that we should consider is that promotions should continue to normalize ahead and the tariffs are just the major headwind? Or how should we take the learnings as we think about the rest of the year?

知道了。這非常有幫助。然後在 10-Q 中，您討論了毛利率增加的主要驅動力是由於核心品牌利潤率的提高——您能詳細說明一下推動這一增長的因素嗎？那麼我們應該考慮的要點是，促銷活動應該繼續正常化，而關稅只是主要的阻力嗎？或者，當我們思考今年剩餘的時間時，我們該如何吸取這些教訓？

Yes, the margin expansion, I mean, it's a reflection of what we were doing last year and the position of the product margin and the activity last year as some of the markdown activity last year. So year over year, we saw margin expansion.

是的，利潤率的擴大，我的意思是，它反映了我們去年所做的事情以及產品利潤率和去年的活動以及去年的一些降價活動。因此，與去年同期相比，我們的利潤率有所擴大。

Yes. And we absorbed a hit on tariffs. It's much smaller. I mean if the tariffs really start getting in Q3 and Q4 and into next year. And again, fingers posters not another layer coming, but Sari said, not the strongest as thesis that survives the one most adaptable to change. And we got to be the most adaptable in innovation and invention, I think, in our industry.

是的。我們也承受了關稅的衝擊。它小得多。我的意思是，如果關稅真的在第三季、第四季以及明年開始徵收。再一次，手指海報不會再出現另一層，但薩裡說，不是最強的論點，而是最能適應變化的論點。我認為，在我們的產業中，我們在創新和發明方面必須具有最強的適應能力。

And so we'll figure out no matter what happens. But there's going to be gross margin headwinds from tariffs coming. You just can't raise prices fast enough and you can't -- there's only some which room our manufacturing partners have. You don't want to blow them up right? So you've got to walk a tie. It's very different than China. I think that -- maybe that's the other thing that maybe is misunderstood. I mean China was kind of funded.

所以無論發生什麼，我們都會弄清楚。但關稅的實施將對毛利率造成不利影響。你只是無法足夠快地提高價格，而且你不能——我們的製造合作夥伴只有一些空間。你不想炸毀它們吧？所以你必須走一條領帶。這與中國非常不同。我認為──這也許是另一件被誤解的事。我的意思是中國得到了某種資助。

I think some of China's factories got some help from the government to deal with the tariffs. That's not really happening in Vietnam. It's not happening in Indonesia. They're not China. They're not big, strong, well-developed countries like China. So it's going to hurt people. Like there's going to be challenges there. But it is what it is. So it provides the depth and overcome.

我認為中國的一些工廠得到了政府的一些幫助來應對關稅。但這種事在越南並沒有發生。印尼並沒有發生這樣的事情。他們不是中國。它們不是像中國這樣的大國、強國、已開發國家。所以這會傷害到別人。好像那裡將會面臨挑戰。但事實就是如此。因此它提供了深度和克服。

Michael Lasser, UBS.

瑞銀集團的麥可拉瑟。

So Gary, the investment community is very focused on the degree to which there's discounting and promotions in your messaging, the results in the quarter suggest that you've been able to overcome it with your profitability. But with that being said, is it driving incremental sales? And is the thesis that you will be able to pull back on some of this discounting oriented messaging as the housing market improves and the natural rate of demand simply increases and offset we're seeing done right now?

所以加里，投資界非常關注你們資訊中折扣和促銷的程度，本季的結果顯示你們已經能夠透過獲利來克服這個問題。但話雖如此，它能推動銷量成長嗎？您是否認為，隨著房地產市場的改善以及自然需求率的上升和我們目前看到的抵消作用，您將能夠撤回一些以折扣為導向的信息傳遞？

Well, here to start, Michael, with -- in this world of furniture, at the luxury end, it's all in sale, okay? At the highest end in the top design showrooms, interior designers, architects, all get 30% or 40% off. So our model has a membership model with a model to kind of smooth that out and be competitive. So this is not like Chanel, Hermes, where they burn the markdowns or throw them out or whatever they do, right, because they have such ridiculous margins.

