By Laya Neelakandan

Copyright cnbc

The company is also facing uncertainty as President Donald Trump has threatened to put new tariffs on imported furniture.

In late August, the president said his administration was conducting a 50-day investigation to establish a yet-to-be-determined tariff rate on imported furniture. The move is meant to “bring the furniture business back” to the U.S., Trump added at the time.

“Just when you might have thought the tariff conversation was complete, the announcement of a new furniture investigation and the possibility for additional furniture tariffs, on top of existing furniture tariffs, and incremental steel and aluminum tariffs were introduced with the goal of returning furniture manufacturing back to America,” Friedman wrote. “We believe most in our industry hope that this investigation surfaces the difficulty of that task, as current manufacturing for high quality wood or metal furniture does not exist at scale in America.”

RH’s second-quarter earnings report, including its significant global tariffs hit, did not include any estimates of what changes the company might see if Trump follows through with the furniture tariff. The company is continuing to shift operations out of China and searching for alternatives to its India manufacturing.

“While there remains uncertainty until tariff investigations are complete, we have proven we are well positioned to compete favorably in any market condition,” Friedman wrote.