Latest news with #NirajShah
Yahoo
2 days ago
- Business
- Yahoo
Wayfair posts first quarterly profit in 4 years
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: Wayfair on Monday swung into the black, posting its first quarterly profit since the second quarter of 2021. The online home furnishings company reported a Q2 net income of $15 million, up from a loss of $42 million last year, and an operating income of $17 million, from a loss of $35 million a year ago. The retailer's net revenue grew 5% year over year to $3.3 billion. Excluding the impact from its exit from the German market, Wayfair's net revenue increased 6%. U.S. revenues grew 5.3%, while international revenues were up 3.1%. The company's active customer base, however, declined 4.5% from the year-ago period. Orders per customer grew slightly, from 1.85 to 1.86. Dive Insight: CEO Niraj Shah declared Wayfair's second quarter 'a resounding success,' noting that the period 'was a nice proof point of the journey that we've been on and even more exciting of what is to come.' The home retailer turned a quarterly profit for the first time in four years, even as the broader home market remains challenged. Jefferies analysts led by Jonathan Matuszewski highlighted Wayfair's potential 'that stronger sales could unlock substantially-higher margins.' 'Imagine what's ahead when housing cooperates,' Matuszewski said in a Monday note. While retailers in the home sector have experienced lower demand in recent years, some retailers saw a lift more recently as consumers pulled purchases forward as fears of tariffs — and potential price increases — loomed. But Wayfair hasn't experienced noticeable changes in its customers' buying habits, executives said Monday, and Shah touted the company's marketplace model, which has allowed its prices to remain largely unchanged. 'The marketplace forces of our inventory-light model give us unmatched flexibility. … The benefits of this model continue to prove self-evident despite the various ebbs and flows of the broad business environment,' he said, adding that prices across the items consumers are currently purchasing are relatively consistent with those from the previous quarter. 'The momentum feels to us, driven by the structural business initiatives, not by any one-time events, any unique pull forward, anything like that. And that momentum is continuing,' CFO Kate Gulliver said on Monday's call with analysts. Wayfair in recent months has launched a number of initiatives, including its Wayfair Verified tool and paid loyalty program. The company has also been steadily building out its brick-and-mortar footprint across its various banners. Wayfair's first large-format store — which opened just over a year ago in Wilmette, Illinois, outside of Chicago — has helped drive purchases in less-frequented categories for the retailer. The company said it has seen a 50% increase in lower-ticket items like kitchen accessories purchases and a more than 35% increase in home improvement purchases, including bathroom renovation items and kitchen cabinets. Wayfair has plans to expand its large-format concept to Denver, Atlanta and Yonkers, New York. Recommended Reading Wayfair narrows losses even as revenue falls 2% in Q3 Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Wayfair struggles to reverse concerning customer behavior
Wayfair struggles to reverse concerning customer behavior originally appeared on TheStreet. Wayfair () s continuing to spot a concerning shift in customer behavior, despite recently generating higher profits, and the company hopes a new tactic will reverse the trend. In Wayfair's second-quarter earnings report for 2025, it revealed that it generated $3.3 billion in total net revenue during the quarter, which is 5% higher than what it earned during the same quarter last year. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The average order value during the quarter was $328, an increase from $313 in the second quarter of the company's total number of active customers decreased by 4.5% year-over-year. Also, only 80.7% of repeat customers placed orders during the second quarter, down from the 81.7% that placed orders during the same time period last year. Wayfair CEO sounds alarm on a major problem impacting sales During an earnings call on Aug. 4, Wayfair CEO Niraj Shah said demand for home goods has improved but remains weak, despite the company's prices remaining 'relatively consistent' with the previous quarter. 