Wayfair stock rebound reveals a major furniture shift

Wayfair stock rebound reveals a major furniture shift Aparajita Chatterjee Thu, June 25, 2026 at 12:47 AM GMT+7 8 min read W Buying furniture has been a harder sell for retailers over the past few years. When mortgage rates are high and home sales slow, consumers feel stretched. That tends to make shoppers delay big home purchases. A couch, dining set, bed frame, or outdoor patio set can usually wait longer than groceries, gas, or other essentials. This usually creates a difficult backdrop for home retailers, furniture chains, and online sellers such as Wayfair. But new spending data suggests the category may be getting a better setup, especially for retailers that can capture shoppers online while also giving them more ways to see and test products in person. And for Wayfair, which built its business as an online home retailer but is now expanding deeper into physical stores, this report is important. The company reported first-quarter earnings on April 30, but a fresher signal came from May retail sales data, which was released on June 17. The official data showed online shopping was one of the stronger parts of the consumer economy. Bank of America’s Consumer Spend Collective report, shared with TheStreet, also noted e-commerce spending rose 13% year over year in May, while online penetration expanded 1.8 percentage points to 29.8%. This is a positive read-through for Wayfair because the company depends heavily on online demand for furniture, décor, housewares, and other home products. The broader retail sales report told a similar story. The U.S. Census Bureau said nonstore retailers, a category that includes online shopping, rose 12.2% from a year earlier and 1.5% from April. This does not mean the home category is fully back, but it does mean online retail remains one of the strongest parts of consumer spending, even as shoppers remain selective. For Wayfair, that creates an important opening. Wayfair’s latest stock performance shows investors may already be looking for signs of a turn. Wayfair shares are up 26.54% over the past month. The stock is also up 10.85% over the past quarter and up around 73% over the past year. Still, the rebound has not erased all concerns. Shares remain down 15.48% year to date, suggesting investors are still weighing the company’s recovery against a difficult home-spending environment. Bank of America resets Nvidia stock forecast after CFO meeting JPMorgan resets FedEx stock rating ahead of June spinoff Bank of America resets AMD stock price target Wayfair’s first-quarter results showed why the stock has attracted renewed attention. The company reported net revenue of $2.9 billion, up 7.4% year over year. U.S. net revenue rose 7.5% to $2.6 billion, while international net revenue rose 6.0% to $319 million. Wayfair also returned to active customer growth. Active customers totaled 21.4 million at the end of the quarter, up 1.4% from a year earlier. That was an important change for a company that has spent several quarters trying to move beyond the post-pandemic home-goods slowdown. Orders delivered rose 3.3% to 9.4 million, and average order value increased to $312 from $301 a year earlier. Last-12-month net revenue per active customer rose 5.2% to $591. Those figures suggest Wayfair is not relying on a single source of growth. It is attracting more customers, generating more orders, and increasing spending per active customer. The company was still not profitable on a GAAP basis. Wayfair reported a net loss of $105 million in the first quarter. But that was narrower than its $113 million loss a year earlier. Its adjusted EBITDA rose to $151 million from $106 million, and adjusted diluted EPS rose to 26 cents from 10 cents. Wayfair CEO Niraj Shah said the company’s first-quarter revenue performance translated into “noteworthy profitability,” adding that its 5.2% adjusted EBITDA margin was its best first-quarter result in five years. Wall Street’s reaction to Wayfair’s Q1 2026 earnings highlighted the tension around the stock. Analysts broadly acknowledged that Wayfair is executing better, gaining market share, improving unit economics, and delivering stronger adjusted EBITDA. But several firms still lowered their price targets because the home-furnishings category remains soft and near-term growth catalysts look limited. Citi lowered its Wayfair price target to $95 from $110 while keeping a Buy rating, while Mizuho cut its target to $90 from $110 and kept an Outperform rating. Baird lowered its target to $76 from $85 and kept an Outperform rating, noting that first-quarter results were solid but that near-term catalysts may be limited. Morgan Stanley cut its target to $110 from $128 while keeping an Overweight rating, citing softer industry demand and slower topline momentum, even as it continued to view Wayfair as a long-term market-share gainer. Other firms took a similarly cautious view. Goldman Sachs lowered its target to $79 from $92

Wayfair stock rebound reveals a major furniture shift

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