Furniture stocks rise after delayed tariff increases

Investing.com -- Shares of U.S. home-furnishings retailers rose in premarket trading Friday after the Trump administration delayed planned tariff hikes on a range of furniture categories, giving the sector what Mizuho described as “some breathing room for ’26.”

Wayfair gained 1.7%, while Williams-Sonoma rose 1.1% and RH added 3.3%.

In a note to clients, Mizuho said the decision to push back higher tariff rates by one year to Jan. 1, 2027, means existing duties will remain in place.

Upholstered furniture will stay at a 25% tariff instead of rising to 30%, and kitchen cabinets and vanities will also hold at 25% rather than moving to 50%.

The analysts wrote that the update “gives some breathing room for the sector and for Wayfair,” noting that the company’s marketplace structure “has absorbed pricing well to date, flexing product sourcing where appropriate and avoiding direct margin pressure.”

The brokerage cautioned that “all this remains fluid” and added that industry demand “is still choppy.”

Even so, Mizuho said structural changes within Wayfair’s business are helping it take market share, with tariffs increasingly “allowing the big to get bigger.”

Looking ahead, the bank said it “fully expect[s] adjusted EBITDA growth to outpace revenue for Wayfair in FY26E given a framework for mid-teens incremental margins.” Mizuho added that “lighter tariffs” could support “another leg higher for shares,” reiterating its Outperform rating on Wayfair.

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