Wayfair (NYSE:W) shares rose more than 27% since the company’s reported Q1 results on Thursday, with EPS of ($1.13), coming in better than the Street estimate of ($1.71). Revenue was $2.8 billion, beating the Street estimate of $2.74 billion.

While highlighting better-than-expected Q1 revenue, a meaningful EBITDA beat, and encouraging cost progress, analysts at RBC Capital believe more macro clarity is needed to get constructive.

Management shared that quarter-to-date gross revenue is trending down high-single-digits year-over-year though it expects improvement over the quarter due to easier comparisons in May/June. The team expects Q2 net sales to improve just under 10% quarter-over-quarter, which implies a 7-8% decline year-over-year.