好吧，邁克爾，首先，在這個家具世界裡，在奢侈品領域，一切都在出售，好嗎？在頂級設計展廳的最高端，室內設計師、建築師可享 30% 或 40% 的折扣。因此，我們的模型有一個會員模型，並有一個模型可以使其更加平滑並具有競爭力。所以這不像香奈兒、愛馬仕那樣，他們會把降價商品燒掉或丟掉或做其他什麼，對吧，因為他們的利潤率太高了。

This is not fashion. And if people confuse it with fashion, they're going to miss the whole game, okay? We're also in the third year of the worst housing market I've seen in my 38 years in this industry. 38 years, I've never seen a third year like this, and I've never seen one like this. So you could decide to not promote. I mean, some people are telling you they're not promoting and they are promoting.

這不是時尚。如果人們將其與時尚混淆，他們就會錯過整個遊戲，好嗎？我們也正處於房地產市場最糟糕的第三年，這是我從業 38 年來見過的最糟糕的房地產市場。 38 年來，我從未見過像這樣的第三年，也從未見過像這樣的第三年。因此您可以決定不推廣。我的意思是，有些人告訴你他們沒有在推銷，但他們卻在推銷。

So I don't even know how anybody publishes press when you know who they are, like, oh, they're not promoting, like look at their emails, they're promoting three weeks. And it's disguising. It is like not storewide. Okay, whatever. It's got to be the highest percentage of their business is being done on promotion. It's just -- if you're selling furniture, you get away with some of the other categories like frames and other stuff like that.

所以我什至不知道當你知道他們是誰時，他們是如何發布新聞的，例如，哦，他們沒有進行宣傳，看看他們的電子郵件，他們正在宣傳三週。而且它還具有偽裝性。就像不是全店性的一樣。好吧，隨便。他們的業務中最高比例肯定是透過促銷來實現的。只是——如果你銷售家具，你可以銷售一些其他類別的產品，例如框架和其他類似的東西。

And those are bigger -- for other people's businesses, if they're a home furnishings kind of driven business, and have a lower furniture mix, we're 80% furniture. The highest probably mix of furniture of anybody you can see with. We eliminated Christmas. We eliminated holidays. We don't sell Halloween plays and all that stuff that renders the furniture less value.

而且這些規模更大——對於其他人的企業來說，如果他們是家居裝飾類的企業，家具結構較低，而我們的家具結構佔 80%。這可能是您所能看到的家具中最高等級的組合。我們取消了聖誕節。我們取消了假期。我們不賣萬聖節戲劇和所有那些降低家具價值的東西。

But furniture is an industry that at the highest level, does not sell at full price. It doesn't. So people just get over it. You don't understand the furniture industry at the luxury level. And unless you just want to f****** go bankrupt, excuse my language, in a market like this, stand there and be right us and saying, I'm not promoting, good luck. Good luck. Go for it. Tell me us not doing it, Michael. Who's not promoting?

但家具是一個最高層次上不以全價出售的行業。事實並非如此。所以人們就不再去想它了。您不了解奢侈品級別的家具產業。除非你只想破產，請原諒我的語言，在這樣的市場中，站在那裡對我們說，我不是推銷員，祝你好運。祝你好運。大膽試試吧。告訴我我們不這樣做，麥可。誰不做推廣？

It's hard to name names right now, Gary. But it's a great segue into my second question, which is there is some skepticism around the margin outlook in the back half of the year. You're guiding below what was expected for the third quarter and well above for the fourth quarter. Can you give us more detail on what underlies those margin expectations and build the market confidence that those are realistic?

