Shares of Wayfair Inc. (W) and Williams-Sonoma, Inc. (WSM) are on the rise in Thursday’s after-hours trading session, riding the coattails of RH’s (RH) impressive second-quarter results. The furniture retailer’s stock is soaring after it surpassed analyst estimates for both earnings and revenue. RH’s optimistic outlook for the third quarter, with a projected revenue growth of 7% to 9%, has further fueled the positive sentiment.
This positive news from RH has spilled over into the broader home goods sector, benefiting companies like Wayfair and Williams-Sonoma.
Gary Friedman, CEO of RH, expressed his enthusiasm about the company’s recent performance, noting that demand has been steadily increasing, with July seeing a 10% rise and August marking a 12% surge. He also highlighted the positive trend in product margins, despite operating in a challenging housing market.
The market reacted swiftly to these positive developments. According to Benzinga Pro, Wayfair shares are up 4.56% after-hours, trading at $46.82, while Williams-Sonoma shares are up 3.78%, reaching $141 at the time of publication. RH’s robust performance has injected optimism into the home goods sector, and investors seem eager to capitalize on this positive momentum.
