Shares of luxury home furnishings retailer Restoration Hardware(NYSE: RH) tumbled after President Donald Trump announced a tariff investigation targeting the furniture sector.
Trump said his administration plans to impose new taxes on imported furniture within 50 days, a move that rattled markets and sent RH shares sliding over 5% in after-hours trading.
This came just after the stock had ended the last session on a bullish note, closing at $243 up more than 11%. Year-to-date, however, RH remains deep in the red, down almost 40%.
The company, which relies heavily on international supply chains, has long been flagged as one of the most vulnerable retailers to trade-related disruptions.
“Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined. <…> This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,” Trump said.
RH stock struggles
Notably, the tariff announcement marks the latest blow for RH in what has already been a volatile year. Back in April, the stock plunged more than 40% after the company issued a bleak earnings outlook, citing higher costs and housing market weakness.
At the time, the fallout left shares down over 53% year-to-date, with CEO Gary Friedman acknowledging the difficulty of navigating tariff headwinds.
Despite those setbacks, RH staged a brief rebound in June after reporting an unexpected $0.13 per share profit on revenue of $814 million, beating Wall Street expectations.
Shares surged more than 20% as Friedman outlined steps to mitigate exposure, including delaying a major new concept launch to 2026 and shifting more production to the company’s North Carolina facility.
Even so, RH lowered its near-term revenue growth guidance by six percentage points, underscoring the ongoing strain of tariffs and supply chain adjustments.
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