Two stocks surged Monday in the wake of President Donald Trump's latest tariff announcement, and both now may be positioned for a great 2026.
I'm talking about online home furnishings retailer Wayfair (W +0.93%) and luxury furniture retailer RH (RH 4.56%).
NYSE: W
Key Data Points
On the last day of 2025, the White House announced it was delaying the previously announced tariff increases for upholstered furniture, kitchen cabinets, and vanities for another year.
In September, Trump announced 25% tariffs on furniture and cabinets, and said he would increase those taxes to 50% on cabinets and 30% on furniture this year. His reversal, delaying those tax hikes, was good news for furniture retailers, and investors expressed their enthusiasm Monday by sending Wayfair 6.5% higher and RH up 9.3%.
Image source: Getty Images.
Rising consumer spending this year could help these stocks
With those higher tariffs on hold and consumer discretionary spending potentially poised for a boost this spring due to the higher expected tax refunds stemming from the "big, beautiful bill," stocks of retailers like Wayfair and RH could have more upside in 2026. The Tax Foundation estimates that legislation, which cut 2025's taxes retroactively, could reduce individual taxes by $144 billion and lift the average refund by between $300 and $1,000.
NYSE: RH
Key Data Points
Due to intensifying concerns about higher prices, the stocks of Wayfair and RH went in different directions in 2025. The share price of upscale home furnishings chain RH (formerly known as Restoration Hardware) fell by about 50% during the year as consumers generally favored bargains over luxury goods. By contrast, shares of Wayfair, which sells discount furniture and has frequent sales and clearance events, soared by more than 130% during the year.
Both, however, rely heavily on imports -- and particularly imports from Asia -- to source their offerings. In general, Asian exporters dominate U.S. furniture imports.
Of course, much will also depend on the state of the U.S. housing market, which has been moribund in recent years due to higher mortgage rates, high prices, and limited supply. The two factors have combined to render a $300,000 home purchase unaffordable for the majority of U.S. households, while the median-priced new home was around $460,000 in 2025.
Things could change, however, in 2026. New home construction has picked up, leading to a growing supply of homes after several years of more limited inventory. And the Federal Reserve remains in easing mode, which should bring mortgage rates down, albeit gradually.
A delay on tariff hikes, coupled with rising affordability and some new life in the housing industry, could send shares of these two furniture retailers higher this year.
