Wayfair Inc. reported stronger-than-expected third-quarter results on Tuesday, sending its shares up nearly 10% in premarket trading. The online home goods retailer posted growth on both the top and bottom lines, signaling a rebound in consumer demand despite broader weakness in the home furnishing sector.
For the quarter ended September 30, Wayfair’s total net revenue rose 8.1% year-over-year to $3.12 billion, surpassing analyst estimates of $3.02 billion. Adjusted earnings per share came in at $0.70, well above expectations of $0.43. However, the company reported a net loss of $99 million, or $0.76 per share, compared to a $74 million loss, or $0.60 per share, in the same period last year.
Region-wise, U.S. revenue increased 8.6% YoY to $2.7 billion, while international sales rose 4.6% to $389 million. Excluding its exit from Germany, total net revenue jumped 9% YoY. CEO Niraj Shah noted that delivered orders grew 5% YoY and that the company achieved a 6.7% adjusted EBITDA margin — the highest level in Wayfair’s history outside the pandemic period.
CFO Kate Gulliver told CNBC that the company’s growth was driven primarily by market share gains rather than macroeconomic tailwinds, citing initiatives like better pricing, product availability, faster delivery, and expanding physical retail presence.
Wayfair’s ongoing turnaround efforts include its “core recipe” strategy and expansion into brick-and-mortar retail. After opening its first large-format store in Illinois, the company plans to open another in Yonkers, New York, in early 2027.
Despite lingering tariff concerns under President Donald Trump’s trade policies, Wayfair’s stock has surged 95% year-to-date, supported by operational improvements and renewed consumer traction.
At the end of the quarter, the company reported 21.2 million active customers, a slight 2.3% decline year-over-year, as it continues to balance growth and profitability.
