Furniture Stocks Climb as Trump Tariff Postponement Provides Sector with 'Breathing Space'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Should l Buy W?
Source: Barron's
- Furniture Stocks Rally: Furniture stocks experienced a surge on Friday morning.
- Tariff Delay Announcement: Investors reacted positively to President Donald Trump’s decision to postpone an increase in sector-wide tariffs for one year.
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Analyst Views on W
Wall Street analysts forecast W stock price to rise
26 Analyst Rating
18 Buy
8 Hold
0 Sell
Moderate Buy
Current: 79.570
Low
75.00
Averages
118.16
High
150.00
Current: 79.570
Low
75.00
Averages
118.16
High
150.00
About W
Wayfair Inc., through its e-commerce platform, offers a selection of furniture, decor, housewares and home improvement products. The Company’s customers span a range of demographics, with annual household incomes ranging from $25,000 to over $250,000, and also include business professionals, from small startups to global enterprises. Its family of brands includes Wayfair, AllModern, Birch Lane, Joss & Main, Perigold and Wayfair Professional. It also features certain products under its house brands, such as Three Posts and Mercury Row. The Company operates through two segments: U.S. and International. The U.S. segment primarily consists of amounts earned through product sales through Wayfair's family of sites in the U.S. The International segment primarily consists of amounts earned through product sales through the Company’s international sites. It operates as Wayfair.ca in Canada, Wayfair.co.uk in the United Kingdom and Wayfair.ie in Ireland.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wayfair Exceeds Q4 Earnings Expectations with Strong Revenue Growth
- Earnings Beat: Wayfair reported adjusted earnings per share of $0.85 for Q4, surpassing the analyst consensus of $0.66, indicating improved profitability despite a challenging market environment.
- Significant Sales Growth: Quarterly sales reached $3.337 billion, up 6.9% year-over-year, exceeding the Street's expectation of $3.301 billion, demonstrating the company's ability to maintain growth in a competitive landscape.
- Active Customer Decline: As of December 31, 2025, active customers totaled 21.3 million, a slight decrease of 0.5% year-over-year, reflecting challenges in customer acquisition, although repeat customers accounted for 79.1% of total orders.
- Optimistic Outlook: Wayfair anticipates mid-single-digit year-over-year revenue growth for Q1 2026, with gross margins projected between 30% and 31%, indicating confidence in future market performance.
See More
Key Wall Street Calls on Friday
- Pharmaceutical Leadership: Barclays upgraded Eli Lilly to overweight, asserting that its GLP-1 drugs signify a durable structural shift in obesity treatment, positioning the company for sustained long-term growth as a market leader.
- E-commerce Valuation Boost: Barclays raised Etsy's rating from equal weight to overweight, anticipating that as topline growth improves, EBITDA valuations will expand, setting a price target of $72, reflecting optimism about future performance.
- Tech Stock Buying Opportunity: Citigroup reiterated Microsoft as a buy, highlighting that the stock is at a decade low valuation and trading at a discount to the S&P 500 on forward P/E, suggesting investors should seize the buying opportunity.
- Aerospace Service Growth: Morgan Stanley upgraded GE Aerospace to overweight with a price target of $425, citing the company's advantages in durable service growth, pricing power, and a strong balance sheet, with future free cash flow likely underestimated.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
See More
Wayfair Inc. Reports Strong Q4 2025 Earnings with Revenue Growth and Strategic Initiatives
- Significant Revenue Growth: Wayfair achieved a 7.8% year-over-year increase in net revenue for Q4 2025, excluding the impact from Germany, indicating strong performance in both orders and average order value (AOV), which reflects the accelerating momentum of the company's business recovery.
- Successful Loyalty Program: The Wayfair Rewards program attracted over 1 million members in its first year, contributing over 15% of U.S. revenue, with members purchasing significantly more frequently than non-members, highlighting the program's potential to enhance customer loyalty and market share.
- Technology-Driven Strategy: CEO Niraj Shah emphasized leveraging AI technology to enhance the shopping experience and plans to drive future growth through strategies that improve core selection, pricing, and delivery, demonstrating the company's commitment to technology investment.
- Improved Cash Flow and Profitability: Adjusted EBITDA reached $224 million in Q4, with net leverage dropping below 2.5x and free cash flow increasing over 40%, indicating significant improvements in the company's financial health and operational efficiency.
