Online home goods company. fair way reported a rise in third-quarter revenue on Tuesday as it beat Wall Street estimates on the results.
The company said total net revenue increased 8.1% year over year.
Here's how the company performed in its third quarter, compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: 70 cents adjusted versus 43 cents expected
- Revenue: $3.12 billion vs. $3.02 billion expected
Wayfair shares rose 10% in premarket trading.
For the period ended Sept. 30, Wayfair reported a net loss of $99 million, or 76 cents per share, compared with a loss of $74 million, or 60 cents per share, a year earlier.
The company's U.S. revenue increased 8.6% year over year to $2.7 billion, while international revenue increased 4.6% year over year to $389 million. Wayfair said its total net revenue, excluding its exit from Germany, rose 9% year over year.
Chief Financial Officer Kate Gulliver told CNBC that the company does not attribute the growth to any macro-related factors such as tariffs or interest rates.
“We think it's really being driven by our stock gain, and we think it's really coming from a confluence of factors and initiatives that we started over a year ago that are now starting to bear fruit,” Gulliver said.
Those initiatives include what Gulliver calls the company's “core recipe” (price, product availability and speed), as well as the growth of its loyalty program, site improvement and physical retail.
Although the tariff policy has created uncertainty for the company, it said it has been able to lean on the strength of its model: operating as a marketplace on the back-end and as a retailer on the front-end.
CEO Niraj Shah added in the earnings release that the company's orders delivered during the quarter grew 5% year-over-year.
“Our adjusted EBITDA margin of 6.7% marks the highest level achieved in Wayfair's history outside of the pandemic period,” Shah said in the statement. “As we have promised, a substantial flow of profitability is driven by strong contribution margin and fixed cost discipline as our business has returned to growth.”
Wayfair said its active customers totaled 21.2 million at the end of the quarter, a decline of 2.3% year over year.
