12:40 PM EDT, 08/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Shares of furniture retailers are under pressure this morning after the Trump administration signaled potential new tariffs on imported furniture. While this represents another headwind for W, given that most of the goods on its platform are sourced internationally, the bigger impact is likely to fall on its 20,000+ suppliers. W operates primarily as a marketplace, connecting buyers and sellers. Because the assortment is largely unbranded and highly substitutable, competition among sellers is intense, and many have been reluctant to raise prices amid a multi-year downturn in the home furnishings market. Beyond pricing, W has other levers to offset tariffs and protect margins, including growth in sponsored ads (~1% of revenue today, with potential to reach 3%-4%) and increased use of its CastleGate logistics network. We keep our Hold rating as we await specific news on potential furniture tariff rates. We also have valuation concerns with the shares trading at an 18x forward EV/EBITDA.