Wayfair falls despite beat on Q2 revenue and earnings

Investing.com -- Wayfair shares slipped about 3% in premarket trading Tuesday despite the online furniture retailer posting second-quarter results ahead of expectations on both revenue and earnings.

The company reported second-quarter earnings per share of $0.95, beating the analyst estimate of $0.87. Revenue rose 7.5% year-over-year to $3.52 billion, topping the $3.45 billion consensus estimate.

U.S. net revenue rose 8.7% year-over-year to $3.1 billion, an increase of $251 million, while international net revenue fell 1.3% to $394 million, down $5 million.

"Q2 marked another strong quarter of share capture and top line momentum, with 7.5% net revenue growth fueled by momentum in orders, which were up by 6% for the period. We saw the best sequential growth we’ve seen in a Q2 since the second quarter of 2020," said Wayfair co-founder and CEO Niraj Shah.

"We saw noteworthy outperformance from our specialty retail brands, which grew by nearly 20% in the second quarter, and Perigold, which grew by more than 35%," he added.

Active customers totaled 21.7 million as of June 30, up 3.3% year-over-year. Trailing-twelve-month net revenue per active customer rose 4.2% to $596. Orders per customer, measured as trailing-twelve-month orders divided by active customers, ticked up to 1.89 from 1.86 a year earlier.

Orders delivered in the quarter rose 6.0% year-over-year to 10.6 million, while average order value increased to $332 from $328 a year earlier.

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