- CEO of Rh was caught by a guard of the impact of tariffs on his company’s shares. At a call for earnings, Gary Friedman expressed a shock from the amount that the actions fell. Rh is particularly exposed to tariffs, as sources much of its product from Asia.
CEO of RF Gary Friedman A bad day was already announced on Wednesday before the details of Donald Trump’s Liberation Day were announced.
Earnings for luxury retail retail (which changed its name from hardware for restoration in 2017) was disappointing, coming far below analysts’ expectations. That hurt the company’s share price, but then, in the middle of the call for earnings, Trump tariffs were announced – and the stock really started stealing. Friedman’s reaction was not that of a typical CEO.
“Oh, really?” Oh, s —. Ok, “he said.” I just looked at the screen. I didn’t look at it. I hit when I think the tariffs came out. And everyone can see in our 10-K from where we sour, so it’s no secret, and we’re not trying to mask it by putting everything in a basket in Asia. “
RF chief executive Gary Friedman said in a call for earnings last night that the shares were reduced by 25%. “Really? Oh, okay.” $ Rh (via @quarn.com)
– Carl Quintanilla (@carlquintanilla.bsky.social) April 3, 2025 at 6:27 pm
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RF relies on Asian production partners, which means it can affect more than some other tariff companies. Since retail prices are already at a premium, which can scare customers, which further affects revenue.
In the fourth quarter of 2024, RH reported $ 1.58 per share, which was predicted by $ 1.92 analysts. Revenue also did not expect expectations.
While his company is at risk of significantly influencing tariffs, Friedman He expressed support for Trump and his plan, noting that he did not think the tariffs would be at this level for a longer period.
“It is confirmation of how to get the negotiations, not to bluff,” Friedman said. “My view is, I don’t think these tariffs will be fully held. I think if you are these other countries, you will start playing the few cards you have.” He claims that tariffs will be “a really good thing in the long run”.
This story was originally shown on Fortune.com
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