wayfair The company said Wednesday it posted its strongest quarterly sales growth since the pandemic, as the furniture retailer continues to win customers and gain market share.
The company announced double-digit sales growth in the United States, reaching approximately $3 billion, an 11.4% year-over-year increase. Still, international net revenue for the quarter was $380 million, down 2.3% from the year-ago period.
Wayfair stock ended Wednesday up about 11%.
The report was released as the housing market remains depressed. However, the furniture and home goods retailer has reported consistent growth over the past year. CFO Kate Gulliver told CNBC that Wayfair is gaining momentum to gain market share.
“We see consumers across the U.S. in this category, and we think it’s about flat, so our (market) share momentum continues to grow,” Gulliver said.
She added that shopper loyalty, new store openings, the company’s high-end furniture business and focus on value have helped Wayfair reach more consumers. He added that customers continue to spend on the company’s value-priced and luxury products.
“We’ve been focusing on promotions for the last few years, and this year’s promotional efforts are actually very consistent with last year,” she said. “We are continuing this momentum of promotional activities this year.”
Here’s how the company’s third-quarter results compare to Wall Street expectations, based on a survey of analysts by LSEG.
Earnings per share: 93 cents adjusted, 79 cents expected; Revenue: $3.42 billion, $3.38 billion expected.
For the period ended Sept. 30, Wayfair reported net income of $62 million, or 45 cents per share, compared with a loss of $99 million, or 76 cents per share, in the year-ago period.
Total revenue increased 9.7% year over year to $3.42 billion.
According to the company, the number of active customers increased by 4.7% year-on-year to 22.2 million. Additionally, the number of orders delivered during the quarter increased by 12.2% to approximately 11 million orders.
Looking ahead to the holiday season and the fourth quarter, Gulliver said the company is maintaining similar promotional efforts to last year. He added that Wayfair believes its range of prices and products will appeal to a wide range of consumers.
“We’ve seen the growth take place,” Gulliver said. “We saw that translate into EBITDA and ultimately positive net income for the quarter. This is just another important part of this story and momentum, so we feel very good about our performance for this quarter.”
