Particle.news
Download on the App Store
6 ARTICLES
·
3w ago

Restoration Hardware Faces Stock Plunge Following New Tariffs

The Trump administration's tariffs on Asian trade partners have intensified challenges for RH, which relies on Asia for 72% of its products, as the company navigates weak earnings and a depressed housing market.

RH Chairman and Chief Executive Officer Gary Friedman
Image

Overview

  • RH's stock dropped 26% after the Trump administration announced tariffs of 34% on China and 46% on Vietnam, key sourcing regions for the company.
  • CEO Gary Friedman expressed frustration during the earnings call, noting the company's vulnerability due to its reliance on Asian suppliers.
  • RH reported fourth-quarter revenue growth of 10%, falling short of its December forecast of 20%, further unsettling investors.
  • To address supply chain risks, RH is diversifying its sourcing strategy and plans to open stores in Paris, London, and Milan by 2026 as part of its European expansion.
  • The company projects 2025 revenue growth of 10-13%, despite ongoing challenges from tariffs, market volatility, and a historically weak housing market.