Gary Friedman, the CEO of luxury furniture retailer RH, had a very unfiltered reaction when he found out during a Wednesday earnings call that his company’s stock had tanked around 25% following President Donald Trump’s hefty tariff announcement.
“Really? Oh shit,” Friedman said on the call when he saw the figures.
“I just looked at the screen. I hadn’t looked at it,” he said. “It got hit when I think the tariff came out, and everybody can see in our 10-K [annual report] where we’re sourcing from, so it’s not a secret.”
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Company filings show that RH, formerly known as Restoration Hardware, sources about 70% of its materials from Asia, largely from China and Vietnam, where Trump has levied some of his most aggressive tariffs.
“So you can kind of figure it out and do the math,” Friedman said on the call.
Trump’s slapped an additional 34% tariff on China on top of the 20% he imposed earlier this year. He also hit Vietnam with a 46% tariff.
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As of Thursday morning, stock for RH was down more than 40%.
Friedman said that impact is likely to be felt across the furniture and home goods industry.
“Anybody of scale in the home business has a high percentage of their content coming out of Asia,” he said. “Anybody who says they don’t, that would just shock me.”
Wayfair, the budget-friendly home furnishings e-commerce giant, saw its stock tank 28% on Thursday. Williams-Sonoma, which sells furnishings and kitchenware across its brands, saw stock drop 16%, and furniture retailer Arhaus saw its stock drop around 20%.
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The day after Trump’s tariff announcement, which revealed far heavier penalties on imports than were expected, U.S. markets saw their steepest decline in more than two years. So far, major stock indexes have dropped up to 5.6%, and stocks have lost around $2.7 trillion in market value.
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