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: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst
: Gary, given the combination of supply chain challenges, rising cost pressures, which I believe is driving rising retails, curious if you
could just discuss at a high level whether you're seeing any changes in customer engagement or customer conversion trends as
well as cancellation rates. And the idea is just trying to gain a level of comfort here on what's driving your conviction to raise guidance
yet again this year as we look towards the back half without having, right, this new product launch, potentially stimulating more
demand.
Question: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst
: No, that's helpful. And just a quick follow-up. As I think back to the first quarter letter, there was commentary about the broader
international pipeline. I think it was 5 leases were signed, 5 in final negotiations. Any update on how that pipeline has come together?
Any update you can provide would be helpful.
Question: Tami Zakaria - JPMorgan Chase & Co, Research Division - Analyst
: I have a couple of quick ones, actually. So first, I saw some of the convertible notes you have were moved to the current liability
section of the balance sheet. So are these redeemable in the next 12 months?
Question: Tami Zakaria - JPMorgan Chase & Co, Research Division - Analyst
: Got it. Got it. That's helpful. And then the second question, can you talk a little bit about the design services market in Europe and
what kind of opportunity do you see there for RH, given this has been a great success for you in the U.S. market? So do you plan to
have complementary design into your design service in Europe as well when you launch there?
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