Furniture Retailers' Stocks Slump On Tariff Threat: Retail Investors See Bargain Opportunity In Some

Shares of Wayfair, Williams-Sonoma, and RH (formerly Restoration Hardware) tumbled 3.7% to 5.6% in extended trading on Friday, after President Donald Trump said the government would impose tariffs on furniture imports.

In a late-night post on Truth Social, Trump said he would announce the tariff rate after an "investigation" into furniture “coming from other Countries" is completed in 50 days.

"This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union," he said.

The pronouncement spells trouble for furniture retailers. High inflation and economic uncertainty, which have prompted consumers to hold back on big-ticket purchases, have long weighed on the industry.

Furniture sales are also linked to home sales, which have been weak for years, notwithstanding a nascent rebound in the last quarter.

Furniture, such as beds and dining table sets, is the top product category for Wayfair and RH. The development took a positive turn for La-Z-Boy, which has most of its manufacturing in the U.S. Shares of the company, known for its recliners, rose nearly 3% in after-hours trading, easing some of the declines after its weak earnings report last week.

In recent months, Trump has imposed sector-specific tariffs, including those on automobiles and automobile parts, solar panels, and metals such as steel, aluminum, and copper, in addition to a standard duty on imports.

Investors may obtain more details from Williams-Sonoma, which is scheduled to report quarterly results on Wednesday. Analysts expect revenue and profit growth.

On Stocktwits, retail sentiment was 'extremely bullish' for RH, 'bullish' for Williams-Sonoma, and 'neutral' for Wayfair as of early Monday.

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