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Wayfair share price surges 11% after it logs strongest quarter since pandemic boom

August 5, 2025
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Wayfair share price surges 11% after it logs strongest quarter since pandemic boom

Wayfair reported its strongest quarterly results since the pandemic-driven home furnishings boom, signaling a potential turnaround for the online retailer even as the broader furniture category continues to face headwinds.

The development sent its shares soaring by more than 11%.

For the second quarter ended June, the Boston-based company posted net revenue of $3.3 billion, a 5% increase from the year-ago period and ahead of Wall Street forecasts of $3.1 billion, according to FactSet.

In the US, Wayfair’s largest market, sales climbed 5.3%, further underscoring the company’s resilience amid weak industry demand.

Shares of Wayfair rose 6.5% to $69.51 in Monday morning trading, bringing the stock’s year-to-date gain to 60%.

Earnings and margins see significant improvement

Adjusted earnings came in at 87 cents per share, well above analyst expectations of 33 cents.

The company also reported adjusted EBITDA of $205 million — its highest since 2021 — reflecting improved operational efficiency and disciplined cost control.

On a GAAP basis, which includes one-time costs such as restructuring charges and the shutdown of its German operations, earnings stood at 11 cents per share.

That, too, beat analyst projections of a 33-cent per share loss.

“For years we’ve been talking about how the model is poised for flow through and significant profitability as we start to see topline recovery, and we really saw that manifest this quarter,” said Kate Gulliver, Wayfair’s chief financial officer, on a call with Barron’s.

US market offsets international contraction

The company’s exit from Germany impacted active customer growth, which fell 4.5% year-on-year to 21 million.

Executives noted that revenue would have risen 6% instead of 5% had the company remained in Germany.

Still, Wayfair remains confident that stronger performance in the US and other key geographies can offset the decline.

Gulliver highlighted growth in average order value, which increased to $328 from $313 in the same quarter last year.

The gain was driven by higher spending in Wayfair’s specialty retail and B2B segments, both of which cater to customers purchasing more expensive furnishings.

Path ahead: Market share gains and pricing stability

Looking ahead, Gulliver said the company expects third-quarter revenue to grow by a low to mid-single-digit percentage compared to last year, an outlook that outpaces current analyst projections.

Gross margins are anticipated to remain in the 30–31% range.

Despite rising tariffs on imports, Wayfair has not seen meaningful price increases across its product catalog.

The company’s marketplace model — in which third-party vendors list and price products — fosters competition, helping to keep prices stable.

Wayfair’s algorithm continues to prioritize value for customers, taking into account factors like delivery speed, product quality, and price competitiveness.

The results indicate that long-term investments in logistics, customer experience, and product curation may be paying off, as the company manages to grow even in a challenging retail environment.

The post Wayfair share price surges 11% after it logs strongest quarter since pandemic boom appeared first on Invezz

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