Wayfair reports strongest growth since pandemic
Wayfair Inc. exceeded earnings and revenue expectations for its second quarter, helped by a strong performance from its luxury brand.
The digitally native home furnishings brand reported its second-quarter results the day after it announced its upcoming entry into another state, Pennsylvania, as it continues to add more upcoming locations to its 2027 store lineup.
“We saw the best sequential growth we've seen in a Q2 since the second quarter of 2020,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “In fact, revenue growth in the U.S. was the best we've seen in the entire post-COVID period, with nearly 9% year-over-year revenue growth, continuing the high single digit share spread we've held since last fall.”
Shah added that the company saw “noteworthy” outperformance from its specialty retail brands during the second quarter, which grew by nearly 20%. Sales grew by more than 35% at Wayfair’s luxury brand Perigold.
“We are excited to see ramping growth in the Wayfair business and complementing that with outsized growth from our specialty and luxury brands, all building to why we expect to see even further acceleration as our numerous initiatives play out,” he said.
On the earnings call, Shaw said that Perigold is doing a bit over $400 million a year in sales, but growing quickly and doing so profitably. The brand's customer base spends almost three times more than a typical Wayfair.com shopper in a single year.
Based on early results of Perigold's two brick-and-mortar stores (Houston and West Palm Beach, Fla.), the company's goal over the next several years is to grow its store presence across the country's luxury markets using the same test-and-scale approach it has used across every other part of the company, Shaw said.
"We have a clear line of sight to grow Perigold into a multibillion-dollar business in the years ahead," he told analysts.
Second Quarter
The digitally-native home furnishings giant reported a loss of $1 million, or $0.01 per share, for the quarter ended June 30, compared with a profit of $15 million, or $0.11 per share, in the year-ago period. Adjusted earnings totaled $0.95 per share, topping analysts’ expectations of $0.89 per share.
Total net revenue rose 7.5% to $3.5 billion, topping analysts expectations of $3.47 billion. U.S. net revenue increased 8.7% to $3.1 billion. International sales fell 1.3%.
“That macro improvement did not extend to our end markets in Canada or the U.K., which both saw continued pressure on consumer sentiment and discretionary spending,” Wayfair CFO Kate Gulliver said on the earnings call.
Wayfair’s average order value in the second quarter was $332, compared to $328 in the year-ago quarter. Active customers totaled 21.7 million, up 3.3% year over year. LTM net revenue per active customer was $596, up 4.2% year over year. Repeat customers placed 8.5 million orders in the second quarter of 2026, an increase of 4.9% year over year.
Orders delivered in the second quarter were 10.6 million, an increase of 6.0% year over year. Repeat customers placed 80.2% of total orders, compared to 80.7% in the second quarter.
On the earnings call, Wayfair CFO Kate Gulliver said the company’s second-quarter improvement did not extend to its end markets in Canada or the U.K., both of which saw continued pressure on consumer sentiment and discretionary spending. International sales fell 1.3%.
In addition to its namesake brand, the Wayfair portfolio includes AllModern, Birch Lane, Joss & Main, Perigold and Wayfair Professional.
