Wedbush downgrades Wayfair on tariff concerns, tepid growth expectations

RH

06/01/2025 13:40

** Wedbush downgrades online furniture retailer Wayfair
 W.N  to "neutral" from "outperform"
    ** Brokerage sees limited room for Wayfair to re-accelerate
slowing share gains in 2025; also notes downside risk from
tariffs given company's high exposure to imports and a
price-sensitive mass market customer base
    ** Despite easy comparisons (for home furnishings industry),
"we expect slightly below trend growth due to a back-half
weighted housing growth outlook, muted consumer confidence to
buy big-ticket durables and downside risks from possible
tariffs" - Wedbush analyst Seth Basham
    ** Wedbush adds luxury furniture retailer RH  RH.N  to its
best ideas list on company's new gallery efforts, limited
exposure to China and a more affluent customer base less
impacted by inflation
    ** Wayfair stock fell 28% in 2024, while RH gained 35%

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com))