What happened

Wayfair (W -1.25%) stock trailed the market last month by falling 10% compared to a 1.8% uptick in the S&P 500, according to data provided by S&P Global Market Intelligence.

The decline hardly registered for most shareholders, as the stock remains higher by over 70% so far in 2019 and over 130% in the past full year.

A modern appointed living room.

Image source: Getty Images.

So what

March's decline likely had something to do with profit taking on Wall Street following the prior month's 51% spike. The home furnishings retailer reported soaring sales growth in late February, but its ongoing lack of profitability leaves the stock's valuation susceptible to large swings.

Wayfair stock was also pressured by news that a key rival, Overstock (BYON -2.58%), has stabilized its business and is optimistic that a market share rebound could occur over the next year.

Now what

Wayfair's strength in the industry will be reflected in key growth and profitability metrics in the coming quarters. If these numbers keep improving, as they did in 2018, then investors will know that the competition still hasn't knocked the chain off its stride. In the meantime, management has its sights set on expanding internationally and building an even more robust delivery platform in the U.S. market. Spending on these projects should support further growth but will lead to another year of operating losses.