'If you look at the demand level in the category, you've got three years where it went down by kind of significant amount per year, and now you have it kind of flat to down,' said Shah. '... So that's not a strong environment.' Shah confirmed that low housing turnover rates and existing home sales in the U.S. are among the main factors contributing to weak demand.U.S. home prices have increased over the past few years, eating away at housing affordability. In the second quarter of 2025, the average home sales price reached $512,800, which is 38% higher than the average in the second quarter of 2020. In response to rising home prices, consumers have been avoiding purchasing new homes, which has impacted the home goods category. According to a weekly survey from the Mortgage Bankers Association, mortgage applications decreased by 3.9% from the previous week, while mortgage rates remained at almost 7%. Wayfair has a plan to win back customers To help shore up consumer demand, Wayfair is focused on improving the customer experience to keep shoppers away from rivals by further investing in technology and new programs. Specifically, it will focus on rolling out new artificial intelligence-powered features to make shopping more seamless for customers and inventory management easier for suppliers. Wayfair is also relying on its new paid loyalty program, Wayfair Rewards, which launched last year, to boost orders and traffic on its website. More Retail: Target has another big problem amid alarming customer behavior Dollar General announces big store change to win back customers Amazon pulls the plug on a free service for customers 'The initial excitement we saw for Wayfair Rewards at the time of launch continues to gain traction with member growth and customer lifetime value curves exceeding our initial expectations,' said Shah during the call. Shah also said that Wayfair expects to see minimal price increases on its platform, despite the growing threat of tariffs (taxes companies pay to import goods from overseas), which may help attract and retain price-conscious customers. 'We have over 20,000 suppliers on our platform,' said Shah. 'And they are, to some degree, in competition with each other. So they know 'Hey, if I take an item, it's doing well, I raise its price, it could kill that item. I don't wanna do that.' So suppliers are pretty keen to figure out how to maintain those prices.' Consumers nationwide have been pulling back their spending in response to President Donald Trump's tariffs on multiple countries, which are expected to result in higher prices for everyday goods. According to a recent survey from market research company Numerator, 87% of consumers are worried about tariffs impacting their finances. Also, 80% of consumers are adjusting their finances or shopping habits in response to tariffs, including delaying nonessential or expensive purchases, buying fewer imported goods, searching for sales and coupons, and switching to shopping at lower-priced retailers and discount struggles to reverse concerning customer behavior first appeared on TheStreet on Aug 6, 2025 This story was originally reported by TheStreet on Aug 6, 2025, where it first appeared. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Wayfair Hits (W) New High as Strong Performance Bucks Tariff Threats
We recently published . Wayfair Inc. (NYSE:W) is one of the companies that stood stronger last week. Wayfair saw its share prices rally to a new all-time high on Monday as investors cheered its strong earnings performance in the second quarter of the year amid the threats of tariffs. During the session, Wayfair Inc. (NYSE:W) touched a new 52-week high of $73.79 before paring gains to end the day just up by 12.66 percent at $73.48 apiece. On the same day, the company announced swinging to a net income of $15 million in the second quarter of the year from a $42 million net loss in the same period last year. Total net revenues increased by 5 percent to $3.273 billion from $3.117 billion. Excluding the impact of its exit from the German market, net revenues grew 6 percent year-on-year. The first half, however, saw the company at a net loss of $98 million, albeit lower by 66 percent than the $290 million net loss in the same period last year. Net revenues inched up by 2.68 percent to $6 billion from $5.85 billion year-on-year. Copyright: worldwidestock / 123RF Stock Photo 'The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. As we have discussed over the last few years, we can and will grow profitability, while taking a significant share in the market,' said Wayfair Inc. (NYSE:W) CEO Niraj Shah. While we acknowledge the potential of W as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Wayfair reports revenue growth of 5% in Q2 2025