加里，現在很難說出名字。但這很好地引出了我的第二個問題，即人們對今年下半年的利潤前景有些懷疑。您對第三季的預期低於預期，但對第四季的預期則遠高於預期。您能否向我們詳細介紹這些保證金預期背後的原因，並建立市場對這些預期現實性的信心？

Jack, do you want to take that?

傑克，你想拿走那個嗎？

Well, Michael, we did -- we gave back -- like at H2 guidance, we didn't give out quarterly guidance. So if you're referring to how the analyst community is the business but I met saying what I heard Michael, maybe to clarify is how it changed versus the prior guidance. Is that what you asked or did I mishear?

好吧，邁克爾，我們確實——我們回饋了——就像 H2 指導一樣，我們沒有給出季度指導。因此，如果您指的是分析師社群如何開展業務，但我遇到了說我聽到的邁克爾，也許需要澄清的是它與之前的指導相比是如何變化的。這是你問的還是我聽錯了？

I'm just asking for what drives those or underlie those check. So if you could give us a sense for what you're expecting? Is it that tariffs are going to be a headwind in 3Q, but you think price by the time you get to has said you'll see a significant amount of leverage in the fourth quarter?

我只是想知道是什麼推動了這些檢查或構成了這些檢查的基礎。那麼您可以告訴我們您的期望嗎？是不是說關稅將成為第三季的阻力，但您認為到第四季時價格已經顯示出相當大的槓桿作用？

I think --

我認為--

Yes, Michael, you're talking about operating income.

是的，邁克爾，你談論的是營業收入。

Yes, sir.

是的，先生。

Okay. Yes. Look, just as a reminder, we have seasonality in our business as it relates to advertising expense and the books that get expensed when there's our (inaudible). So that's one factor that I'd point out. I don't -- we're not here to point out pricing actions or timing of those and those kind of offsets. That's all embedded in our guidance. But we're not commentary where you're making.

好的。是的。提醒一下，我們的業務有季節性，因為它與廣告費用和書籍費用有關，當有（聽不清楚）。這是我要指出的一個因素。我不——我們在這裡不是為了指出這些定價行為或時機以及這些抵銷措施。這些都已包含在我們的指導中。但我們不會對您所做的事情發表評論。

Steven Zaccone, Citi.

花旗銀行的史蒂文‧扎科內 (Steven Zaccone)。

I wanted to go up with that pricing comment and just kind of understand, Gary, you mentioned about pricing in the industry because of tariffs. What's your assessment of pricing from an industry perspective, does it get worse as we get into the back half of the year in terms of increases because of these tariffs? And do you think the second half is when we see the peak? Or is that kind of carry it to 2026?

我想提出關於定價的評論，並且只是有點理解，加里，你提到了由於關稅而導致的行業定價。從產業角度來看，您對定價有何評價？由於這些關稅，到今年下半年價格上漲的情況是否會變得更糟？您認為下半年會是我們的巔峰嗎？或者說這會延續到 2026 年？

Yes. Look, I listen to everybody's conference calls, right, that's in our industry. And I don't think anybody has really addressed the tariffs with transparency. I think they're all dancing around it. And is waiting for somebody to tell the truth and maybe where the first one is telling the truth. I don't think anybody is getting better pricing than we do. I don't think anybody is mitigating more than we are. No one's got the same leverage as we do for a single brand.

是的。你看，我聽了每個人的電話會議，對的，那是在我們這個行業。我認為沒有人真正透明地解決關稅問題。我認為他們都在圍繞它跳舞。等待某人說出真相，也許第一個人就說出了真相。我認為沒有人能獲得比我們更好的定價。我認為沒有人比我們減輕了更多負擔。沒有人能像我們一樣對單一品牌有如此大的影響力。

And so I think everybody has got to take price in the second half. I think there's going to be big furniture inflation in the second half everywhere. I don't know how anybody gets around it, unless you're some little tiny person making all your stuff in America. But then again, they're going to get hit because all the parts are coming for -- all kinds of the pieces and parts are coming from places, like fabrics coming out of Asia for a lot of those people.

