RH CEO Gary Friedman responded to the company's inventory after the president announced tariffs and quarterly revenues fell. (Credit: Repair Hardware)
The CEO of the furniture company was in the middle of his company's quarterly revenue call on President's Wednesday Donald Trump's The tariff plans were revealed and the executives were caught off guard as they reacted to our stock in real time and were hit.
RH CEO Gary Friedman was debating how Luxury Furnishings Company, formerly known as Restoration Hardware, reported revenues that fell below analysts' expectations when it was warned that the company's shares fell 25%.
“Ah, really? Ah, s —. I understand,” Friedman said. “I just looked at the screen. I didn't see it. When I think the tariffs were coming out, it hit me. And it's no secret, as everyone can see it in our 10-K we're procuring.
RH CEO Gary Friedman said he called on the company to source a substantial amount of products from Asian countries. (Rachel Murray from RH/Getty Images)
RH's regulatory filing with the Securities and Exchange Commission (SEC) shows that the company sources most of its products from Asian countries.
What you need to know about Trump's “liberation day” tariffs
According to 10-K, RH sources 72% of its products from Asia. This includes 35% from Vietnam and 23% from China, while the rest of the Asian subset is sourced from Indonesia and India.
They also source 18% of products from North America, including 10% from the US, while the remaining 10% comes mainly from Europe and other countries.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| rh | rh | 164.35 | -7.58 |
-4.41% |
RH's filing says it operates a manufacturing facility in North Carolina.
Trump's tariffs: Who pays and charges what?
RH was previously known as repair hardware. (Charley Gallay/Getty Images by RH/Getty Images)
Friedman went on to say that while he believes that some of the tariffs will be lifted through negotiations with our trading partners, they will be good in the long run.
“Leverage is a way to win negotiations rather than bluffing. My view is that I don't think these tariffs will be completely stuck. If you're in another country, I think you'll start playing some of the cards you have,” he said. Friedman added that tariffs will be “really good in the long run.”
Click here to get your Fox business on the go
RH's stock slides continued on Thursday, falling 40% in trading sessions.
