Why Wayfair Stock Crushed the Market on Friday

It was good to be a furniture and home furnishing retailer on the last trading day of the week.

Largely on the news that a prominent industry peer had a stunning second quarter, Wayfair (W 5.74%) the stock rose in sympathy on Friday. The company’s share price rose nearly 6%, easily outpacing the 0.5% gain at the bell. S&P 500 index.

An equal exceeds

The rival with solid quarterly figures was RH (RH 25.49%)which revealed its latest set of numbers after market hours on Thursday. The company’s revenue and net income numbers beat analysts’ average estimates, and management expects demand for its goods to “accelerate” this year into next.

Wayfair is not RH, of course. Its customer demographic is broader, and until recently it was simply an online retailer (that changed in May 2024, when it opened the doors to an Illinois outlet).

However, furniture and home furnishings are a fairly narrow and specific retail category, so all things being equal, a good display by a large company in the field indicates a favorable environment for others.

Better results before, experts believe

Neither Wayfair stock nor RH stock will perform anytime soon on the former’s financial results. That’s because it’s currently on track to release third-quarter figures in November, and details of the previous period were revealed in early August. Regardless, analysts expect a decent track record from Wayfair on the bottom line — together they’re modeling a shift into the black, with net income of $0.14 per share versus a loss of $0.13 in Q3 2023. With however, revenue is expected to decline 3% to $2.89 billion.