RH CEO Gary Friedman responded to the company’s inventory after the president announced tariffs and low quarterly revenues. (Credit: Repair Hardware)
The CEO of the furniture company was in the middle of his company’s quarterly revenue call on President’s Wednesday Donald Trump’s The tariff plans were revealed and the executives were caught off guard as they reacted to our stock in real time and were hit.
RH CEO Gary Friedman was debating how Luxury Furnishings Company, formerly known as Restoration Hardware, reported revenues that fell below analysts’ expectations when it was warned that the company’s shares fell 25%.
“Ah, really? Ah, s —. I understand,” Friedman said. “I just looked at the screen. I didn’t see it. When I think the tariffs came out, it hit me. And it’s no secret, as everyone can see at our 10-K we’re procuring.
RH CEO Gary Friedman said he called on the company to source a substantial amount of products from Asian countries. (Rachel Murray from RH/Getty Images)
RH’s regulatory filing with the Securities and Exchange Commission (SEC) shows that the company sources most of its products from Asian countries. Higher tariffs.
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According to 10-K, RH is that 72% source Products from AsiaThe rest of the Asian subset is sourced from Indonesia and India, while including 35% from Vietnam and 23% from China.
They also source 18% of products from North America, including 10% from the US, while the remaining 10% comes mainly from Europe and other countries.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| rh | rh | 149.33 | -100.16 |
-40.15% |
RH’s filing points out that it is operating Manufacturing facilities In North Carolina, the company manufactures some of its upholstery items.
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RH was previously known as repair hardware. (Charley Gallay/Getty Images by RH/Getty Images)
Friedman continues, while he thinks about some Customs duties will be lifted They will be good in the long term through negotiations with US trading partners.
“Leverage is a way to win negotiations rather than bluffing. My view is that I don’t think these tariffs will be completely stuck. If you’re in another country, I think you’ll start playing some of the cards you have,” he said. Friedman added that tariffs will be “really good in the long run.”
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RH’s stock slides continued on Thursday, falling 40% in trading sessions.
