Wayfair stock jumps more than 15% as retailer posts strongest U.S. growth since 2020
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- Wayfair stock jumped more than 15% after its U.S. segment posted 8.7% sales growth to $3.1 billion — the region's strongest expansion since 2020.
- Wayfair posted $301 million in quarterly free cash flow, its strongest since 2020, alongside adjusted EBITDA of $242 million and beats on both adjusted EPS (95¢ vs. 89¢ expected) and revenue ($3.52B vs. $3.47B).
- Wayfair delivered 10.6 million orders to 21.7 million active customers — both above StreetAccount estimates — though average order value slipped to $332, below the $337.57 expected.
- Perigold, Wayfair's luxury brand, grew more than 35% and specialty retail brands grew nearly 20% in Q2, per CEO Niraj Shah, who cited "outsized growth" from the higher-end portfolio.
- CFO Kate Gulliver said the growth comes from taking market share from brick-and-mortar competitors and attracting value-seeking shoppers, while the housing market remains "stalled."
Why it matters: Wayfair is siphoning market share from brick-and-mortar retailers despite tariffs and a stalled housing market — unusual strength that triggered a 15% stock rally. The $301 million free cash flow marks the strongest quarterly cash generation since its 2020 pandemic boom, validating its online-first model in a value-driven consumer environment.
