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RH Provides Clarifications Related to the Reciprocal Tariffs Announced on April 2, 2025

1. RH clarifies its response to 25% tariffs impacting production costs. 2. The company has shifted production to Vietnam, improving cost efficiency.

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FAQ

Why Bullish?

RH's transition to Vietnam demonstrates strategic resilience against tariffs, similar to past recovery periods. Historical examples, including post-tariff adjustments in 2019, show potential for improved margins.

How important is it?

The article's insights on tariff impacts and production strategies are crucial for assessing RH's market positioning. Given RH's reliance on international sourcing, such information significantly influences investor sentiment.

Why Long Term?

The sustainability of cost reductions and operational efficiencies points to long-term profitability. Previous adaptations have led to lasting effects beyond the initial adjustments.

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LBWHVT
CORTE MADERA, Calif.--(BUSINESS WIRE)--RH (NYSE:RH) provided the following clarifications today based on the market volatility related to the reciprocal tariffs announced on April 2, 2025. The Company has been operating with 25% tariffs from China since the last Trump administration and has successfully resourced the majority of its China production to Vietnam at significantly better than pre-tariff landed China pricing. In addition, the Company has successfully resourced a meaningful amount of.

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