By Prerna Bedi

(Reuters) -Wayfair shares soared nearly 23% on Tuesday, as the U.S. online furniture retailer's third-quarter results and upbeat forecasts allayed investor worries over the impact of the latest tariffs.

Furniture retailers have struggled to gauge consumer appetite as housing demand has been uneven amid economic uncertainty.

U.S. President Donald Trump's 50% duty on imported kitchen cabinets and bathroom vanities, as well as a 30% levy on upholstered furniture beginning October 1 amplified the worries.

"We really have not seen any consumer behavior based on the tariffs...the minor, minor pull forwards we saw lasted days in duration and were very small. So, we don't really think there's any tariff-induced behavior," CEO Niraj Shah said on a conference call with investors.

The Boston, Massachusetts-headquartered firm, which relies heavily on imports from China and Vietnam, forecast fourth-quarter net revenue to be up in mid-single digits counting on a holiday season, in line with previous years.

Shah highlighted the lift from the company's customer loyalty programs, as well as a rising number of retail stores.

The firm posted revenue of $3.12 billion for the third quarter ended September 30, above estimates of $3.02 billion.

"Wayfair competes in an incredibly fragmented category that includes everyone from Ikea and Crate & Barrel to Walmart and Costco. That fragmentation actually works in its favor," said Zak Stambor, senior analyst at eMarketer.

"Wayfair is showing it can grow efficiently, hang on to its core customers, and turn that loyalty into real profits."

Adjusted profit of 70 cents per share also comfortably topped expectations of 43 cents, according to data compiled by LSEG.

Wayfair's shares have more than doubled so far this year and its 12-month forward earnings multiple, a common benchmark for valuing stocks, of 39.94 remained far ahead of competitor Williams-Sonoma's 21.40.

(Reporting by Prerna Bedi in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)