How long did people wait to get a Tesla, how long people wait? How long they waited to get the new Roadster or the cyber truck? So it’s — you’ve got to kind of think about what are the long-term things you’re trying to do. We’re trying to shape the brand in a way that’s — brand has never been shaped before. Introduce the brand to Europe, where the luxury brands are, and create the right conversation with the right people and create that right halo for this whole thing to then as you introduce it in the other places, there’s an excitement about it. They’ve heard about it, it’s coming, they’ve seen it, posted, they’ve seen it written about. I mean the press we’ve gotten on it was just incredible. It’s multiple times higher than any gallery we’ve ever opened because it’s something nobody’s seen before and it’s given the world something to talk about and we have really interesting and high-profile people showing up there, setting up appointments there and wanting to do collaborations with us.
Some of the highest-end car brands in the world want to do car shows on our property and things like that. I mean, and so I think it’s just going to open up all kinds of new opportunities and new conversations and new perceptions and possibilities for the RH brand. But it’s not the Gallery I would use to kind of say, oh, let me extrapolate what happens here. We don’t have anything like this in America. We don’t have any kind of location like this that’s similar to this at all. So — and that’s why I think it’s getting so much conversation, but it’s not the most convenient place to shop. We knew that going in. So this is really to kind of introduce the brand, create the right conversations, let it build, let’s go through a winter, let’s go through a cycle, let’s see what we have to do.
And remember, we haven’t mailed a book yet in the UK. So we’ve got very little advertise. We’ve got all the press, everyone’s written about it and then we run a few ads on some magazines and stuff like that. And — so I think in all the other locations we’re opening are highly visible in the major markets, lots of traffic around them. More what I’d call typical from a location point of view. Not typical from a competitive or market point of view. They’re going to be extraordinary galleries, some more extraordinary than others and some of the markets are more important, in some locations we took some of the Abercrombie locations that we might not have taken to get London and Paris because they’re such incredible locations. And so there’s some things that are smaller that we’re not investing much capital to but we’re going to open and then we’re going to learn.
But I’d say, you can’t use this as a proxy, it’s not there — I don’t know if we’ll ever build something like this again. We may, but it is not what anybody would typically do, but that’s why everybody is so interested in it and that’s why they’re writing about it and that’s why they’re talking about it and that’s why the quality of people that are going there are people who just probably wouldn’t — you might not have had them come had you opened something ordinary. But they’re coming because it’s extraordinary. And — but it’s just one small piece of a much bigger composition and puzzle we’re putting together just to build the RH into a truly dominant successful luxury design brand.
Steven Zaccone: Second part?
Gary Friedman: The international opening cadence. Yeah, I think this is a start from the opening cadence. I like our start — I think, it is moderately aggressive I think that we’ve got planting the lot of flags in important places and really dominant fantastic real estate and we’re super excited about it. So — and I think we’re going to learn a lot in the next three years.
Steven Zaccone: Thank you very much.
Gary Friedman: Sure.
Operator: Your next question comes from the line of Brian Nagel from Oppenheimer. Please go ahead.
Brian Nagel: Hi, good afternoon.
Gary Friedman: Hi, Brian.
Brian Nagel: So, my question with regard to the buyback. So you clearly stepped up buyback significantly here in the quarter. So the question I have is, how should we be thinking about this? Was this more or less a kind of a one-time adjustment or is it should we expect the buyback stay aggressive here going into future quarters?
Gary Friedman: We communicate our intentions with every kind of buyback. We still have open to buy on the buyback, I think a few hundred million, [several hundred million] (ph). And so, yeah, I think we made a relatively aggressive move here and it’s — we think we bought the 17% of the business at a really attractive price. And I think our shareholders are going to benefit from that and if we’re right with our view of the next couple of years, it’s going to look like a really great investment. How aggressive will be in future quarters, I think if you’ve looked at us historically, we’re kind of optimist — opportunistic. We’re not like a big corporation that sets up a regular buyback every quarter and stuff like that. I mean, if that was smart to do, Warren Buffett would do it, right?
Warren Buffett is a very opportunistic repurchaser of their stocks. And we’re trying to be opportunistic investors. Whether it’s in our stocks, whether in anything that we do. So we think this was a great time to deploy capital and buy back a meaningful position in our company. And it depends what the market does. Depends on what we see and how we feel, what we’ll do in the future.
Brian Nagel: Appreciate, it. Thanks, Gary.
Gary Friedman: Sure. Thank you, Brian.
Operator: Your next question comes from the line of Curtis Nagle from Bank of America. Please go ahead.
Curtis Nagle: Hey, Gary. How are you doing? Thanks for taking the question. So I just wanted to go back on the point, you mentioned in the shareholder letter, just about some of these early signals that we’re reading pretty positive from Sourcebook launch, right? You said, it’s still early, but curious if you could just elaborate a little bit in terms of what you meant? Are we seeing more people come back into the brand? Are we seeing conversion rates go up? The larger order size. I would just love to hear a little bit more about some of the findings in detail if you could?
Gary Friedman: Yeah. Well, we — look the new collections that we think are the meaningful collections are acting like they’re going to be meaningful collections and the markets that the books are getting into look good, the responses look good. And so you just got to see it over a period of time in our businesses and our business is a — it’s driven mostly by advances. It’s driven by people buying a new home, remodeling a home, or deciding to redecorate a home, all of which don’t happen very often, right? So it’s a very high transaction value kind of business. So if you look at our customers over a period of several years and take their peak day, they spend roughly 80% to 85% of what they spend with us in a kind of a 90-day period, right?
And then they spend very little if you look out the next couple of years on the end. So you’ve got to kind of get them when they’re buying and that’s why the business will get us impacted more than others during a cyclical down-market like this and look, we know when we exited the holiday businesses and all the — whether it’s Halloween business and the Christmas business and the accessories business, we’re not very dominant in those businesses as we used to be. And in a down cycle, we wouldn’t take as big of a hit because people are still buying the small things. We don’t sell really much in small things and we don’t sell any kind of seasonal holiday stuff, right? So we’ll take bigger hits than other people in these down-cycles, but we will have bigger ups in the up cycles and — because of the mix and stuff like that.
So — but you’re not going to see people right away like the books won’t hit and you’re not going to see the full potential. You need to let these books kind of get in and usually we get ramped in a book by three months, we hit kind of ramp rate. And that’s if in stocks happen well and so on and so forth and things build and so on so forth. But we like everything we see. I mean, we really do. I mean, the early signals are good and — which want more time and we want to transition and set a few stores with some of the new goods, we want in-stocks to build. We’ve got a lot of new things that — some look like they’re going to be runaways and so you’re going to say, okay, how do I get in front of that and how do you reallocate production time and so on and so forth.