所以我認為每個人都必須在下半年承擔代價。我認為下半年各地都會出現大幅家具通膨。我不知道有人如何解決這個問題，除非你是一個在美國製造所有東西的小人物。但話又說回來，他們還是會受到打擊，因為所有零件都來自不同的地方，例如很多人需要的布料都來自亞洲。

And like other people that might be saying they're making furniture in America, and hopefully, this is what the investigation is about is people that are having all the wood made and finished in Asia and then kind of shifted in a flat pack to America and they're actually screwing it together, and they're saying assembled in America or something like that?

就像其他人可能會說他們在美國製造家具一樣，希望調查的​​重點是那些將所有木材在亞洲製造和加工，然後以平板包裝的形式運往美國，然後他們實際上將它們擰在一起，並說在美國組裝或諸如此類的人？

And they think they're going to not get tariffed. I mean there might be some -- I was trying to think like what triggered this next investigation of the tariffs. And the only thing I can think about is something like that. That does go on. And so there's probably people out there that are trying to avoid tariffs some way, bringing it in unassembled or doing something.

他們認為他們不會被徵收關稅。我的意思是可能有一些——我試圖思考是什麼引發了下一次關稅調查。我唯一能想到的就是類似這樣的事。那確實在繼續。因此，有人可能正在嘗試以某種方式避免關稅，例如以未組裝的形式進口或採取其他措施。

So it's parts from other places. And maybe that's where you're going to see the new tariffs coming. But I think everybody's got to take pricing. There's just no way. I mean your margins are going to get killed.

所以它是來自其他地方的零件。也許這就是你將會看到新關稅出台的地方。但我認為每個人都必須考慮定價。根本沒有辦法。我的意思是你的利潤將會被蠶食。

Yes, understood. Then a follow-up on the international margin question that Max had. So if we think about the 200 basis points drag this year, -- does that ease next year? Or should we be thinking London, opening in Milan are still going to have some pretty heavy start-up costs?

是的，明白了。然後跟進 Max 提出的國際保證金問題。因此，如果我們考慮今年 200 個基點的拖累，那麼明年這種情況會有所緩解嗎？或者我們應該認為在倫敦、米蘭開業仍將需要相當高昂的啟動成本？

No one has heavy start-up costs. Yes. I mean we -- it will all depend where the ramp in Paris goes, which will inform the ramp in London, which should be meaningfully higher than Paris. And Milan, I don't know where Milan actually is going to fall probably little less in Paris, but it's bigger. So it might do more.

沒有人有沉重的啟動成本。是的。我的意思是，這一切都取決於巴黎的坡道在哪裡，這將影響倫敦的坡道，而倫敦的坡道應該比巴黎的坡道高得多。至於米蘭，我不知道米蘭實際上會跌到什麼程度，可能比巴黎跌得少一點，但要大一些。因此它可能會發揮更多作用。

I mean, it is a big market. So we'll see. I mean, (inaudible) which is the biggest design show in the world. 500,000 people go to Milan for (inaudible). It is the world of design goes there for a week. And we're opening on that week. Any of these next two parties, you don't want to miss.

我的意思是，這是一個很大的市場。我們拭目以待。我的意思是，（聽不清楚）這是世界上最大的設計展。 50萬人去米蘭參加（聽不清楚）。這是設計界去那裡待一週的時間。我們將於那週開幕。接下來的這兩個聚會您一定不想錯過。

Brian Nagel, Oppenheimer.

奧本海默的布萊恩·納格爾。

Thanks for slipping me in here. So a couple of questions. First, I want to make sure I understand the dynamic correctly. So if you look at an inventory growth perspective, it seems like you're managing inventory is much better here. We've seen growth moderate significantly in the second quarter. And then I guess that dynamic would help to drive cash.

