RH Stock Sinks After-Hours As Trump Tariff Woes Darken Sales Outlook - Retail Traders Eye Fed Lifeline

Shares of RH, formerly known as Restoration Hardware, fell 7% in extended trading on Thursday after the luxury furniture retailer reported weak quarterly results and trimmed its sales outlook for the full year, citing the impact of tariffs.

CEO Gary Friedman's forecast on rising inflation and the impact of potential U.S. tariffs on furniture further weighed on the sentiment.

However, retail investors had a contrarian view. Users discussed how potential rate cuts could revive the housing market and, in turn, furniture sales as the retail sentiment for the RH stock climbed to the nearly highest 'extremely bullish' level (98/100).

"This is gonna be flat tmrw and then NEXT catalyst is rate cuts next week where this rips hard," one user said, referring to rising hopes that the Federal Reserve would cut interest rates next week and spark some bullishness.

RH stock saw a sharp decline in the run-up to the earnings report, falling 9% in the last four sessions. The shares are down 42% year-to-date.

Friedman believes "significant inflation" will emerge this year and accelerate into 2026 and beyond, adding that the industry needs to offer discounts to stay afloat.

The Trump administration last month announced an investigation into duping in the furniture industry, which could result in tariffs. Friedman said he hopes that the investigation reveals how hard and expensive it would be to create local manufacturing of high-end furniture in the U.S.  

"It would require years of investments in building the facilities and workforce that most in this industry cannot afford to make," he said.

RH on Thursday reported an 8.4% rise in second-quarter revenue and adjusted earnings of $2.93 per share, missing analysts' targets on both counts. It lowered its full-year revenue growth expectation to a 9% to 11% range, from a 10% to 13% range forecast in June.

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