Furnishing retailer RH hikes prices to offset China tariff, raises outlook
Adds details on tariff mitigating, forecast
June 12 (Reuters) - Home furnishing retailer RH RH.N said on Wednesday it selectively raised prices of its products to offset the impact of tariff hike on the goods imported from China.
The company also reported better-than-expected quarterly results and raised its revenue and profit forecasts for this year, sending the company's shares up 25% after the bell.
Washington dramatically escalated its trade war with Beijing last month by hiking levies on $200 billion worth of Chinese goods from 10% to 25% and U.S. President Donald Trump also threatened new tariffs on remaining $300 billion worth of U.S. imports from China.
Apart from raising prices, RH said it was also moving certain production and development of new products out of China, while expanding its own manufacturing facilities in the Unites States to mitigate the tariff impact.
"Long term, we do not believe the current trade climate will impair our ability to achieve our stated financial goals," Chief Executive Officer Gary Friedman said in a statement.
The company raised its full-year adjusted revenue forecast to the range of $2.64 billion to $2.66 billion from the prior forecast of $2.59 billion to $2.64 billion, noting that the tariffs impact is embedded in the forecast.
Net revenue for the first quarter ended May 4 rose to $598.4 million from $557.4 million, beating the analysts' estimates of $584 million.
(Reporting by Soundarya J in Bengaluru; Editing by James Emmanuel)
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