In the second quarter ending June 30, Wayfair's sales in the U.S. rose by 8.7% to $3.1 billion, marking the highest growth for the region since 2020. This increase contributed to a free cash flow of $301 million, the best since the pandemic began.
Wayfair's finance chief, Kate Gulliver, noted that the company is gaining market share primarily from brick-and-mortar competitors, while CEO Niraj Shah highlighted strong performance from its luxury brand Perigold, which grew over 35%.
The company reported adjusted earnings per share of 95 cents, surpassing the expected 89 cents, and revenue of $3.52 billion, exceeding the forecast of $3.47 billion. Despite a slight loss of $1 million compared to a profit of $15 million a year earlier, Wayfair's adjusted EBITDA of $242 million also beat expectations.
The number of orders delivered and active customers exceeded analyst estimates, although the average order value fell short of expectations. Wayfair's ability to attract consumers seeking value amid high costs is crucial as the overall home goods market faces pressures from tariffs and a sluggish housing market