Earnings

Wayfair shares surge after earnings top estimates and sales stay above pre-pandemic levels

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A Wayfair employee works at his desk at the Boston headquarters of Wayfair on July 31, 2018.
Suzanne Kreiter | Boston Globe | Getty Images

Furniture seller Wayfair reported second-quarter earnings on Thursday that topped analyst estimates, but its revenue fell short.

Shares of the company rose nearly 7% in premarket trading.

Here’s how the company did for its second quarter ended June 30 compared with what analysts surveyed by Refinitiv were anticipating:

  • Earnings per share: $1.89 vs. $1.15 expected
  • Revenue: $3.86 billion vs. $3.94 billion expected

During its second-quarter, the company reported a net income loss of $130.4 million, or $1.14 per share, compared to $273.9 million, or $2.54 per share, from a year earlier.

Excluding items, the company reported earnings of $1.89 per share, beating the $1.15 per share expected by analysts surveyed by Refinitiv.

The company reported a revenue of $3.86 billion, compared with expectations of $3.94 billion.

After four quarters of growth above 40%, its revenue was expected to drop 8.4% for the second period, according to StreetAccount.

Wayfair benefited from surging demand during the pandemic with more consumers spending money online during lockdowns. Shoppers were also focused on improving their homes as they spent more time working and relaxing there.

But Wayfair’s latest results show it was was able to hang on to some of these new shoppers. The company said active customers grew to 31.1 million, a nearly 20% year-over-year increase.

The stock is down more than 30% from its 52-week high of $369 which it reached on January 14.

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