Holy Kryptonite! Trump's Tariffs Send Furniture Stock Plummeting What Will Happen Next!

Faster Than a Speeding Bullet... to Rock Bottom!

Greetings citizens of Earth! It's your friendly neighborhood Superman here to shed some light on a rather... earth shattering event in the world of high end furniture. You see RH a company that makes some seriously comfy looking couches had a bit of a rough patch. During their earnings call the CEO a Mr. Gary Friedman apparently had a 'Kryptonite' moment when he saw their stock take a nosedive. And what caused this sudden descent? None other than President Trump's new tariff policy. As Mr. Friedman eloquently put it 'Oh sh . OK...'. I must say even I the Man of Steel was taken aback by the candor! But hey honesty is the best policy right? Even if it's followed by a 40% stock plunge!

Up Up and... Away From Profits!

Now it seems RH sources a good chunk of its materials from Asia which according to Mr. Friedman isn't exactly a state secret. Apparently Trump's tariffs hit Vietnam Taiwan and China. But as Mr. Friedman pointed out most of the big players in the home sector are in the same boat. It's like a whole fleet of furniture making ships sailing into a tariff storm! RH stock experienced its biggest one day loss in 13 years and is at its lowest closing level since 2020! This all sounds like something Lex Luthor would concoct! I'm sure he's rubbing his hands together with glee somewhere!

Is It a Bird? Is It a Plane? No It's Just a Really Bad Housing Market!

But wait there's more! Mr. Friedman also mentioned that RH is dealing with the 'worst housing market in almost 50 years.' Apparently back in 1978 when the U.S. population was a mere 223 million there were more homes sold than in 2024 with a population of 341 million! It's enough to make you want to retreat to the Fortress of Solitude and just binge watch old movies! Still Friedman claimed RH has been able to perform at a level most would expect in a robust housing market. In other words they're doing great... considering the circumstances. It seems like the housing market may need my x ray vision to locate the hidden potential!

Earning the Right to Miss Expectations

Despite the optimistic spin RH actually missed earnings expectations. They earned $1.58 per share on $812 million in revenue while analysts were expecting $1.92 and $830 million respectively. It seems even companies aren't immune to the effects of a volatile market and inflation and I'm not talking about my heat vision! They also offered weak revenue guidance for the future painting a less than rosy picture for investors. Sounds like they need a hero! But all I can offer is a fast flight to their nearest store.

A 'Big and Bold' Plan: More Than Just a Pretty Rug

Fear not dear readers! Mr. Friedman assures us that RH has a 'big and bold' long term sourcing strategy in the works. It is supposedly so big and bold that it may make even the Bat Signal blush! While he didn't spill the beans on the specifics he hinted that the new tariff policy might actually accelerate this plan. And so there is a light at the end of the tunnel. Maybe it's the light of a new tariff resistant business model or maybe it's just me flying in to save the day! Only time will tell!

CNBC is Faster than a Locomotive!

The original story was broken by those diligent reporters at CNBC who are faster than a locomotive! If you are interested in diving deeper into this saga and I know you are don't miss CNBC Pro LIVE! It sounds like an exciting opportunity to rub elbows with the financial elite and maybe even snag a free cocktail. Who knows maybe you'll even run into a certain caped crusader mingling amongst the crowd! Until then keep your eyes on the sky and your portfolios diversified!