Wayfair (W) stock is up more than 20% at market open after the online furniture retailer posted third quarter results that beat estimates. Year to date, Wayfair stock has soared more than 130%.
Adjusted earnings came in at $0.70, higher than Wall Street’s forecast of $0.44. Revenue grew 8.1% year over year to $3.12 billion, more than the $3.02 billion expected, per Bloomberg consensus data. Without the exit from Germany, revenue jumped 9%.
“Revenue growth was driven by order momentum,” Wayfair CEO Niraj Shah told investors on the company’s earnings call. “We saw orders grow by over 5% year over year in the quarter, including new orders growing mid-single digits for two quarters in a row.”
Listen to Wayfair’s earnings call or read the transcript here.
One of the key questions heading into the report was whether Wayfair saw pull-forward trends by consumers ahead of President Trump’s latest tariffs on furniture, including new 25% tariffs on kitchen cabinets, upholstered furniture, and lumber after the third quarter.
Shah said, “The only instances of pull forward we’ve identified came from a very short-lived increase in large appliances demand back in the early spring and a similarly short-lived increase in vanities late in the third quarter.”
He said “neither” was exceptionally meaningful, adding that consumer behavior didn’t shift “based on tariffs.”
Despite a projection that Americans will spend less this holiday season, with PwC expecting a 5% decline in the average holiday spend, Shah believes holiday shopping “is probably going to be similar to past years.”
For the fourth quarter, the company expects net revenue to be up mid-single digits year over year.