We like what we have in the pipeline. We like when we dimensionalize all the trends and all the data and say, what does this all look like three months from now, six months from now, when this happens, that happens, that happens. And that’s when we think we’ll for this big transformation, that’s when we should start to reach peak inflection.
Curtis Nagle: Got it. And then just a follow-up for Gary. Comments in Germany were interesting, right, a lot stronger, it sounded like than you had expected. I don’t think you put a ton of marketing behind it. So what drove it? I mean, at least seeing online, great locations, beautiful exteriors all the rest of it. But in terms of just this response, what’s resonating — and anything you could say in terms of just, I don’t know, the potential relative to some of the — I guess the average size in terms of revenue for US, if you could size that unless it’s too early.
Gary Friedman: Yeah. I think, just in general, we’re in highly populated shopping areas, right? So in Dusseldorf, we’re on the main stopping boulevard, dead center across from Chanel, a few doors down in Hermes, the main luxury shopping street and we’re dead center. So there’s a lot of people walking by and a lot of people walking in Munich, we’re right in one of the key hearts to town and where there’s a lot of people. And you really can’t compare those to what we did in England, right? I said since the beginning, England, we didn’t do England through a lens of commerce first. We did it through a lens of conversation first. How do we create the right conversation with the brand? How do we make the right first impression? How do we do something that’s so extraordinary?
It gets high-end luxury consumers to look at us differently, think about us differently. So England is really — it’s a big brand investment. But there’s not a lot of — there’s no one walking by that store. Not a single human is walking by. You got to drive there. It’s an hour and 45 minutes out of London. I mean the business is building. We just closed our — today, we closed our biggest sale yet at $330,000 for where Chalet were.
Jack Preston: In the French house.
Gary Friedman: In the French house, the Chalet, the French house. But so the book of business is building, the design business with our internal interior designers is building, with our trade clients is building, all those pieces of business are building nicely and what’s funny, I really thought this time of the year, it’s going to go slow because the weather is not that nice out there right now, and it’s not like you’re walking around the ground unless you’ve got some heavy coats and some rubber boots and stuff. So — but our demand and our book of business and everything is building month over month. And so the brand, it’s going to take a while for the brand to that just people know we’re here and know who we are and what we’re doing.
And remember, people only buy furniture, at least every kind of five to 20 years, right, depending if you bought another new home or what you did. So you don’t generally just go out to furniture stores, unless there’s a need. So with RH England just doesn’t have the traffic of the locations that we have in Germany. And so this is just our first look at the locations in Germany, and we like what we see. We like the people that are coming in, they’re starting to engage our designers, they’re starting to learn about the brand, some know about the brand. Some have lived in America, now live in Germany and some of telling it’s just the opening part of Munich. You had a couple of how they shift their — been shipping their own containers to Munich.
And now they’re so excited we’re here, now there and — so we had a lot of fans. I mean what I was — I think, beyond my expectation was just the excitement for the brand and the quality of people that were at the opening events. It was — I mean, it was as good as you could have expected. And so that — again, that’s again creating another conversation. Those people telling their friends and others, you just let that start building. And I would expect these countries are going to probably have pretty big compounding comps for the first years. Much bigger, like in America, when we open a new store, even if we’re not in the market, we’re already in that market. We’re RH. Like we can open in Milwaukee next month, and we don’t have a gallery there, but we do millions of dollars in Milwaukee.
People are shopping from us online. They know the brand. And so when we open in a place like that, people are lined up, ready to shop. There’s people that have been shopping, they’re ready to place transactions and place orders, and you have immediate demand. I think in these new countries, people are going to come in and get to know us and we’ll start working on — they’ll get to know the brand, we’ll start working on design projects and then people will get familiar with who we are, what our prices are, how we compare and start to interact with us. But it’ll happen faster in Germany than it did in England. Like, there’s just not that much traffic. I mean, we did catch the back half of the summer. And so we did have some really high quality traffic out there.
But I think, what I’m amazed by in RH England is that the demand is building into a slow season. I’m like, that’s interesting. So we like that. And we’ve only mailed one book, and not to that many people. So just learning about how you invest in marketing and advertising and building the brand, it would be a lot to learn here for us. So, but we like what we see. I mean, I’m pleasantly surprised how the business is continuing to build in RH England. I’m really happy with just the initial turnouts for the events and then the amount of traffic just coming into the galleries, just exploring and coming to see us. So the demand, if that’s happening, the demand will then start building. So we’ll see, but we’re going to know a lot more every quarter, every six months, every year here.
Operator: Your next question comes from the line of Max Rakhlenko of TD Cowen. Your line is open.
Max Rakhlenko: Great, thanks a lot. So in the letter you noted being pleased with improved trends from the launch of interiors and contemporary. So just curious if you could frame the uplift in the context of revenues down 13% and change. And then how should we think about the magnitude of growth in the next couple of quarters from those two collections? And bigger picture on contemporary. Gary, what’s your latest thinking around how large this collection can become?
Gary Friedman: Yeah, it’s funny. We don’t primarily look at it. It’s really, what we look at is kind of one giant assortment packaged in different vehicles, right, that allows it to break through and, present an aesthetic and so on and so forth to the consumer. But it’s not like we sit here and go how’s contemporary doing, how’s interior doing, how’s this? We say how’s the furniture — the upholstery business doing? And we’re looking at every sofa in the entire assortment, whether it’s interiors, contemporary, modern. So it’s not so much the books from how we manage the business. The books is how we present it to the consumer. We look at the entire RH assortment, right, and then we’re looking at, the books they’re in and how we’re going to adjust and what’s working and what’s not working and so on and so forth.
