Here is a summary of RH's Q1 2023 earnings call, which took place on May 25:
- RH exceeded its Q1 2023 financial outlook despite a challenging macro environment.
- The luxury housing market and broader economy are expected to remain challenging throughout fiscal year 2023 and into next year.
- RH is forecasting increased markdowns to clear discontinued inventory over the next several quarters to support its product transformation.
- The company's revenue outlook for FY 2023 is raised to a range of $3 billion to $3.1 billion, and adjusted operating margin outlook is lowered to a range of 14.5% to 15.5%.
- RH is pursuing a long-term strategy of Product Elevation, Platform Expansion, and Cash Generation to create strategic separation and significant value creation.
- RH is launching over 70 new furniture and upholstery collections across multiple markets.
- RH is expanding its brand globally, transforming its North American Galleries, and addressing new markets locally through Design Studios.
- RH plans to expand its product collections, open immersive Design Galleries in every major market, and launch RH Residences.
- RH is building a global leadership team and organization that will lead and oversee the business the same way as it does in North America.
- The CEO is taking a long-term view of the business, and the company is making long-term moves to transform the business for the next cycle.
This is an AI generated summary. There may be inaccuracies.
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