Wayfair (NYSE:W) reported better-than-expected results for its second quarter, sending its shares almost 12% higher on Thursday.
The company reported a surprise profit per share of 21 cents as analysts were looking for a loss per share of 76 cents. Revenue came in at $3.2 billion, easily ahead of the expected $3.08B.
"Last year, we laid out a plan to strengthen our business that included a path to sustainable and growing profitability with several key milestones. For the past few quarters, you've seen us execute against that plan - to lower our costs, focus on the basics and earn more customer and supplier loyalty. And you've seen the tangible impact of this plan as our performance has continued to improve. I'm pleased to share today that we've passed one of our key milestones and we are reporting positive adjusted EBITDA and positive free cash flow," said Niraj Shah CEO, co-founder and co-chairman, Wayfair.
Overall, sales fell 3.4% as international revenue dropped 21% year-over-year to $386M.
Wayfair reported 22M active customers, with orders delivered flat YoY at 10M.
Evercore ISI analysts said the results were “better than elevated expectations.”
RBC analysts added:
“This is a solid print that warrants a positive stock reaction. We still remain wary of the sustainability of current top-line trends given our read-through work continues to point to a deteriorating macro environment, but regardless we give mgmt credit for improved cost discipline.”