The Silver Lining of China Tariffs to American Businesses
Published Date: 2019/09/13
RH operates as a holding company which operates the business through its subsidiary Restoration Hardware, Inc. It offers furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products.
From Earnings Intelligence's analysis of RH latest earnings transcript, it shows that RH is taking the China tariff in stride:
“But tariffs are more of a distraction and they shouldn't take our focus off the big rocks and what we're doing and where we're going.”
“We have recently achieved aggressive vendor discounts on all of these items as well to carry us through the near term as we transition nearly everything out of China. … collaborative partners, and most of them are moving their operations with us out of China to various other countries in the region to retain our business, save on costs, and diversify our overall supply chain risk.”
“we have work to offset a portion of the tariff cost increases through vendor negotiations, accelerated shipments, and other efforts. ”
“The tariffs are a little rock. It's kind of distractive. … I'm perfectly comfortable being uncomfortable about tariffs, because I think it can be really good for our country long-term. Balancing trade with China is a really good thing. ”