Wayfair (W) shares surged Tuesday after the company reported better-than-expected second-quarter results, driven by its strongest US revenue growth in the post-COVID period.
The online furniture and home goods retailer's June quarter consolidated revenue grew 7.5% year over year to $3.52 billion, ahead of a FactSet-polled consensus of $3.47 billion. Adjusted earnings rose to $0.95 a share from $0.87, surpassing Wall Street's $0.90 views.
US revenue increased to $3.13 billion from $2.87 billion, while international sales fell to $394 million from $399 million.
"Our US segment accelerated to nearly 9% year-over-year revenue growth, continuing the high-single-digit share spread we held since last fall," Chief Executive Niraj Shah said on an earnings conference call, according to a FactSet transcript. "In fact, revenue growth in the US was the best we've seen in the entire post-COVID period."
Wayfair shares were up 30% in afternoon trade. The stock has jumped nearly 16% so far in 2026.
"This was another impressive quarter of share momentum from the US, buoyed by some macro improvement," Chief Financial Officer Kate Gulliver said on the call. "However, that macro improvement did not extend to our end markets in Canada or the UK, which both saw continued pressure on consumer sentiment and discretionary spending."
Orders increased 6% year over year in the quarter. "We saw new order growth in (the second quarter) accelerate for the fourth consecutive quarter and reach a post-COVID high," Gulliver told analysts. For the ongoing quarter, Wayfair projects a high-single-digit top-line growth, according to Gulliver.
UBS Securities expected the company's second-quarter sales to grow 5.8% and said the results would likely "keep the share-gainer narrative alive" for the retailer.
"Few discretionary retailers are generating this type of growth profile in the current macro backdrop," the brokerage said in a July 29 note to clients. "We think a key tenet of the bull case is that (Wayfair's) top-line is showing strength at a time when others in the industry are languishing."
Last week, e-commerce giant Amazon.com (AMZN) reported second-quarter results that topped the Street's views amid cloud-computing business strength. E-commerce platforms EBay (EBAY) and Etsy (ETSY) are scheduled to report results Wednesday.
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