RH Q1 2020 Earnings Q&A Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst : So Gary, I wanted to touch on 2 topics. The first is Waterworks and then the second sort of being what you noted on the spread between demand and revenue growth and really just the manufacturing network. So maybe to start with Waterworks. Can you just give us an update on the business there and less about how it performed and more about what you're thinking about the potential integration in that offering and the time line behind that?

Question: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst : And then just a quick one, if I think back to 2016 and some of the RH Modern disruption, right, there was customer combinations in order to provide people some window of time, right? I mean are you feeling that from the customer today? Or are you sort of explaining the issue? And do you feel like there's a general understanding and appreciation out there? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

Question: Tami Zakaria - JPMorgan Chase & Co, Research Division - Analyst : I have a really quick one. So can you talk a little bit about how much of the announced $150 million of cost savings did you recognize in the first quarter? And do you expect any more savings in the second quarter? And also, how much of this is actually permanent given you eliminated some positions back in April?