RH Q3 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 : Gary, maybe to start, on the last call, you talked a lot about the reallocation of human and financial capital, right? And I wonder if you can provide more context around the potential benefits here, right, as you digest those moves? And is the launch of RH Contemporary and RH Color like a result of these efforts? Or how do you sort of speak to the potential benefits, right, of that strategic change and not dropping the source book in the fall?

Question: Steven Paul Forbes - Guggenheim Securities, LLC, Research Division - Analyst : And then maybe just a quick follow-up for Jack. I don't know if you can sort of speak to what's the right level of expenses as we look out to 2021? Or if you just want to -- sort of based on the third quarter here and maybe help us conceptualize what some of the transitory factors were, right, like the removal of the source books or so forth as we think about our 2021 models.

Question: Tami Zakaria - JPMorgan Chase & Co, Research Division - Analyst : I just have one longer-term question. I think in your press release, you spoke of 10% to 15% annual sales growth potential in the future with mid-20s operating margin. So what's really driving that optimism of 10% to 15% versus 8% to 12% that you've been speaking of prior to this trend? Do you need all the new businesses to come to life, like the yacht and the RH Residences business to come to life to get there? Or can you get to that 10% to 15% with the existing home furnishings business alone?