More tariffs could be coming for U.S. furniture sellers https://t.co/9HPw5NAESM ...

Welcome back to Money Movers on CNBC. President Trump's threats of furniture tariffs rattled stocks across the space. Names like RH, William Sonoma, and Wayfair all falling this morning as investors try to make sense of the potential impact.And you can see there, I mean RH is off by more than 5% as is Wayfair. Our next guest covers the sector, joins us now with his outlook. Let's bring in UBS equity research analyst Michael Lasser.Michael, good to talk to you. There had to be some expectation though with as ...

Speaking of which, let's get to Megan Cassella with the latest out of Washington on those tariffs. Hey, Megan. >> Hey guys, good morning.That's absolutely right. The latest industry really under fire here from this White House talking about new tariffs. All of that new talk stemming from a true social post that the president posted late on Friday in which he said he was pleased to announce that we are doing a major tariff investigation on furniture coming into the United States.He said within the next 50 da ...

Core Viewpoint - The announcement of a tariff investigation targeting the furniture sector by President Trump has led to a significant decline in shares of Restoration Hardware (RH), reflecting the company's vulnerability to trade-related disruptions [1][3]. Group 1: Stock Performance - RH shares fell over 5% in after-hours trading following the tariff announcement, despite having closed the previous session up more than 11% at $243 [1][2]. - Year-to-date, RH's stock is down almost 40%, indicating a challenging market environment [2]. Group 2: Company Vulnerability - RH is heavily reliant on international supply chains, making it one of the most vulnerable retailers to trade-related disruptions [3]. - The company has faced significant challenges this year, including a 40% drop in stock price after issuing a bleak earnings outlook in April due to higher costs and housing market weakness [4]. Group 3: Financial Performance and Adjustments - In June, RH reported an unexpected profit of $0.13 per share on revenue of $814 million, which exceeded Wall Street expectations, leading to a brief stock rebound of over 20% [5]. - Despite the positive earnings report, RH lowered its near-term revenue growth guidance by six percentage points, highlighting ongoing challenges from tariffs and supply chain adjustments [6].

Group 1 - The U.S. Department of Commerce is conducting an investigation into furniture imports under Section 232 of the Trade Expansion Act, which may lead to significant tariffs on imported furniture [1][6] - President Trump announced that the investigation will be completed within 50 days, and tariffs will be imposed on furniture from other countries, although the specific rates are yet to be determined [1][3] - Following the announcement, stock prices of major furniture retailers dropped significantly, with Wayfair down 10%, RH down 9.9%, and Williams-Sonoma down 6.7%, while La-Z-Boy, which primarily produces furniture in North America, saw a 3.7% increase [1] Group 2 - Furniture prices in the U.S. have been rising due to increased tariffs on major furniture importing countries, including Vietnam, leading to a notable increase in consumer prices for furniture and bedding [3][4] - The Consumer Price Index (CPI) for furniture and bedding has shown increases of 0.4% and 0.9% in June and July, respectively, following a period of significant deflation [3] - Other categories of furniture, such as office and outdoor furniture, have also experienced price increases, with the largest rise since May recorded at 1.5% [3] Group 3 - The investigation into furniture is part of a broader trend where the U.S. government is increasingly using Section 232 investigations to assess the impact of imports on national security, extending beyond just tariffs on steel and aluminum [6][9] - The current trend indicates a movement from raw materials to the entire supply chain, suggesting that the scope of investigations may widen to include various products and their derivatives [8][9] - Legal experts have noted that the authority granted to the President under Section 232 is extensive, with limited judicial review, allowing for broad implications for various industries [9]

President Trump announced Friday that his administration is investigating imported furniture for potential tariffs, sending shares of major home goods companies tumbling in after-hours trading.Trump said the probe would be wrapped up within 50 days, after which furniture imports would face duties at rates “yet to be determined.”“This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union,” Trump posted on his Truth Social platform.The tariff threa ...

美国总统特朗普发文称，很高兴地宣布，正在对进入美国的家具进行重大的关税调查。在接下来的50天内，调查将完成，从其他国家进入美国的家具将以尚未确定的税率被征收关税。这将把家具业务带回北卡罗来纳、南卡罗来纳、密歇根和整个联盟的各州。 ...

Just within the past couple of moments, the president of the United States announcing a major tariff investigation in the furniture industry, posting on social media a couple minutes ago, "I am pleased to announce that we are doing a major tariff investigation on furniture coming into the United States within the next 50 days. That investigation will be completed and furniture coming from other countries into the United States will be tariffed at a rate yet to be determined. This will bring the furniture bu ...

President Donald Trump said the US is conducting a “major Tariff Investigation on Furniture coming into the United States,” setting the stage for industry-specific levies. https://t.co/ZBw2BnG4Fi ...

Retail Sector Overview - The retail sector has demonstrated significant resilience despite rising prices and inflation, with retail sales increasing by 0.5% in July after a 0.9% rise in June, and a year-over-year increase of 3.9% [1][3] - The growth in July was primarily driven by a 1.6% increase in motor vehicle sales at auto dealerships, following a 1.4% rise in the previous month [3] Online and Specific Retail Sales - Online sales rose by 0.8% in July, building on a 0.9% increase in June, while clothing stores and furniture outlets saw sales increases of 0.7% and 1.4%, respectively [4] - Households are reportedly spending less and saving more due to concerns over a weak labor market and potential inflation from tariffs [4] Impact of Tariffs and Federal Reserve Policy - Tariffs imposed by the Trump administration have contributed to rising prices, which in turn have influenced retail sales positively, potentially leading the Federal Reserve to maintain interest rates at 4.25-4.5% for an extended period [5] - Despite a hawkish stance, some Federal Reserve officials have indicated plans for two 25-basis-point rate cuts before year-end, with markets pricing in an 83.1% chance of a cut in September, which would benefit the retail sector and the economy overall [6] Selected Retail Stocks - Four retail stocks are highlighted for investment: Levi Strauss & Co. (LEVI), Walmart, Inc. (WMT), Dutch Bros Inc. (BROS), and Wayfair Inc. (W), all of which have seen positive earnings estimate revisions in the past 60 days and carry favorable Zacks Ranks [2][10] Levi Strauss & Co. - Levi Strauss & Co. has an expected earnings growth rate of 4% for the current year, with a Zacks Consensus Estimate improvement of 5.7% over the past 60 days, and holds a Zacks Rank 1 [8] Walmart - Walmart's expected earnings growth rate for the current year is also 4%, with a 0.4% improvement in the Zacks Consensus Estimate over the past 60 days, and it holds a Zacks Rank 2 [11] Dutch Bros Inc. - Dutch Bros Inc. is projected to have a 34.7% earnings growth rate next year, with an 8.2% improvement in the current-year earnings estimate over the past 60 days, and carries a Zacks Rank 2 [12] Wayfair Inc. - Wayfair Inc. is expected to see earnings growth of over 100% for the current year, with the Zacks Consensus Estimate improving by more than 100% in the past 60 days, and holds a Zacks Rank 2 [14]