Overview
- Wayfair said Tuesday that second-quarter net revenue rose 7.5% to $3.52 billion and adjusted earnings per share were $0.95, both above analyst forecasts.
- U.S. sales jumped 8.7% to $3.1 billion, the company’s strongest domestic growth since 2020, which management tied to market-share gains from traditional brick-and-mortar retailers.
- Higher-margin channels drove outperformance: specialty retail brands grew nearly 20% and luxury banner Perigold rose more than 35%, helping average spending per active customer increase.
- Profitability and cash generation improved materially as free cash flow reached $301 million and adjusted EBITDA was $242 million, even though GAAP results showed a $1 million net loss for the quarter.
- Wayfair gave mid-single-digit revenue guidance for Q3 and forecast gross margins near 29.5%–30.5%, while markets and analysts reacted unevenly with a sharp intraday rally after some early volatility.