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Home / Business / Restoration Hardware increased furniture prices and will make some products outside China due to tariffs

Restoration Hardware increased furniture prices and will make some products outside China due to tariffs



The company said its strategy pays off: The high end home retailer company reported late Wednesday that it brought in $ 598 million in revenue last year, which was above analysts' expectations. It also lifted its full-year guidance for the rest of 2019.

RHs ( RH ) share increased 27% in market trading.
In its earnings report, RH said it has "renegotiated product costs and selectively raised prices to reduce the impact" of the increased $ 250 billion tariffs of Chinese goods imported into the United States. The Trump administration increased these prices to 25% from 1
0% in May.

RH also said it is changing some product development and manufacturing out of China and will consider expanding manufacturing facilities in the United States. The company also said it is looking at building new partnerships that can help ease the tax burden.

"Long-term, we do not believe that today's trading climate will weaken our ability to achieve our set economic goals and expected impact from the increased tariffs embedded in our guidance for the year," RH said in his earnings report.

RH also said that The new New York flagship, which has a fancy rooftop restaurant as well as selling furniture, is expected to earn more than $ 100 million in annual revenue.

If the premarket's gains hold, stocks will be stuck in green for the year. It was down 20% year by date after Wednesday's closeness.

The company said it believes the shares are undervalued, so it continues to buy back the shares and pay off debts to entice investors to give the stock price a lift.


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