謝謝你讓我來到這裡。有幾個問題。首先，我想確保我正確理解了動態。因此，如果從庫存成長的角度來看，似乎這裡的庫存管理要好得多。我們看到第二季的成長明顯放緩。然後我想這種動態將有助於推動現金。

But again, I just want to make sure I've seen that correctly. But the question I have is as you think about managed inventories better, does that potentially become a headwind to sales if your inventories are spider through the back half of the year or whatever?

但我再次強調，我只是想確保我看得正確。但我的問題是，當您更好地考慮管理庫存時，如果您的庫存在下半年或其他時間堆積如山，這是否有可能成為銷售的阻力？

Yes. Look, there's -- everything is worth something, right? So it all depends where the housing market goes, what offsets you're going to have, how much like our new concept is going to be worse. I think this is the biggest new thing we've ever done. I think it's going to be bigger than moderate significantly. It deals with the biggest part of the market.

是的。瞧，每樣東西都有價值，對吧？所以這一切都取決於房地產市場的走向、將會有什麼樣的抵消，以及我們的新概念會有多糟糕。我認為這是我們做過的最大的新鮮事。我認為它將比中等規模大得多。它涉及市場的最大部分。

Yes, we've got new galleries and things happening. We've got big galleries happening in London and Milan I mean we got outdoor galleries coming in at new concept galleries coming and you got compounds coming. I mean there's just a lot that we've invested into, time and capital to set the company up for the next 10 years. That's how we think about this next move.

是的，我們有新的畫廊和新活動。我們在倫敦和米蘭都有大型畫廊，我的意思是我們有戶外畫廊、新概念畫廊和複合畫廊。我的意思是，我們已經投入了大量的時間和資金來為公司未來 10 年的發展做好準備。這就是我們對下一步行動的想法。

If we do really well -- and I mean like I can tell you, tariff. We're getting a lot of inbounds on, hey, do you want to open it up to date, do you want to open it to buy. Can we partner license your brand? Can we do this or not? When you see something like Paris that you've never seen anywhere in the world by anybody at any level, there are buyers of that, meaning whether it's developers, whether it's someone that wants that run the brand for us there.

如果我們做得非常好——我的意思是我可以告訴你，關稅。我們收到了很多來電，嘿，你想打開它了解最新情況嗎，你想打開它購買嗎。我們可以與您的品牌合作授權嗎？我們能不能做到這一點？當你看到像巴黎這樣的東西，你在世界任何地方都從未見過，任何人，任何層次的人，都有買家，無論是開發商，還是想要在那裡為我們經營品牌的人。

And maybe in the Middle East, we do a low capital kind of deal. And we take some percentage off the top and we sell the rights for a big chunk of money for the next 20 years, or we run it ourselves, and we want the sales growth and so on and so forth. And we're willing to put in the cap we are creating optionality. The key is breakthrough, breakthrough and become one of the most admired brands in the world in this next period by doing what we're doing in Europe.

也許在中東，我們做的是低資本交易。我們從中抽取一定比例，然後出售未來 20 年的版權，賺取一大筆錢，或者我們自己經營，我們希望銷售額增長等等。我們願意投入我們正在創造的可選性的上限。關鍵是要突破，突破，並透過像我們在歐洲所做的事情，在下一個時期成為世界上最受尊敬的品牌之一。

And it creates all kinds of options. When we go to Asia, what are we going to do? Like we've had people trying to get us to come to the Middle East for 12, 15 years, come to Asia for the last 10 years. It's like we wanted to do it in the right order. And yes, somewhere along the line, I heard someone say that (inaudible) was asked, how do you build a brand in China? And his answer was, you build great stores in Paris, London and New York.

