Wayfair posts strongest U.S. growth since 2020 as free cash flow hits $301 million

Wayfair reported second-quarter results ahead of Wall Street expectations, with net revenue of $3.52 billion, adjusted earnings of $0.95 per share and adjusted EBITDA of $242 million, as U.S. sales rose 8.7% to $3.12 billion and free cash flow reached $301 million. The company said it is gaining share despite a frozen housing market, helped by pricing, merchandising and delivery improvements as well as newer initiatives including Wayfair Rewards and Wayfair Verified. Domestic orders delivered rose 6% to 10.6 million, active customers increased 3.3% to 21.7 million, repeat customers accounted for 80.2% of orders, and revenue per active customer grew 4.2% to $596. Perigold, its luxury banner, grew more than 35% and drew in higher-spending shoppers, with about 40% of its customers new to the Wayfair ecosystem. International revenue from Canada and the U.K. fell 1.3% to $394 million, and the company reported a net loss of $1 million versus net income of $15 million a year earlier, even as operating income rose to $104 million from $17 million. Wayfair projected third-quarter revenue growth in the mid-single digits and adjusted EBITDA margins of 6% to 7%, saying the outlook is driven by company initiatives rather than any expected macroeconomic recovery. Shares climbed nearly 30% to $116.08, while several analysts raised price targets after the report.