Restoration Hardware's stock plummeted approximately 40% following disappointing earnings and the announcement of new tariffs by the Trump administration. During the company's Q4 earnings call, CEO Gary Friedman reacted in real-time, exclaiming, "Oh, sh*t," as he observed the stock's sharp decline. Analysts noted that the company is now 'fully at the mercy' of these tariffs, which have significantly impacted its financial outlook. The stock's decline was noted to be around 30% immediately after the tariff announcement, escalating to a 40% drop later in after-hours trading. The situation highlights the immediate effects of government policy on corporate performance, particularly in the luxury furniture sector.