The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Asher Melech Sohnen - Citigroup Inc., Research Division - Analyst
: This is Asher Sohnen on for Anthony. I guess my question is, the last time we saw rates rising in 2018 time frame, your sales pace
didn't slow down meaningfully. So I was just wondering what were maybe some of the early warning signs in 2018, 2019 time frame
that were showing the demand that maybe we should be looking for around now? And then I know you haven't seen any impact
on demand yet, but have any of those warning sign metrics started to weaken for you at all?
Question: Asher Melech Sohnen - Citigroup Inc., Research Division - Analyst
: Okay. As a follow-up, I just want to -- so thinking about your sales pace in 2021, you sold maybe a little over 3 homes per community
per month in the quarter, similar to that. And then I think for the -- for 2Q, you expect to do the same.
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FEBRUARY 23, 2022 / 1:30PM, TOL.N - Q1 2022 Toll Brothers Inc Earnings Call
So I'm just wondering, looking out for the rest of the year and then maybe even beyond that, is that sales pace sustainable, maybe
like a new normal? Or should we think about that 10% growth in community count coming more maybe at the cost of a little bit
more of a normalization in sales pace?
Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst
: First question is you made the comment, Doug, that the web traffic remains high and that you haven't really seen any changes in
that. But just wondering if you could give us any more details in terms of what you are seeing online.
Are people looking at different products? Is there any change in options that they're keeping an eye on? Are they spending more
or less time? And any details around what you're seeing there?
Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst
: Yes. But I guess are you seeing any changes in the stickiness to the website or what they're looking at? Anything that's been different
in the last couple of weeks, as we've seen rates rise relative to where we were a couple of months ago or a couple of quarters ago?
Or has it been consistent?
Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst
: Okay. Okay. That's helpful. And then my next question is just around when we think about where the business is today, holistically,
you focused a lot on growing the affordable luxury piece in the last several years. When you think about the business going into a
rising rate environment with the affordable luxury piece of it today, which you didn't have in the past. How do you think about the
mix shift that we could see the potential to sort of grow the luxury versus the affordable luxury pieces of things? And any changes
there that could be coming?
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