Wayfair reported its strongest quarter of sales growth since the pandemic, saying it continued to attract customers and gain share in a sluggish furniture and home goods market. Revenue for the third quarter reached $3.42 billion, up 9.7% from a year earlier.
U.S. revenue rose 11.4% to about $3 billion, while international net revenue fell 2.3% to $380 million. The company reported adjusted earnings of 93 cents per share, above the 79 cents analysts had expected, and revenue also exceeded the $3.38 billion forecast, according to an LSEG survey.
For the quarter ended Sept. 30, Wayfair recorded net income of $62 million, or 45 cents per share. A year earlier, it reported a net loss of $99 million, or 76 cents per share. Active customers increased 4.7% to 22.2 million, and orders delivered rose 12.2% to about 11 million.
CFO Kate Gulliver said the U.S. market for the category was roughly flat, while Wayfair continued to build momentum in market share. She attributed the company’s customer gains to shopper loyalty, new store openings, its luxury furniture business and its focus on value.
Gulliver said promotional activity this year was consistent with last year’s levels. Looking ahead to the holiday season and the fourth quarter, she said Wayfair would maintain a similar approach and was confident its range of prices and products would appeal to a broad range of consumers. The company’s stock closed about 11% higher on Wednesday.
Sources: CNBC Markets.