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April 3, 2025

RH Stock Plunges 26% Following New Tariffs and Weak Earnings

Key Points

  • RH stock fell 26% in after-hours trading due to new tariffs announced by President Trump (34% on China, 46% on Vietnam) and a weak Q4 earnings report.
  • CEO Gary Friedman expressed concern during an earnings call, acknowledging the company's reliance on Asian manufacturing (72% sourced from Asia).
  • The company still reported a 5% annual revenue growth of $3.18B despite facing the worst housing market in nearly 50 years.
  • RH is shifting supply chains away from countries affected by the tariffs, as acknowledged in its SEC filings about potential operational impacts.
In the ever-shifting landscape of global economics, few stories capture the tension between international policy and corporate resilience like the recent turmoil surrounding RH stock. On April 3, 2025, investors and analysts were jolted by a dramatic turn of events that sent shockwaves through the luxury home furnishings market. The narrative unfolded swiftly, with market forces, political decisions, and executive candor all converging in a single, unforgettable day.

- RH stock plummeted 26% in after-hours trading following President Trump's announcement of new tariffs (34% on China, 46% on Vietnam) and a weak Q4 earnings report.
- CEO Gary Friedman reacted candidly to the plunge, stating "Oh shit" during an earnings call after learning about the stock drop, attributing it to RH's heavy reliance on Asian manufacturing (72% of products sourced from Asia).
- The company reported 5% annual revenue growth to $3.18B despite what Friedman called "the worst housing market in almost 50 years," with 2024 existing home sales matching 1978 levels despite 117M more Americans.
- RH acknowledged in SEC filings that tariffs could significantly impact operations, though it began shifting supply chains away from tariff-affected countries.

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