• The CEO of RH was caught off guard by the impact of tariffs on his company’s stock. On an earnings call, Gary Friedman expressed shock at the amount shares fell. RH is particularly exposed to tariffs, as it sources much of its product from Asia.

RH CEO Gary Friedman was already having a bad day Wednesday before details of Donald Trump’s Liberation Day were announced.

Earnings for the luxury-furniture retailer (which changed its name from Restoration Hardware in 2017) were disappointing, coming in well below analyst expectations. That hurt the company’s share price, but then, in the middle of the earnings call, Trump’s tariffs were announced—and shares really began to crater. Friedman’s reaction was not that of a typical CEO.

“Oh really? “Oh, s—. OK,” he said. “I just looked at the screen. I hadn’t looked at it. It got hit when I think the tariffs came out. And everybody can see in our 10-K where we’re sourcing from, so it’s not a secret, and we’re not trying to disguise it by putting everything in an Asia bucket.”

RH CEO Gary Friedman, on the earnings call last night, being told the stock was down 25%. “Really? Oh, sh*t. Okay.” $RH (via @quartr.com)

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— Carl Quintanilla (@carlquintanilla.bsky.social) April 3, 2025 at 6:27 AM

RH is reliant on Asian manufacturing partners, which means it could be impacted more than some other firms by tariffs. Given that the retailer’s prices are already at a premium level, that could scare away customers, further impacting revenues.

In the fourth quarter of 2024, RH reported earnings per share of $1.58, far short of the $1.92 analysts were predicting. Revenue also fell short of expectations.

While his company is at risk of significant impact of the tariffs, Friedman expressed support for Trump and his plan, noting he didn’t think the tariffs would be at this level for an extended period.

“Leverage is how you win negotiations, not bluffing,” Friedman said. “My view is, I don’t think these tariffs are going to completely stick. I think if you’re these other countries, you’re going to start playing the few cards you have.” He argued that tariffs would be “a really good thing long term.”

This story was originally featured on Fortune.com