Wayfair U.S. growth since 2020 reaches post-pandemic high

Wayfair reported its strongest U.S. growth since 2020 for the quarter ended June 30, giving investors a clearer sign of momentum in its largest market. In its Aug. 4 results, the online home-goods retailer said U.S. revenue rose 8.7% from a year earlier to $3.1 billion, which CEO Niraj Shah described as the company’s best U.S. revenue growth of the post-COVID period.

The regional result stood apart from the rest of the business. Total net revenue increased 7.5% to $3.519 billion, according to Wayfair. International revenue fell 1.3% to $394 million, so the U.S. accounted for the company’s consolidated sales increase.

How did Wayfair's second-quarter results break down?

Wayfair delivered 10.6 million orders during the quarter, up 6.0% year over year. Its active-customer count rose 3.3% to 21.7 million. The company defines an active customer as someone who has made at least one direct purchase from its sites in the prior 12 months.

Average order value, the average dollar amount per delivered order, rose to $332 from $328 a year earlier. Those companywide measures increased alongside revenue. Shah said order momentum helped fuel overall sales growth.

• U.S. net revenue: $3.1 billion, up $251 million, or 8.7%.
• Total net revenue: $3.519 billion, up $246 million, or 7.5%.
• International net revenue: $394 million, down $5 million, or 1.3%.
• Orders delivered: 10.6 million, up 6.0%.
• Active customers: 21.7 million, up 3.3%.

Wayfair posted a $1 million net loss under generally accepted accounting principles, compared with $15 million in net income a year earlier. At the same time, it reported $242 million in non-GAAP adjusted EBITDA, up from $205 million, and $301 million in non-GAAP free cash flow, up from $230 million. The company said the free-cash-flow figure was its highest since 2020.

Operating cash flow totaled $360 million. Wayfair ended the quarter with $1.1 billion in cash, cash equivalents and short-term investments, and reported total liquidity of $1.6 billion when revolving-credit-facility availability was included.

For context, 2020 was an unusually strong pandemic year for the retailer. Wayfair’s full-year U.S. revenue then rose 53.3% to $11.9 billion, according to its 2020 results. That annual comparison is not directly comparable with a single quarter, but it shows why management uses the period as a high benchmark.

Shah also said Wayfair’s specialty retail brands grew nearly 20% in the quarter and its luxury brand Perigold grew more than 35%. He said the company expects further acceleration as its initiatives develop, a management outlook rather than a reported result.

CNBC reported that Wayfair also exceeded analyst consensus estimates compiled by LSEG, with adjusted earnings per share of 95 cents versus 89 cents expected and revenue of $3.52 billion versus $3.47 billion expected.

This story draws on original reporting from CNBC.