Wayfair reported second-quarter results on Tuesday that surpassed analyst expectations, with U.S. revenue growing 8.7% — the strongest performance in the domestic market since the pandemic-era surge of 2020.
The online home goods retailer beat Wall Street expectations on revenue and earnings as U.S. sales grew 8.7% year over year
Wayfair reported second-quarter results on Tuesday that surpassed analyst expectations, with U.S. revenue growing 8.7% — the strongest performance in the domestic market since the pandemic-era surge of 2020.
U.S. net revenue reached $3.1 billion in the three months ended June 30, up from $2.9 billion a year earlier. Total net revenue came in at $3.52 billion, up 7.5% year over year. Wall Street had expected revenue of $3.47 billion, according to CNBC.
On a per-share basis, Wayfair reported a GAAP loss of 1 cent. Adjusted earnings came in at 95 cents per share. Analysts had expected adjusted earnings of 89 cents per share.
Shares of Wayfair surged 18% in premarket trading on the results.
Adjusted EBITDA reached $242 million during the quarter, above analyst estimates of $230 million. Free cash flow hit $301 million — also the strongest since 2020, the company said.
The company fulfilled 10.6 million orders in the quarter, reflecting a 6% year-over-year rise, and its active customer base expanded 3.3% to reach 21.7 million. Average order value was $332, up from $328 in the same period a year earlier.
CEO and co-founder Niraj Shah pointed to gains in the company's higher-end brands as a driver of results. "We saw noteworthy outperformance from our specialty retail brands, which grew by nearly 20% in the second quarter, and Perigold, which grew by more than 35%," Shah said in a statement.
In a CNBC interview, CFO Kate Gulliver credited the company's gains to shoppers it has drawn away from traditional brick-and-mortar retailers, even as a "stalled" housing market continues to weigh on the broader category.
International net revenue slipped 1.3% to $394 million, while the U.S. segment drove all of the company's top-line momentum. U.S. adjusted EBITDA was $261 million, compared with $224 million a year earlier.
Shah said in the earnings release that revenue growth in the U.S. was the best seen in the entire post-COVID period, with the company holding a high single-digit market share spread since last fall. He added that the company expects further acceleration as its initiatives play out.
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