RH slides after BofA downgrades to 'underperform' on tariff risks

Shares of luxury furniture retailer RH RH.N fall ~7% to $139 premarket

Brokerage BofA downgrades RH to "underperform" from "buy", citing tariffs eroding co's relative strengths and earnings power

Also cuts RH's PT to $130 from $410, a 13% downside to the stock's last close

Brokerage says new tariffs on RH's key sourcing countries, including Vietnam, Indonesia, India and the EU, will severely disrupt the co's supply chain and threaten profit margins

Expects RH's sales to fall 3% short of forecast due to weakening demand, while profit margins will likely shrink because of higher product costs and less efficient operations

Co's net debt and leverage are now considered a "bigger risk" - brokerage

As of last close, RH fell ~62% YTD