The CEO of Hardware restaurant had a very relatable reaction when he heard that his stock was plunging: “Oh shit.”
Wednesday, Gary Friedman cursed Gary Friedman when he discovered that the actions of the luxury house furnishings fell 26% after the hours while investors reacted to a major price announcement.
“We are really well positioned at the moment. I think it’s the title. If you are going to bet on someone in this race, and what is our stock now?” Said Friedman. “Oh really? Oh shit, okay. I just looked at the screen.”
Friedman said that HR actions had been affected after the prices of the “Liberation Day” on Wednesday because investors recognized that the company obtains most of its goods from affected countries.
During the year which ended in February, HR indicated that 72% of its products came from Asia, with important pieces from Vietnam and China. The rest of its products in Asia come from India and Indonesia, the company announced on Wednesday.
On Wednesday, President Donald Trump announced a 34% reprisal rate on China and 46% tariffs on Vietnam. India and Indonesia were affected respectively with 26% and 32% of functions.
Friedman said that other house decoration and furnishings were going through a similar challenge.
“I know most companies,” he said. “So we are all in the same boat.”
HR recognized that prices could strike its activities in its annual report.
“There is significant uncertainty as to the reduction or imposing prices and prices, and which countries can be involved. Since we cannot reasonably predict the calendar or the results of commercial actions by the American government or other countries, the impact of these actions on our activities and our operating results remains uncertain,” wrote the company.
HR declared in the file that he had started to keep his supply chain from higher tariff countries – but that may not be enough.
“The capacity to predict tariff rates in different countries can be difficult because policies can change in the short term,” wrote the company.
HR declared an increase of 5% in 2024 to 3.18 billion dollars compared to last year. Its stock is down more than 37% this year.
Governments use import prices to encourage local manufacturing, but they increase the production cost of companies that depend on foreign raw materials. These tasks are likely to increase the prices of daily goods that Americans use. While companies can choose to absorb part of the costs, customers generally assume most of the burden.
“On April 2, 2025, we will forever remember when the day when American industry is reborn, the day of destiny of America was recovered and the day we started to make America rich,” said Trump in Wednesday remarks.
businessinsider