它創造了各種各樣的選擇。當我們去亞洲時，我們要做什麼？就像有人試圖讓我們在過去 12 到 15 年內來到中東，在過去 10 年內來到亞洲。就像我們想按照正確的順序去做一樣。是的，在某個時候，我聽到有人說（聽不清楚）被問到，如何在中國打造品牌？他的回答是，你可以在巴黎、倫敦和紐約建造大型商店。

So we did a little backwards, right, because we come from Americas. So we said the first thing we had to do is build the bridge to Europe, and we built RH New York. And we got a lot of visibility there and a lot of European clients coming over and they know us. And we wanted to do Paris and London next. But to get Paris and London, we had open things in a different order.

所以我們做了一些倒退，對吧，因為我們來自美洲。所以我們說我們要做的第一件事就是建造通往歐洲的橋樑，然後我們就建造了 RH 紐約。我們在那裡有很高的知名度，很多歐洲客戶過來並且了解我們。我們接下來想去巴黎和倫敦。但為了進軍巴黎和倫敦，我們按照不同的順序開放。

But now that Paris and London are coming and then Milan is coming, we're going to know a lot more. I mean I think the brand heat is going to exponentially build. I think the quality of work that we're doing. I mean I really -- if you want to -- I said this when we first built like I think it was a lane or something. I said put down your spreadsheet and go to Atlanta.

但現在巴黎和倫敦即將到來，米蘭也即將到來，我們將會了解更多。我的意思是，我認為品牌熱度將會呈指數級增長。我認為我們所做工作的品質很好。我的意思是，如果你願意的話，當我們第一次建造它時我就說過，我認為它是一條小路或什麼東西。我說放下你的電子表格然後去亞特蘭大。

If you want to know us, go and see us, right? We all have 6 senses, but our sight is our dominant sense, and it drives 80% of our behavior, our perception and our education. If you really want to go know where RH is going, get on a plane and go see Paris and then give us a call, or just fly right back to the Center of Innovation. And really kind of see what we're doing. Because what we're about to do next is the greatest work in the history of this company, and it might be some of the greatest work in the history of any part of the retail industry.

如果你想了解我們，就去看我們，對嗎？我們都有六種感官，但視覺是我們的主要感官，它驅動著我們 80% 的行為、感知和教育。如果您真的想知道 RH 的發展方向，請搭飛機到巴黎看看，然後給我們打電話，或直接飛回創新中心。並且真正了解我們在做什麼。因為我們接下來要做的是這家公司歷史上最偉大的工作，而且它可能是零售業歷史上任何領域最偉大的工作之一。

Not trying to boast. At the end of the day, it's not what we say or think is Jane Axon say, it's what we do that defines us. So go see the work. That's what's going to define us. you'll understand it. I mean at (inaudible). Steve, you were there, a few other people where they're good. I mean I think everybody was there is like holy cow, I had no idea what was coming.

並不是想吹噓。歸根究底，定義我們的不是簡·阿克森所說的內容或想法，而是我們的所作所為。所以去看看作品吧。這就是定義我們的。你會理解的。我的意思是（聽不清楚）。史蒂夫，你和其他幾個人都在那裡，他們都很優秀。我的意思是，我認為在場的每個人都感到很驚訝，我不知道接下來會發生什麼。

When you see the world of RH and what we did there to communicate to the world who we are to see our body of work around the world and all of our places presented in this incredible sexy salon style with a bar, you can order food, you can take client meetings there and people walking through. It's New York or Boston or Chicago all the great work we've done everywhere presented beautifully and beautiful elders walls with picture lighting and then you've got these giant French (inaudible) with, I don't know how big the TDs are like giant TDs and beautiful giant gold frames, with videos that you watch what the making of RH Boston, the making of RH New York, you can watch videos on the designers on the artisans.

