RH Stock Moves Higher As Furniture Tariffs Delayed

RH stock price (NYSE:RH) is trading higher in pre-market, following the announcement of a one-year delay in tariff increases on imported upholstered furniture, kitchen cabinets, and vanities. The delay, enacted through a presidential proclamation, offers a reprieve from previously scheduled tariff hikes and has sparked positive movement in related stocks.

In the pre-market session, RH is trading 3.81% higher at $185.97 after what had been a very difficult 2025 for holders, with the stock losing 54.66% on the year. This morning's rally reflects market optimism that the tariff delay will ease cost pressures on the company.

Wayfair also benefited from the news, with its shares rising by 2.44%, indicating a broader positive sentiment across the furniture retail sector. Other companies in the sector, including Arhaus, Ethan Allen, Williams-Sonoma, Target, Walmart and Amazon, may experience similar benefits.

The decision to postpone the tariff increases stems from ongoing trade negotiations aimed at addressing trade reciprocity and national security concerns related to wood product imports. While the scheduled increases to 30% for furniture and 50% for cabinetry have been deferred, the existing 25% tariff remains in effect. This partial reprieve provides the furniture industry with additional time to adapt to the existing tariff landscape.

Proactive Supply Chain Management

Prior to this development, RH had been actively managing the impact of tariffs. In September 2025, the company revised its revenue growth forecast for the year to 9-11%, a decrease from the previous 10-13%. The company also adjusted its operating margin expectations to 13-14%, citing approximately $30 million in net tariff costs anticipated in the latter half of the year. This proactive approach to managing tariff-related challenges included significant shifts in its supply chain.

To mitigate the impact of tariffs, RH strategically reduced its reliance on Chinese imports, decreasing them from 16% to an expected 2% by the end of 2025. Simultaneously, the company increased its domestic production, projecting that 52% of its upholstered furniture would be produced in the United States by the end of fiscal 2025. These supply chain adjustments reflect RH's commitment to minimizing the financial impact of trade policies.

Breathing Space

Analysts have offered varied perspectives on the tariff delay and its implications for RH. Mizuho noted that the postponement provides “some breathing room for the sector,” allowing companies like RH and Wayfair to better manage their supply chains and pricing strategies. However, Telsey Advisory Group expressed concerns over RH's reduced revenue and profit outlooks, downgrading the stock to “Market Perform.” These outlook revisions, influenced by tariff costs and delays in product launches, highlight the ongoing challenges faced by the company.

The delay in tariff increases offers temporary alleviation for RH and the broader furniture retail sector. While the positive movement in stock prices reflects market optimism, the industry continues to navigate complexities related to trade policies and supply chain adjustments. After a terrible 2025, RH bulls will be looking for this morning's price action to follow through in the days and weeks ahead.