Shares of Restoration Hardware (RH) surged 5.55% in after-hours trading on Friday, rebounding from earlier losses as the company provided clarifications regarding the reciprocal tariffs announced on April 2, 2025, and outlined its strategies to mitigate their impact.

In a statement released after the market close, RH revealed that it has already taken proactive measures to address potential tariff-related challenges. The company announced that it has "resourced the majority of China production to Vietnam" and has also moved some production to its North Carolina factory. These strategic moves are aimed at reducing the company's exposure to tariffs and maintaining its competitive edge in the luxury home furnishings market.

The positive reaction in after-hours trading marks a significant turnaround for RH's stock, which had faced downward pressure earlier in the day. The stock had initially dropped 9.4% following brokerage downgrades, with Citi lowering its rating on RH to Neutral from Buy and slashing its price target to $200 from $437. However, the company's swift response and clear communication about its tariff mitigation strategies appear to have restored investor confidence, leading to the after-hours rally.