RH reports worse-than-expected tariff hit, earnings miss
Source
American Shipper
Post Date
09/19/2025
Key Points
? Luxury furniture retailer RH reported significant tariffhits and said it could face more uncertainty with President Donald Trump?threatened furniture duties.
? The company significantly missed Wall Street revenueestimates.
? CEOGary Friedman wrote in a letter to shareholders that despite the uncertainty,he believes the company is well positioned.
Sharesof RH fellslightly Friday after the luxury furniture retailer significantly missedrevenue expectations in its fiscal second-quarter earnings report and slashedits full-year revenue outlook.
Thechain said Thursday that it will take another $30 million hit to its forebecause of tariffs, even though the retailer stood by its full-year projectionthree months ago in its fiscal first-quarter earnings report.
Itnow sees full-year revenue up 9% to 11%, compared with a prior outlook of 10%to 13%, and adjusted earnings before interest, taxes, depreciation andamortization margins of 19% to 20% compared with previous estimates of 20% to21%.
RHreported revenue of $899 million compared with Wall Street estimates of $905million. The company also delayed the introduction of its Fall InteriorsSourcebook by roughly two months as it waited to finalize pricing deping ontariff announcements.
?enow expect approximately $40 million in revenues to shift out of Q3 and into Q4and Q1 2026,?CEO Gary Friedman wrote in a letter to shareholders.
Thecompany is also facing uncertainty as President DonaldTrump has threatened to put new tariffs on imported furniture.
Inlate August, the president said his administration was conducting a 50-dayinvestigation to establish a yet-to-be-determined tariff rate on importedfurniture. The move is meant to ?ring the furniture business back?to theU.S., Trump added at the time.
?ustwhen you might have thought the tariff conversation was complete, theannouncement of a new furniture investigation and the possibility foradditional furniture tariffs, on top of existing furniture tariffs, andincremental steel and aluminum tariffs were introduced with the goal ofreturning furniture manufacturing back to America,?Friedman wrote. ?e believemost in our industry hope that this investigation surfaces the difficulty ofthat task, as current manufacturing for high quality wood or metal furnituredoes not exist at scale in America.?
RH?fiscal second-quarter earnings report, including its significant global tariffshit, did not include any estimates of what changes the company might see ifTrump follows through with the furniture tariff. The company is continuing toshift operations out of China and searching for natives to its Indiamanufacturing.
?hilethere remains uncertainty until tariff investigations are complete, we haveproven we are well positioned to compete favorably in any market condition,?riedman wrote.
