0814 ET - The sweeping new U.S. tariff plan is worse than expected for broadline and hardline retailers, with RH and Best Buy likely to be the hardest hit, analysts at Citi say. Even after RH's steep premarket selloff, Citi downgrades the luxury-furniture to neutral from buy. Citi says RH faces significant sourcing exposure to new reciprocal tariffs, balance-sheet leverage that becomes a major concern if sales weaken, a lack of pricing power and potential anti-American sentiment risk to its European stores. Citi also cuts Best Buy to neutral from buy amid concerns that big-ticket categories like consumer electronics may see weakness, high tariff exposure will weigh on earnings and its business is likely to see more share loss. RH tumbles 30% premarket, while Best Buy sheds 12%. (colin.kellaher@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 08:14 ET (12:14 GMT)
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