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Investing.com - Telsey Advisory Group has warned that proposed furniture tariffs would severely impact the furniture industry, which is already managing recently enacted tariffs on imports from Vietnam, Indonesia, and India.
The research firm noted that while retailers have been quick to relocate production away from China, shifting production of certain items like casegoods and patio furniture to the United States would require significant time and substantially increase consumer prices.
Telsey highlighted that furniture retailers are simultaneously dealing with a challenging demand environment, further strained by weakness in the housing market.
Despite the negative outlook for the sector, Telsey believes Williams-Sonoma (NYSE:WSM) is better positioned to weather these tariffs compared to industry peers.
The firm maintains an Outperform rating on Williams-Sonoma with a price target of $215, citing the company’s diversified revenue streams, higher profitability metrics, and strong balance sheet as protective factors.
In other recent news, Restoration Hardware has been the subject of several analyst ratings and company updates. UBS maintained its Neutral rating with a $215 price target following the company’s first-quarter earnings report, noting solid sales momentum and profitability despite broader industry challenges. Meanwhile, KeyBanc reiterated its Sector Weight rating, highlighting that Restoration Hardware ran additional promotions in the second quarter, which improved sales and cash flow. TD Cowen also reiterated its Buy rating with a $235 price target, emphasizing the potential of the RH Montreal opening.
Stifel reiterated a Buy rating with a $390 price target after Restoration Hardware’s first-quarter fiscal 2025 results met analyst expectations. The company maintained its full-year 2025 guidance but announced a delay in its brand extension plans to fiscal 2026. Restoration Hardware’s second-quarter outlook was softer than anticipated, with a projected shipment headwind due to uncertainty around Liberation Day. Despite mixed first-quarter results, including revenues below expectations but earnings per share above forecasts, the company continues to demonstrate resilience. These developments reflect ongoing adjustments and strategic planning within Restoration Hardware.
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