當你看到 RH 的世界以及我們在那裡所做的事情時，你就會向世界傳達我們是誰，看到我們在世界各地的工作，以及我們所有的場所都以這種令人難以置信的性感沙龍風格呈現，並設有酒吧，你可以訂購食物，你可以在那裡與客戶會面，人們可以穿過。無論是在紐約、波士頓還是芝加哥，我們在各地完成的所有偉大工作都呈現出美麗的景象，美麗的長者牆配有圖片照明，然後你就會看到這些巨大的法國（聽不清），我不知道 TD 有多大，就像巨大的 TD 和美麗的巨型金色框架，通過視頻，你可以觀看關於 RH 波士頓的製作過程、RH 觀看紐約的製作過程，你可以觀看紐約設計師的視頻。

It's a physical and digital conversion into the brand. It's so full. I mean our biggest worry people are going to go, what is this, and no one would be there. But a night party, it was pack. -- room. We had our first diner adverse two restaurants, and that's kind of a semi third to have a bar, we have to serve food there. So we've got a menu then the first meal we serve is in the world of ore.

這是品牌的實體和數位轉換。太滿了。我的意思是我們最擔心的是人們會去那裡，這是怎麼回事，卻沒有人在那裡。但晚上聚會時，房間裡擠滿了人。我們的第一家餐廳與兩家餐廳競爭，其中三分之一設有酒吧，我們必須在那裡提供食物。所以我們有菜單，然後我們提供的第一頓飯是在礦石世界中。

And everybody you've seen it is like, oh my God, like essentially people don't know us like we had no idea -- it's just we have the volume work that no one else has in the world from an architecture, interior design and landscape architecture point of view. It gives us great credibility in our interior design business. which is now morphing into an interior architecture business and a landscape architecture business, right, in our bespoke part of that business, which is one of the fastest-growing parts of the business is doing these super high-end premium, complete REITs.

你所見過的每個人都會說，天哪，基本上人們不認識我們，就像我們根本不知道一樣——只是從建築、室內設計和景觀建築的角度來看，我們擁有世界上其他人所沒有的大量作品。它為我們的室內設計業務帶來了極大的信譽。現在，室內設計業務正在轉變為室內建築業務和景觀建築業務，在我們的客製化業務中，這是成長最快的業務之一，正在做這些超高端、完整的房地產投資信託基金。

And we had already -- before we even got to Paris, we had done an incredible complete metamorphosis of apartment in Paris for a US customer, transformed it completely complete new interior architecture, fiber places, everything. So that's the other thing to really understand what we're doing in tier design. Like we are the biggest interior design residential interior design platform in the world today, and we're investing in it in a meaningful way, right?

甚至在抵達巴黎之前，我們就已為一位美國客戶對其位於巴黎的公寓進行了徹底改造，徹底改造了室內建築、光纖空間等一切設施。所以這是真正理解我們在層級設計中所做的事情的另一件事。就像我們是當今世界上最大的室內設計住宅室內設計平台，並且我們正在以有意義的方式對其進行投資，對嗎？

In Paris, it is a freestanding building on our property that we've built. So our Anterior design has its own building its own entry and tax it might be the best interior design office anywhere in the world. And it sends to people that we want on the team like we're prepared to invest to get the best people in the world. We're not just a retailer, we're something that hasn't been done before. And when it all comes together, I think it's going to make a lot of sense.

在巴黎，這是我們在自己的土地上建造的一座獨立式建築。因此，我們的 Anterior 設計擁有自己的建築、自己的入口和稅收，它可能是世界上最好的室內設計辦公室。這也向我們想要加入團隊的人才傳達了這樣的訊息：我們準備好投資以招募世界上最優秀的人才。我們不僅是一家零售商，我們還在做一些前所未有的事情。當所有一切都結合在一起時，我認為它會變得非常有意義。

Great. I maybe ask just a quick follow-up. And I think maybe for Jack. But just with regard to tariffs. So should we expect that RH is in mitigation efforts, particularly price increases as a tariff fit? Or you were able to, in some instances, start adjusting prices before the actual tariff is hitting you?

偉大的。我可能只是想快速詢問一下後續情況。我想也許對傑克來說是這樣。但僅涉及關稅。那麼，我們是否應該期待 RH 採取緩解措施，特別是提高價格以適應關稅？或者在某些情況下，您是否能夠在實際關稅對您造成影響之前開始調整價格？

We also did the membership thing.

