Is It Too Optimistic of RH to Maintain Margin Outlook Despite Tariffs?

Key Takeaways RH plans to cut China sourcing from 16% to 2% in FY25 and boost U.S. and Italy output to reduce tariff risks. Adjusted EBITDA margin rose 80 bps in Q1 FY25; full-year guidance held at 20-21% despite macro headwinds. RH stock trades at 0.95x forward P/S, below ETD and above ARHS, with FY25 EPS still set to nearly double.The ambiguity surrounding the United States’ new tariff regime is currently known to be haunting the global market, and RH (RH) is not an exception to it, given its line of bu ...