Wayfair U.S. revenue up double digits with strongest sales growth since pandemic
Wayfair Inc. reported a strong third quarter, driven by increases in active customers and orders delivered.
The online home furniture and décor giant topped analysts expectations and said it is continuing to take market share in a flat category amid a still-sluggish housing market. Looking further out, it sees even more opportunity.
“You have heard us say this many times, but our success has been independent of the macro, and when the category does return to growth, that spread will apply to a much larger base,” Wayfair co-founder and CEO Niraj Shah said on the earnings call.
Wayfair, which opened its first physical location in 2024, is continuing to expand its footprint. The company recently added another location to its pipeline, with plans to open at Market Place at Garden State Park in Cherry Hill, N.J., in 2028.
Third Quarter
Net income totaled $62 million, or $0.45 cents per share, for the quarter ended Sept. 30, compared with a loss of $99 million, or a loss of $0.76 per share, the year prior. Adjusted earnings per share of $0.93 easily topped analysts estimates of $0.79 per share.
Third-quarter total revenue grew 9.7% to $3.42 billion, ahead of estimates of $3.38 billion. U.S. net revenue, which jumped 11.4%, totaled $3.0 billion.
Active customers rose 4.7% to 22.2 million. Orders delivered during the quarter increased 12.2% to approximately 11 million. Average order value was $311 compared to $317 in the year-ago quarter.
“Q3 was our strongest quarter of growth in the post-pandemic period, with total net revenue up 9.7% year over year and our U.S. business growing over 11%,” Shah said in the earnings statement. “That growth flowed through nicely to the bottom line, with an adjusted EBITDA Margin of 6.9%, our best Q3 result since 2020.”
Shah noted that, at the start of this year, Wayfair said it expected to take share in the U.S. at a pace it had not seen in several years.
“With U.S. revenue growing double digits against a roughly flat category here in Q3, we've done exactly that,” he said. “The momentum we have on orders and customers give us confidence that our share gains are structural, and we are still in the early innings."
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Headquartered in Boston, Wayfair Inc.’s brands include Wayfair, AllModern, Perigold, Birch Lane, Joss & Main and Wayfair Professional.
