Restoration Hardware Owner’s Profits Drop 40% Due to Trump Tariff Threat
Shares of RH fell on fears about how additional tariffs imposed by US President Donald Trump will affect the luxury furniture producer. The stock plunged 40% at 9:50 a.m. Thursday in New York. That’s the lowest level in over five years. As of Wednesday, the shares had plummeted 37% this year.
According to Barclays analyst Seth Sigman, the current wave of tariffs creates “significantly more uncertainty, adding risks to both sales and margin recovery.” According to corporate documents, RH, which owns the Restoration Hardware brand, sources over 70% of its items from Asia. Vietnam and China account for more than half of the total. On Wednesday, Trump announced duties, including 46% on Vietnam and increasing China’s overall taxes to at least 54% on several commodities.
The store held an earnings call immediately after Trump’s tariff announcement at the White House. When Chief Executive Officer Gary Friedman looked at the company’s shares, he tried persuading investors that it was “well-positioned.” “I guess the stock went down based on some of the numbers we reported, and then it got killed because of a — oh really, oh sh-t.” “I was simply looking at the TV. I had not looked at it. It was affected when I believe the tariffs were implemented, and everyone can see where we’re purchasing from in our 10-K, so it’s no mystery. We are not attempting to hide it by placing everything in an Asia bucket. So you can sort of figure it out and do
