Key Takeaways

Shares of RH ( RH ) plunged Thursday on the heels of disappointing earnings results and reciprocal tariffs announced by the Trump administration.

The luxury furniture retailer’s stock fell 40% in Thursday's session, a day after the company issued a weaker-than-expected outlook and President Trump unveiled steep tariffs against China and other Asian countries RH sources from.

The drop in RH's stock price caught CEO Gary Friedman’s attention during the company’s earnings call. “Oh sh—,” Friedman said, according to a transcript provided by AlphaSense. “I just looked at the screen.”

Friedman said “it’s not a secret,” RH sources its products from Asia, but stressed the company isn’t alone. “Anybody of scale in the home business has a high percentage of their content coming out of Asia,” he said.

Other furniture stocks followed RH lower amid a broad-based decline. Wayfair ( W ) shares lost about a quarter of their value Thursday, and La-Z-Boy ( LZB ) dropped close to 9%. (Read Investopedia's live coverage of today's market action here .)

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