Wayfair turned in an adjusted profit in the third quarter and beat or equaled Wall Street earnings and revenue expectations.
An analyst consensus estimate published by Yahoo Finance called for earnings of 13 cents per adjusted diluted share and revenues of $2.88 billion.
Net revenues came in at $2.88 billion versus $2.94 billion in the year-prior quarter, the company noted. Loss from operations was $74 million versus $152 million in the year-earlier period.
Net revenue in the United States was $2.51 billion versus $2.57 billion in the year-past quarter.
The uncertain economy and upcoming presidential election have created a tough environment for the home products sector, Niraj Shah, Wayfair CEO, co-founder and co-chairman, said in a conference call.
“Attention is focused away from the home right now, and when customers are in the market, it’s increasingly for lower investment, lower consideration purchases versus larger ticket items that represent our traditional area of strength,” he said. “We remain optimistic that pieces are coming together to support a category recovery in the quarters to come. Although it will take some time to play out, this improvement is poised to provide some relief in what has become a historic slowdown in the housing market.”
In announcing the financial results, Shah said, “Q3 marked another proofpoint of resilience for Wayfair with further market share capture in the face of sustained challenges in the category. Once again, we navigated a dynamic consumer environment while driving further discipline on costs to achieve a mid-single-digit adjusted EBITDA margin for the second quarter in a row. As I’ve mentioned before, our north star is driving adjusted EBITDA dollars in excess of equity-based compensation and capital expenditures, and we’re pleased to be making noteworthy improvements across each of these fronts. We remain laser-focused on delivering healthy profitability while setting ourselves up for success as the category rebounds. The core goal across each of our initiatives in 2024 is to foster customer loyalty and spur repeat business while driving economic value. We’re not just aiming for short-term gains, but building long-lasting relationships with our customers that will be accretive on both the top and bottom lines.”
