RH (NYSE: RH) stock traded lower Friday as the home furnishings retailer faced fresh tariff headlines and updated its manufacturing and spending plans for the coming years.
U.S. President Donald Trump unveiled new import levies, including a 100% duty on branded or patented drug imports beginning Oct. 1 unless companies build in the United States, plus a 25% tariff on heavy-duty trucks and a 50% tariff on kitchen and bathroom cabinets, reports BBC.
He also said the U.S. will impose a 30% duty on upholstered furniture starting next week, the measures announced to address what he called a "flooding" of imports into the domestic market.
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In a Sept. 11 update, RH said it expects roughly 52% of its upholstered furniture to be produced in the United States next year, with the share rising through 2026.
Management's latest outlook incorporates about $30 million of incremental second-half tariff costs, net of mitigation, and anticipates approximately $40 million of revenue shifting from the third quarter into the fourth quarter and first quarter of 2026.
RH projects adjusted capital expenditures of $200 million to $250 million in 2026 and $150 million to $200 million in 2027 and beyond.
The company framed the investments as supporting supply-chain resilience and long-term brand initiatives while absorbing policy-driven cost pressures.
Industry Reaction And Peer Moves
The tariff announcements arrive despite pushback from U.S. businesses against further duties.
Ikea said the furniture levies make operating conditions "more difficult," BBC adds.
Among peers, Williams-Sonoma, Inc. (NYSE: WSM) traded softer, while Wayfair Inc. (NYSE: W) dipped after the cabinet and vanity tariff post before recovering.
A higher U.S. production mix could cushion RH against import-related volatility, but near-term tariff costs and revenue timing shifts add execution risk.
Price Action: RH shares were trading lower by 4.35% to $202.11 at last check Friday.
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