See More
U.S. Markets Fell on Thursday; Klarna Group Reported Largest Loss
- U.S. Stock Market Performance: Stock indexes in the U.S. experienced a decline on Thursday, with the overall market falling by 0.54%.
- Specific Index Movements: The S&P 500 index decreased by 0.31%, while the Dow Jones Industrial Average dropped by 0.28%.
See More
Wayfair Exceeds Q4 Earnings Expectations with Strong Revenue Growth
- Earnings Beat: Wayfair reported adjusted earnings per share of $0.85 for Q4, surpassing the analyst consensus of $0.66, indicating improved profitability despite a challenging market environment.
- Significant Sales Growth: Quarterly sales reached $3.337 billion, up 6.9% year-over-year, exceeding the Street's expectation of $3.301 billion, demonstrating the company's ability to maintain growth in a competitive landscape.
- Active Customer Decline: As of December 31, 2025, active customers totaled 21.3 million, a slight decrease of 0.5% year-over-year, reflecting challenges in customer acquisition, although repeat customers accounted for 79.1% of total orders.
- Optimistic Outlook: Wayfair anticipates mid-single-digit year-over-year revenue growth for Q1 2026, with gross margins projected between 30% and 31%, indicating confidence in future market performance.
See More
Key Wall Street Calls on Friday
- Pharmaceutical Leadership: Barclays upgraded Eli Lilly to overweight, asserting that its GLP-1 drugs signify a durable structural shift in obesity treatment, positioning the company for sustained long-term growth as a market leader.
- E-commerce Valuation Boost: Barclays raised Etsy's rating from equal weight to overweight, anticipating that as topline growth improves, EBITDA valuations will expand, setting a price target of $72, reflecting optimism about future performance.
- Tech Stock Buying Opportunity: Citigroup reiterated Microsoft as a buy, highlighting that the stock is at a decade low valuation and trading at a discount to the S&P 500 on forward P/E, suggesting investors should seize the buying opportunity.
- Aerospace Service Growth: Morgan Stanley upgraded GE Aerospace to overweight with a price target of $425, citing the company's advantages in durable service growth, pricing power, and a strong balance sheet, with future free cash flow likely underestimated.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
US Stock Market Under Pressure Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.26%, the Dow Jones Industrial Average by 0.28%, and the Nasdaq 100 by 0.34%, reflecting market concerns over the outlook for artificial intelligence, particularly with poor performances from chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell by 23,000 to 206,000, marking a 5-week low and indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations and suggesting challenges in economic recovery.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, demonstrating resilience in corporate earnings.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 2% to a three-week high due to military buildup in the Middle East, potentially increasing inflationary pressures, which could affect market sentiment and investor confidence.
See More
Wayfair Inc. Reports Strong Q4 2025 Earnings with Revenue Growth and Strategic Initiatives
- Significant Revenue Growth: Wayfair achieved a 7.8% year-over-year increase in net revenue for Q4 2025, excluding the impact from Germany, indicating strong performance in both orders and average order value (AOV), which reflects the accelerating momentum of the company's business recovery.
- Successful Loyalty Program: The Wayfair Rewards program attracted over 1 million members in its first year, contributing over 15% of U.S. revenue, with members purchasing significantly more frequently than non-members, highlighting the program's potential to enhance customer loyalty and market share.
- Technology-Driven Strategy: CEO Niraj Shah emphasized leveraging AI technology to enhance the shopping experience and plans to drive future growth through strategies that improve core selection, pricing, and delivery, demonstrating the company's commitment to technology investment.
- Improved Cash Flow and Profitability: Adjusted EBITDA reached $224 million in Q4, with net leverage dropping below 2.5x and free cash flow increasing over 40%, indicating significant improvements in the company's financial health and operational efficiency.
See More
U.S. Markets Fell on Thursday; Klarna Group Reported Largest Loss
- U.S. Stock Market Performance: Stock indexes in the U.S. experienced a decline on Thursday, with the overall market falling by 0.54%.
- Specific Index Movements: The S&P 500 index decreased by 0.31%, while the Dow Jones Industrial Average dropped by 0.28%.
See More
