Wayfair Inc. (NYSE:W) shares are trading lower on Thursday, even as solid growth and improving profitability in the first quarter couldn’t shake concerns about demand volatility in the home furnishings market.
• Wayfair stock is feeling bearish pressure. Why is W stock falling?
What Happened
The company reported first-quarter adjusted earnings per share of 26 cents, in line with the analyst consensus estimate. Quarterly sales of $2.90 billion (+7.4% year over year) outpaced the Street view of $2.89 billion.
U.S. net revenue of $2.6 billion increased 7.5% year over year, while International net revenue of $319 million increased 6% year over year.
Adjusted Gross Profit in the quarter under review totalled $881 million, compared with $839 million a year ago.
Active customers totalled 21.4 million as of March 31, 2026, an increase of 1.4% year over year. Orders delivered in the first quarter of 2026 were 9.4 million, an increase of 3.3% year over year.
Wayfair said the average order value was $312 in the first quarter of 2026, compared to $301 in the year-ago period.
Orders delivered in the first quarter of 2026 were 9.4 million, an increase of 3.3% year over year
In the quarter under review, adjusted EBITDA increased to $151 million, compared with $106 million a year ago.
“Our 5.2% Adjusted EBITDA margin in the first quarter is the best Q1 result we’ve delivered in five years and approaches what we reported in the first quarter of 2021,” said CEO Niraj Shah.
Cash and equivalents as of quarter end totalled $1.004 billion.
“While the home furnishings category experienced a choppy start to the year, we outperformed the market by a high single-digit spread in the first quarter, based on our estimates,” the CEO added.
W Price Action: Wayfair shares are trading lower by 10.99% to $65.22 at publication on Thursday.
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