我們還做了會員的事情。

I think it's a bit of both to be honest. I mean, it's obviously -- we want to be very judicious about price increases. And as Gary talked about, on the one hand, you're protecting margin, but on the other hand, you can't you want to also be thoughtful about the revenue of the business and the impact of that.

老實說，我認為兩者都有一點。我的意思是，顯然，我們希望對價格上漲採取非常明智的態度。正如加里所說，一方面，你要保護利潤，但另一方面，你也必須認真考慮業務收入及其影響。

So we're very strategic and thoughtful and we've been doing this ever since we had to deal with the 2018 tariffs or 2017 -- or 2018 tariffs in initial ones in China. So we'll keep doing -- keep writing our playbook. .

因此，我們非常具有策略性和深思熟慮，自從我們必須應對 2018 年關稅或 2017 年（或 2018 年中國最初的關稅）以來，我們一直在這樣做。因此我們會繼續做下去——繼續編寫我們的劇本。。

That concludes our question-and-answer session. I will now turn the call back over to Gary Friedman for closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給加里·弗里德曼，請他作最後發言。

Great. Well, thank you, everyone, for your interest. It is interesting times in our industry, but even more interesting times for our company. And I just want to congratulate everybody's proud organization. Even though you might not be in Paris or you weren't in Paris, everybody had a hand at it. Everybody has worked hard to put this company in a position to open what we believe is the most exciting immersive retail experience at any level in the world today.

偉大的。好吧，謝謝大家的注意。這是我們行業有趣的時期，但對我們公司來說更是有趣的時期。我只想向大家為之驕傲的組織表示祝賀。即使你可能不在巴黎，或者你不在巴黎，每個人都參與其中。每個人都竭盡全力讓這家公司能夠提供我們認為是當今世界上任何層面上最令人興奮的沉浸式零售體驗。

And we couldn't be more proud. I told the team, I said, it's only for a moment. We kind of broke through and post our head up at the top of the luxury mountain. Now except West to just plant a flag up there, right? And there's a lot more work to do. But they know the people at the top I think they now know the potential that we have, the work that we've demonstrated that we can do. And I think we've earned the respect and they expect this to come.

我們對此感到無比自豪。我告訴團隊，我說，這只是暫時的。我們算是取得了突破，站在了奢華的頂峰。現在除了西方之外，只要在那裡插一面旗幟就可以了，對嗎？還有很多工作要做。但他們了解高層人士，我認為他們現在知道我們的潛力，以及我們已經證明可以做的工作。我認為我們已經贏得了尊重，他們也期待著這一點。

So we've got a lot of work to do to really plant that flag and to build one of the most admired brands in the world. But the momentum we have, kind of the ceiling we broke through, it peaked up. And it was a proud moment for this company. And I want to just thank everybody on every level for the -- just the effort that everybody is putting through in these three difficult years that we've had.

因此，我們還有很多工作要做，才能真正建立這面旗幟，並打造出世界上最受尊敬的品牌之一。但我們的勢頭，我們突破的上限，已經達到了頂峰。這對該公司來說是一個值得驕傲的時刻。我只想感謝各層面的每個人，感謝大家在這三年的艱困歲月中所付出的努力。

Yes, the clouds will break as Warren Buffet said and the sun will come out again and when it does, we'll be there. So thank you, everyone, for your interest. Thank you, RH for your leadership and your hard work and for living and breathing our values. Our time has come. So thank you.

是的，正如華倫‧巴菲特所說，烏雲終將散去，太陽終將再次出現，而當太陽再次出現時，我們就在那裡。謝謝大家的關注。謝謝 RH 的領導和辛勤工作，以及您實踐和實踐我們的價值觀。我們的時代已經來臨。所以謝謝你。

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。