Wayfair Shares Surge 16% Following Stronger-Than-Expected Q3 Results

BOSTON - Wayfair Inc. (NYSE:W) shares rose 16% in early trading on Wednesday after the online home goods retailer reported better-than-expected third-quarter results. The company surpassed both revenue and profit forecasts.

It reported an adjusted profit of $0.22 per share, exceeding analysts' expectations of $0.13. Revenue came in at $2.9 billion, slightly above Wall Street's estimate of $2.87 billion, despite a 2% year-over-year decline.

Wayfair's CEO, Niraj Shah, emphasized the company's resilience, stating, "The third quarter was yet another testament to Wayfair's resilience with market share gains despite ongoing challenges in the category."

Demonstrating an increase in profitability amidst continuing challenges in the home goods sector, the company achieved a mid-single-digit adjusted EBITDA margin for the second consecutive quarter. Adjusted EBITDA rose to $119 million in the third quarter, up from $100 million in the same period last year.

The number of active customers decreased by 2.7% year-over-year to 21.7 million, while the average order value increased from $297 to $310 compared to the same period last year. The number of delivered orders reflected a challenging consumer environment, declining 6.1% to 9.3 million.