[Wayfair Posts 10% Sales Surge as It Expands Market Share in Sluggish Market]
Wayfair on Wednesday said it posted its strongest quarter of sales growth since the pandemic as the furniture retailer continues to win over customers and capture market share.
The company reported double-digit revenue growth in the United States, reaching approximately $3 billion—a 11.4% increase year over year. However, international net revenue declined 2.3% to $380 million.
Wayfair’s shares climbed roughly 10% on Wednesday.
While the housing market remains sluggish, the furniture and home goods retailer has demonstrated consistent growth over the past twelve months. CFO Kate Gulliver told CNBC that Wayfair’s momentum is building as it secures greater market share.
“We view the overall U.S. consumer in this category as roughly flat, and that’s why our market share momentum continues to strengthen,” Gulliver said.
She added that shopper loyalty, the opening of new stores, the expansion of the luxury furniture division, and an emphasis on value pricing have enabled Wayfair to attract more consumers.
Customers are continuing to spend, whether at the company’s value‑focused tiers or the luxury segment, she added.
“We have been highly promotional over the past few years, and the promotional activity this year is actually consistent with last year,” Gulliver said. “It maintains momentum in promotional activity this year.”
Here’s how the company performed in its third quarter versus Wall Street expectations, based on a survey of analysts by LSEG:
- Earnings per share: 93 cents adjusted versus 79 cents expected
- Revenue: $3.42 billion versus $3.38 billion expected
For the period ending September 30, Wayfair reported net income of $62 million, or 45 cents per share, compared with a loss of $99 million, or 76 cents per share, the prior year.
Total revenue grew 9.7% year over year, reaching $3.42 billion.
The company noted that active customers increased 4.7% year over year, reaching 22.2 million. It also saw a 12.2% rise in orders delivered during the quarter, amounting to roughly 11 million.
Looking ahead to the holiday season and the fourth quarter, Gulliver said it is maintaining promotional activity similar to last year. She added that Wayfair is confident its pricing range and product offering will appeal to a broad consumer base.
“We have seen that growth materialize,” Gulliver said. “We have seen it flow through to EBITDA, ultimately to positive net income this quarter, which is a key piece of the performance story and reinforces our momentum,” she concluded.
