Wayfair Revenue Hits $3.42 Billion in Strongest Quarter Since 2020

Wayfair reported $3.42 billion in total revenue for the quarter ended Sept. 30, marking the company's fastest sales growth since the pandemic began. This 9.7% year-over-year increase exceeded analyst expectations, which had projected revenue of $3.38 billion. The retailer also returned to profitability, recording net income of $62 million, or 45 cents per share, after posting a net loss of $99 million in the same period last year.

Domestic performance drove the results. United States sales climbed 11.4% to approximately $3 billion. International net revenue, however, declined 2.3% to $380 million. The company delivered adjusted earnings of 93 cents per share, surpassing the 79 cents per share estimated by analysts surveyed by LSEG. These figures indicate the retailer is gaining customers even as the wider housing market remains slow.

CFO Kate Gulliver told CNBC that the company is capturing a larger portion of a flat consumer category. She described the overall U.S. consumer behavior in furniture as roughly flattish, noting that Wayfair's market share momentum is continuing to build. Gulliver credited the gains to shopper loyalty, the opening of new physical stores, and growth in the luxury furniture segment. She added that customers continue to spend at both value price points and on higher-end items.

Operational metrics showed similar improvement. Active customers increased 4.7% year-over-year to reach 22.2 million. The company delivered 11 million orders during the quarter, a 12.2% rise from the previous year. These figures suggest a broader base of shoppers is engaging with the platform rather than just existing customers buying more.

Gulliver said the company plans to maintain promotional activity levels similar to those used last year for the holiday season. She stated that the range of prices and products should appeal to a broad base of consumers. The CFO noted that previous promotional efforts have resulted in growth flowing through to EBITDA and positive net income. She expressed confidence in the current quarter's performance based on these trends.

The shift from a loss to a profit represents a key change from the prior year. Last year's quarter saw a loss of 76 cents per share. This year's 45 cents per share gain reflects improved efficiency and revenue growth. The company's ability to grow in a sluggish market sets its current performance apart from its recent history.