RH CEO explains why his company doesn't have a social media presence

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RH CEO Gary Friedman told CNBC’s Jim Cramer on Friday why the upscale home furnishing retailer doesn’t have any official social media accounts.

RH CEO Gary Friedman told CNBC's Jim Cramer on Friday why the upscale home furnishing retailer doesn't have any official social media accounts, saying paid promotions by online influencers aren't authentic.

"The great brands that stand the test of time, they earn it, right," Friedman said."They tell the truth. And, you know, having fake fans and people you pay talk about you on Instagram or TikTok or whatnot, it's not the truth."on Friday why the upscale home furnishing retailer doesn't have any official social media accounts, saying paid promotions by online influencers aren't authentic.

Friedman conceded that social media has exploded, and"the digital visualization and connectivity is real." However, he said that if consumers aren't interested in our showing enthusiasm for the brand, RH should do better work, not pay others to talk about the company. He claimed that RH still has a solid presence online, but not because of paid influencing or social media marketing on the company's part.earlier this month, and its stock is up a little over 18% year-to-date.

He also discussed how higher tariffs could affect business, but suggested it may not be an obstacle particularly difficult to overcome. He said"supply chases demand," and that RH is good at creating demand. Friedman noted that when tariffs increased in the past, the company moved a significant part of its upholstery business back to the U.S., adding that it has a sofa factory in North Carolina.

 

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