Wayfair Reports Unexpected Profit, Shares Surge in Early Trading

Boston, MA — Wayfair Inc. surprised investors with a profit in its latest earnings report, causing shares to rise by 7% in premarket trading on Wednesday. The online home goods retailer reported adjusted earnings per share of $0.10 for the first quarter, beating FactSet estimates that had predicted a loss of $0.21 per share.

Revenue matched expectations at $2.7 billion, remaining essentially flat compared to the same quarter last year. Despite a decrease in purchase frequency, the company noted that average order values increased from $285 to $301, indicating that while shoppers may be buying less often, they are spending more.

“Despite persistent category volatility, which marked a fourth consecutive year beginning with contraction, we were able to once again outperform our peers and take healthy market share while driving meaningful improvements in profitability,” said Niraj Shah, CEO and co-founder of Wayfair, in a statement.

However, Wayfair shares are still down approximately 40% over the past year, struggling due to a sluggish home goods market. Analysts warn that the broader economic conditions remain challenging.

As the retail environment fluctuates, investors will be keeping a close eye on Wayfair’s ability to maintain its profitability and navigate the competitive landscape in the home goods sector.