RH (NYSE:RH) Q4 2022 Earnings Call Transcript

And what we thought, yes, too different. And but I think they will look different. I mean as you see, kind of this next big evolution of our brand, right, like, that’s the thing, I think about climbing a mountain right, and you get to base camp and then you kind of go up a little, you are kind of return to the base camp, and you are out there for a while, then you make the next trip up, right, and you are now at a whole other level. We are about to make one of those next big moves. So, if you think about our brand, if you think about where we went from kind of 2001 to kind of 2008 and €˜09, and we hit that difficult period. And then you think about how we pivoted from there, and what the next part of the climb was, and how we differentiated ourselves in a massive way.

And then kind of the reset and kind of €˜16, €˜17, and how we repositioned ourselves for the next part of the climb. So, now it’s just the next chapter, it’s next kind of part of the climb we will develop a new base camp in this next part of the con. In the meantime, between that there was a crazy period like pandemic. So, that’s I don’t know that just doesn’t come along. So, how that affects us, and just watching through the pandemic, and seen to the other side of that correctly and strategically not getting stuck into being tactical like, there is just no way that once people start pushing the promotional buttons that they are pushing, that they are not going to push it more times, now, and there is not going to be more emails, and there is not going to be it’s like look at the emails you get, and look at them and the timing of the quarter, okay.

Like, if you think about our business and say, okay, they are driving demand that they have to shift to a customer tone, or they are having sales in an outlet warehouse sales thing. Those are all things that try to hit a number within a quarter. We just don’t play that game. That’s a game of running around in place. And got it, everybody looked great during the pandemic, hats off. Let’s see where everybody is the next couple of years, once we have cycled away from this and we get through this difficult time. I like the game we are playing. I like the strategy we have. And it’s just a completely different game than the one everyone else is playing.

Seth Basham: Understood. Thank you, Gary.

Operator: Cristina Fernandez with Telsey Advisory Group, your line is open.

Cristina Fernandez: Thank you. Good afternoon. I have two questions. The first one is on the strategic investments you are making on the global expansion. How should we think about that ramp over the next couple of years in relation to the 150 basis points, or $45 million this year? I guess should we think about it sort of linear with store openings, or are there a lot of upfront investments you are making now or last year?