Shares of RH $RH, a high-end furniture retailer, soared 17.1% on Thursday after the company delivered better-than-expected Q1 earnings and reaffirmed its bullish full-year outlook, mitigating investor concerns about persistent macroeconomic headwinds in the discretionary home goods sector. While revenue of $814 million slightly missed the Wall Street consensus of $818 million, the company posted an adjusted EPS of $0.13, beating forecasts by $0.20 per share, and signaling early progress in margin recovery amid a challenging cost environment.

The recent drop in shares of RH (formerly known as Restoration Hardware) has drawn attention from financial analysts and investors alike. On Thursday, at 9:50 AM New York time, the stock price plummeted by 40%, marking the lowest level since 2018. This decline is directly connected to announcements made by President Donald Trump regarding the introduction of new tariffs on imports, which has raised significant concerns among investors.