RH Faces Stock Plunge and Economic Pressures as Tariffs Shake Markets

Following a 40% stock drop tied to disappointing earnings and sweeping tariffs, RH outlines strategies to navigate increased costs and a weak housing market.

• RH's stock price has fallen 40% since April 2, 2025, following its Q4 earnings miss and the announcement of new tariffs by President Trump.
• The Trump administration's tariffs target imports from Asia and other regions, with levies as high as 46% on Vietnamese goods and 34% on Chinese goods.
• CEO Gary Friedman highlighted RH's inventory strength and stated the company does not plan immediate price increases despite rising costs from tariffs.
• Friedman described the U.S. housing market as the weakest in nearly 50 years, further compounding challenges for the luxury home furnishings retailer.
• Despite current economic headwinds, RH plans to expand globally, with new galleries set to open in North America and Europe in 2025 and 2026.

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