Wayfair CEO Says Best Growth Since Pandemic Is Just the Beginning

Wayfair Inc. (NYSE:W) stock rose Wednesday after the home furnishings retailer reported better-than-expected third-quarter results that beat Wall Street estimates.

Wayfair reported adjusted earnings of 93 cents per share, beating the analyst consensus estimate of 79 cents.

Revenue rose 9.7% year over year to $3.42 billion, topping Wall Street’s estimate of $3.38 billion.

Wayfair’s U.S. Revenue Jumps Double Digits

U.S. net revenue increased 11.4% to $3 billion, driven by higher order volumes and customer growth.

International revenue fell 2.3% to $380 million, down 1.8% in constant currency.

CEO, co-founder and co-chairman Niraj Shah said Wayfair delivered its strongest growth since the pandemic.

He highlighted double-digit U.S. revenue growth despite a largely flat home furnishings market.

Shah said the company’s market share gains are structural and expects the momentum to continue into 2027 and beyond.

He pointed to customer loyalty programs, faster deliveries and new retail stores as key growth drivers.

“We are very excited by the trajectory we are on, and we are still in the early innings,” Shah said.

Wayfair’s Profitability Improves

Adjusted gross profit rose to $1.01 billion from $937 million a year earlier.

Adjusted EBITDA increased to $236 million from $208 million, with a margin of 6.9%. That marked Wayfair’s strongest third-quarter margin since 2020.

Wayfair reported GAAP net income of $62 million, reversing a $99 million loss a year earlier.

The company ended the quarter with $1.1 billion in cash, cash equivalents and short-term investments. Total liquidity reached $1.5 billion, including its revolving credit facility.

Customer Growth and Orders Accelerate

Active customers increased 4.7% year over year to 22.2 million.

Orders delivered jumped 12.2% to 11 million, while average order value slipped to $311 from $317.

Repeat customers accounted for 80% of total orders.

Wayfair Sees More Growth Ahead

Chief Financial Officer Kate Gulliver told CNBC that Wayfair continues to gain market share despite sluggish demand across the U.S. home furnishings industry.

She credited stronger customer loyalty, new stores, luxury furniture expansion and competitive pricing for the gains.

Gulliver said consumers continue to spend across both budget and premium categories. Looking ahead, she expects holiday promotions to remain similar to last year.

She also highlighted improving profitability as stronger sales boosted adjusted EBITDA and helped Wayfair return to a quarterly net profit.

W Price Action: Wayfair shares were up 9.91% at $116.50 at the time of publication on Wednesday. The stock is approaching its 52-week high of $122.12, according to Benzinga Pro data.

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