Bob's Discount Furniture's (BOBS) Q2 beat demonstrated sustained market share gains, and maintaining its 2026 guidance should build confidence ahead of tough comparisons in Q3, RBC Capital Markets said in a Thursday research report.

The company witnessed growing penetration of higher-income households in Q2, the analysts said, noting that gross margins are expected to end flattish this year.

Management believes traffic trends have performed relatively better than the competition, but expects H2 pressures related to higher ocean freight surcharges, raw material price hikes, and greater fuel-linked delivery costs, according to the note.

RBC reiterated its outperform rating on the stock and boosted its price target to $22 per share from $19.

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