Shares of Restoration Hardware (RH) surged 5.55% in after-hours trading on Friday, following the company's announcement of strategies to mitigate the impact of recently announced reciprocal tariffs.
In a clarification statement, RH revealed that it has already taken proactive measures to address potential tariff-related challenges. The company stated that it has "resourced the majority of China production to Vietnam" and has also moved some production to its North Carolina factory. These actions are seen as strategic moves to reduce the company's exposure to tariffs and maintain its competitive edge in the market.
This positive development comes after a challenging day for RH, which saw its shares decline earlier due to brokerage downgrades. The after-hours rally suggests that investors are reassured by the company's swift response to the tariff situation, potentially offsetting concerns raised by analysts. As the market digests this new information, all eyes will be on RH to see if this upward momentum continues in the next trading session.