Gary Friedman: Well, I mean, we set to inflect the revenue growth back, right? So the housing market has to stabilize. I mean, the luxury housing market was down 45% in the fourth quarter. I mean, I don’t know, do you have any records on have you seen a housing market works on this? When our business is tied to the housing market, it’s tied to the refinance market. Refinance market is down 70%, 80%, like 78%, it’s not rocket science to know this is a really bad time. I think what’s different here than past maybe it’s usually when you have a recession, it all gets thrown into the same pot. The fact is we’ve been in a massive housing recession for the past year. And on top of that, you have kind of the COVID come down. And so €“ but your businesses, right, that were kind of shut down during COVID that have opened up.
So travel and leisure, other things. People are traveling, so they are buying more clothes. That shouldn’t surprise anyone. You’re going to more weddings people are going to right now because there is no weddings for 2 or 3 years. How many events are happening if people are buying new clothes for a new jewelry for. We’ve perfumed where, like yes, people like, well, Lululemon was really up during the pandemic and they are really up now. Well, yes, there was nothing to do, but work out during the pandemic, but you did it mostly at home. Now you get to go back to your yoga class and your SoulCycle, who’s like super happy, really happy that if they weren’t so happy during the pandemic when Telecon took all the business that they feel pretty good right now.
I think about all these things that have changed. I think what happened at Telecon. What was it worth $50 billion and now it’s worth $3 billion or something everybody thought like that was going to last forever or people thought, SoulCycle was never going to open again. Like it’s kind of less of time, the times are more normal. 20% is the floor. This is not normal. So 20% is not before. And it’s not normal because we’re also right of the steps of global expansion, making significant investments in people and travel and training and I mean opening galleries for us is a massive investment. That’s not like store opening for again, a mall store that takes you 16 weeks to build and a few days to open. We have people there for a month, just trying to set and install in our galleries like we’re training people in our restaurants for a month or several months.
Some people are several months, we’ve had teams here in San Francisco and New York training for hospitality experiences overseas and for gallery experience. So massive investment. Will that all kind of normalize once we open just kind of first few rounds of countries, yes. Once we get some scale, the deleverage won’t be so great. The investments will be different. So I don’t think anybody ought to be surprised. But I mean it’s €“ when I said 20% we should be able to stand at 20%. I was kind of thinking about a COVID giveback, not a COVID give back and a collapse of the housing market. I’m sorry if anybody is surprised that math isn’t hard to do.
Seth Sigman: Great. Thank you for that, Gary. Appreciate it.
Operator: Anthony Chukumba with Loop Markets, your line is open.
