Wayfair shares rose by more than 21% on Tuesday after the online home goods retailer reported quarterly results that topped Wall Street expectations, buoyed by higher sales and improved cost discipline.
The company said total net revenue climbed 8.1% year-on-year to $3.12 billion, surpassing analysts’ forecast of $3.02 billion, according to LSEG data.
Adjusted earnings per share came in at 70 cents, well above the 43 cents expected, marking a solid rebound for the retailer after a challenging post-pandemic period.
For the quarter ended September 30, Wayfair posted a net loss of $99 million, or 76 cents per share, compared with a loss of $74 million, or 60 cents per share, a year earlier.
The company attributed the improvement in adjusted results to stronger revenue growth and operational efficiencies.
US business drives growth as international sales improve
Domestic operations continued to lead the company’s performance, with US revenue increasing 8.6% to $2.7 billion.
International revenue grew 4.6% year-on-year to $389 million. Excluding its recent exit from Germany, total net revenue rose 9%.
Wayfair’s growth stands out in a home goods sector that has been struggling with inflation, high interest rates, and subdued home sales.
Many retailers have also faced uncertainty tied to President Donald Trump’s tariff policies on imported furniture.
However, Chief Financial Officer Kate Gulliver told CNBC that Wayfair’s recent momentum is not driven by broader macroeconomic trends.
“We think it’s really being driven by our share gain, and that, we believe is really coming from a confluence of factors and initiatives that we started over a year ago that are now starting to bear fruit,” Gulliver said.
Wayfair opened its first large-format store in Illinois last year and plans to launch another in Yonkers, New York, in early 2027.
Profitability and operational efficiency on the rise
Chief Executive Officer Niraj Shah said delivered orders rose 5% year-on-year in the quarter, while adjusted EBITDA margin reached 6.7% — the company’s highest level outside the pandemic period.
“Substantial profitability flow through is powered by a strong contribution margin and fixed cost discipline as our business has returned to growth,” he said.
Active customers totaled 21.2 million, down 2.3% from the previous year, though Shah emphasized that the company’s growth trajectory remains independent of a housing market rebound.
He also noted that any tariff-related buying activity — such as the temporary uptick in large appliance purchases earlier this year — had limited impact on overall results.
“We see our outperformance as structural share capture driven by strong execution and early success of new programs,” Shah said.
Market outlook remains optimistic
Wayfair shares have surged about 95% this year, outperforming peers in the home goods and e-commerce sectors despite tariff volatility and inflation pressures.
Analysts remain broadly positive on the stock: 19 rate it a “buy” or “strong buy,” 18 suggest “hold,” and none recommend “sell,” according to LSEG data.
Wall Street’s median 12-month price target for Wayfair is $88, representing modest upside from its last closing price of $86.45.
With revenue momentum building and cost initiatives gaining traction, Wayfair appears to be regaining investor confidence after years of sluggish growth.
Its focus on operational efficiency and market share expansion suggests continued strength heading into 2026.
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