Digital-first home goods retailer Wayfair reported total net revenue of $3.3bn, a 5% increase year-on-year (YoY) in the second quarter (Q2) of the fiscal year 2025 (FY25). Revenue growth, excluding the impact from exiting the German market, was 6% YoY. The US market contributed significantly to the growth, with revenue up 5.3% to $2.9bn. International revenue also saw an uptick of 3.1% to $399m, with constant currency growth at 2.1%. Gross profit reached $984m, representing 30.1% of total net revenue. Net income stood at $15m, with non-generally accepted accounting principles (GAAP) adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) at $205m. The company's diluted earnings per share were $0.11. Operating activities generated a net cash of $273m, and non-GAAP free cash flow was $230m. Wayfair ended the quarter with $1.4bn in cash and short-term investments, with total liquidity reaching $1.8bn. Wayfair CEO, co-founder and co-chairman Niraj Shah stated: "The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. As we have discussed over the last few years, we can and will grow profitably, while taking significant share in the market. 'Year-on-year revenue growth of 6% - excluding the impact of Germany - marks the highest growth rate we have seen since early 2021. Our over 6% adjusted EBITDA margin demonstrates the significant leverage in our model, and as previewed in our investor day two years ago, is just the beginning of what we believe we can achieve over time." Despite these gains, active customer count decreased 4.5% YoY to 21 million. However, revenue per active customer increased by 5.9% to $572. Orders per customer slightly rose to 1.86, maintaining orders delivered at 10 million. Repeat customers accounted for 80.7% of orders - a slight decrease from the previous year's 81.7%. The average order value increased to $328, up from $313 in the previous year, with orders placed via a mobile device constituting 62.9% of total orders delivered. Shah added: "Every dollar we spend solves for the best outcome across our customers, suppliers and Wayfair. Two decades of this approach has taught us that building great things takes time, but when done with thought, care and prudence, can have a payoff well worth the wait. 'You're seeing some of that this quarter - with years of work we've done leading to some of the best growth and profitability flow through our business has seen since the pandemic. We couldn't be more excited for what lies ahead in 2025 and beyond." Wayfair's portfolio includes a variety of brands catering to different styles and preferences, such as AllModern, Birch Lane, Joss & Main, Perigold and Wayfair Professional. In June 2025, Wayfair's Perigold opened its first bricks-and-mortar store in Houston, in the US state of Texas, extending its offerings beyond online. "Wayfair reports revenue growth of 5% in Q2 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Wayfair Soars As Shoppers Spend Big And Profits Grow
Wayfair (NYSE:W) shares are trading higher on Monday after reporting second-quarter results. The e-commerce company reported adjusted earnings per share of 87 cents, beating the street view of 32 cents. Quarterly sales of $3.27 billion (up by 5% year-over-year or Y/Y) outpaced the analyst consensus estimate of $3.12 billion. Total net revenue, excluding the impact of our exit from the German market, grew 6.0% Y/Y.U.S. net revenue rose 5.3% Y/Y to $2.9 billion. International net revenue rose 3.1% Y/Y to $399 million. On a constant currency basis, international revenue grew 2.1% Y/Y. Gross profit in the quarter under review increased to $984 million, higher than $941 million in the year-ago period. View more earnings on W As of June 30, active customers totaled 21.0 million, a decrease of 4.5% Y/Y. Orders delivered in the quarter were 10.0 million, flat Y/Y. Average order value was $328 in the quarter, compared to $313 Y/Y. Adjusted EBITDA in the quarter under review increased to $205 million, higher than $163 million a year ago. Adjusted EBITDA Margin expanded to 6.3% from 5.2% a year ago. Cash, cash equivalents, and short-term investments totaled $1.4 billion, and total liquidity was $1.8 billion, including availability under the company's revolving credit facility. Wayfair CEO Niraj Shah reported that the second quarter delivered strong results, accelerating sales, market share gains, and improved profitability. He highlighted that, excluding Germany, revenue grew 6% Y/Y, Wayfair's fastest pace since early 2021, while adjusted EBITDA margin exceeded 6%, reflecting significant operating leverage and progress toward long-term financial goals outlined during the company's investor day. He expressed optimism for continued momentum through 2025 and beyond. Price Action: Wayfair shares are trading higher by 11.9% to $73.00 premarket at last check Monday. Image via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? WAYFAIR (W): Free Stock Analysis Report This article Wayfair Soars As Shoppers Spend Big And Profits Grow originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
