RH (NYSE:RH) Q4 2022 Earnings Call Transcript

There is a lot of really questions that are unanswered, right. If you just stop and think about that, so the banking crisis unfold to be something worse, I think it can. That’s why, I think that when I talk to the smartest people I know, but most degrees, and yelling out of just calm everybody down, and just tell everyone, that the government that your money is safe for at least a year, or something, but not let it be kind of unknown. Because that’s just going to get people to keep money €“ moving money around, and it’s going to create instability in the banking sector, and create more issues. So, what’s going to be determined and what really unfolds here, but it looks like the shock was also temporal. It looks like that people have returned to their habits.

And usually need something meaningful that change consumers habits, so they change for a short period of time, they are kind of look normal. But then again we are in a period where, I mean you think about the yields and stuff like the change in the forecast on the interest rate hikes and things like that. I mean like, from one day to the next, it was crazy like, how the markets were pricing in, where interest rates were going and all of a sudden it completely flipped just because of the banks shut €“ banks that got shutdown over the weekend and everybody believes that all people believe me, like, let’s think about this. Like Goldman Sachs that we €“ they weren’t going to raise rates at all, with that pretty credible big bang. And just the week before everybody thought that we were going to go 50 basis points and another 50 basis points, maybe even higher than that.

So, yes, it’s just a lot of unanswered questions from a macro point of view that you have to consider. So, we are kind of guiding based on what we know today, if it gets meaningfully worse, we will let you know, we got some flexibility within our numbers to navigate through this. And it’s just a very uncertain time. So, if you sit around and just obsess about it, you are not going to be obsessed about building your brand and growing your business. So like, I know I am talking a lot about it, because we think about it and just give you my view, but it’s not what we obsess about here. We obsess about the things that are in the letter. And in that order and we have some just some ordinarily exciting stuff about to happen here that I believe leapfrog this brand and business to another level.

So, we are really excited about that. In the meantime, we are trying to navigate through the worst luxury housing market I have ever seen. And going all of the stock market and our recent banking crisis and all kinds of other things, so again, just there is not going to be kind of any details here that unlocked any new view. If it’s not in the letter, it’s probably not big news to us.

Brad Thomas: Understood. One item that we didn’t talk about a lot on this call, is the guest house, any update you could share on learnings that you have had since it’s been open?