** Shares of luxury furniture retailer RH RH.N fall ~7% to $139 premarket

** Brokerage BofA downgrades RH to "underperform" from "buy", citing tariffs eroding co's relative strengths and earnings power

** Also cuts RH's PT to $130 from $410, a 13% downside to the stock's last close

** Brokerage says new tariffs on RH's key sourcing countries, including Vietnam, Indonesia, India and the EU, will severely disrupt the co's supply chain and threaten profit margins

** Expects RH's sales to fall 3% short of forecast due to weakening demand, while profit margins will likely shrink because of higher product costs and less efficient operations

** Co's net debt and leverage are now considered a "bigger risk" - brokerage

** As of last close, RH fell ~62% YTD

(Reporting by Kamal Choudhury in Bengaluru)

((Kamal.Choudhury@thomsonreuters.com;))