Wayfair Growth Hits Post-Pandemic High on US Market Share Gains

Wayfair Inc.’s revenue grew at the fastest pace since the pandemic-driven e-commerce boom, as the home furnishings retailer continued to boost its overall order numbers against a challenging consumer backdrop.

Net revenue for the third quarter grew 9.7% to $3.42 billion, the fastest rate since early 2021 and surpassing the $3.38 billion analyst estimate. Much of that growth was driven by Wayfair’s primary US market, where revenue jumped 11% to $3 billion.

“As you see our order volume growing, what we’re trying to drive is overall engagement with Wayfair and engagement with the brand,” Chief Financial Officer Kate Gulliver said in an interview.

Wayfair has been trying to increase market share by drawing in new customers to its core site and its newer brick-and-mortar stores, while appealing to higher-income shoppers and interior designers through luxury brands like its Perigold line. It’s also been trying to boost how frequently customers shop with a loyalty program that offers benefits like free shipping and drive users to its app with personalized offers.

Shares of the Boston-based company were up 11% so far this year as of Tuesday’s close.

Active customers totaled 22.2 million as of the end of the third quarter, a 4.7% increase from a year earlier. That was ahead of Wall Street expectations of 21.9 million.

“At the start of this year, we told you we expected to take share in the US at a pace we had not seen in several years,” Chief Executive Officer Niraj Shah said in the statement. “We’ve done exactly that.”

While Wayfair has continued to draw in shoppers, there are some signs that shoppers may be spending more cautiously as they contend with higher prices for staples including groceries and gas. Wayfair’s average order value for the quarter was $311, less than the $324.43 analysts had projected and the $317 Wayfair saw a year earlier.

“We’re able to meet the customer all the way from the opening price point up to luxury,” Gulliver said. “Some customers even within their own home will shop across those platforms.”

Wayfair has worked to boost its bottom line by keeping costs like advertising relatively low. Wayfair also doesn’t purchase inventory directly from its suppliers, instead serving as a marketplace platform, allowing it to sidestep fuel and tariff costs that have hurt other retailers and brands in recent months.

The company can leverage its logistics infrastructure, marketing capabilities, supplier knowledge and supplier base on one platform to offer products across the spectrum from luxury to “that opening price point, dorm room moment,” Gulliver said.