And remember, what happens in the housing market, it kind of trails to our business didn’t happen, it happens fast, but not completely it takes about 3 months to kind of completely hit us and settle in. And so the €“ all of that happening at once, could we be it 20, if we wanted to be, could we slow down the European expansion. If we wanted to, did we kind of structure the business and make 20 points? Yes. I mean we could. Is that the right thing to do long-term? No. So in a typical environment, in a slowing market, with one thing hit us at once, but multiple things are hitting us at once. So do we think there is anything different about our long-term view, the business being in the mid-20s operating margin, 30% EBITDA, maybe even higher operating margins than end.
Just think about our model and imagine it with real scale imagine with this looks like. Imagine if we really become one of the great admired luxury brands in the world and what kind of product margins you can achieve when you really reach that level of desirability and there is a lot to these business is €“ yes, the brand that we’re trying to build doesn’t happen quickly. It takes that age in centuries, if you name all the real luxury brands in the world. And that’s why most people don’t even think about building one because it’s too far out of their view. I mean we may not get there in my lifetime. The key will be that I set this company on the trajectory €“ to get there, and do something that’s never been done because no one’s ever started at the bottom of the mountain like we’ve started.
We’ve been further ahead, if I would have taken the $60 million I raised 2001 and just starting from scratching and not invested in RH. Yes, probably, but it’s still is a really long time. Our management side 300 years old, like most of these brands are more than a century old €“ more than 100 years old. So I got that everybody’s been patient. And we’re in patient too. I think we moved faster than most. But it’s just a different path. It’s not going to be €“ we got rolled out and we burned out. There is a lot of things that really hot with investors for a little while. And next thing they are not ever again. We’re trying to build something that’s really interesting and unique that stands to test the time. If it’s not many people trying to do what we are doing today, so it’s a little foreign.
And if it’s somebody that’s not really €“ that doesn’t really cover luxury. I’d say for people, you want to understand it’s more, we will read about Bernardo now, read about how he thinks about luxury brands, what it takes to build them, the discipline you have to have, the radical innovation it takes, the relentless pursuit of a long-term view, people that are doing it. I think people that are more familiar with luxury brands are more familiar with the path that we’re taking than a lot of people that aren’t, right? If you’re just covering the home furnishing sector of hard goods, almost none of it relates to the path we’re taking except that we’re selling furniture and home stuff. It’s a very different strategy.
Steven Zaccone: Great. Thanks for all the details. Best of luck this year.
Gary Friedman: Thank you.
Operator: Seth Sigman with Barclays, your line is open.
