Wayfair’s free cash flow came in at $301 million, compared to $230 million last year, which the company claims was its strongest since 2020.

  • For Q2, revenue came in at $3.5 billion, and adjusted EPS were $0.95.
  • Orders delivered during Q2 were 10.6 million, up 6%.
  • At the end of the quarter, total active customers rose 3.3% to 21.7 million.

Shares of online furniture retailer Wayfair (W) surged on Tuesday after the company delivered a strong top- and bottom-line beat for the second quarter.

At the time of writing, W stock was up more than 28% and on track for its biggest percentage gain in over six years.

Q2 Results At A Glance

For the second quarter (Q2), revenue came in at $3.5 billion, ahead of the Fiscal AI estimate of $3.47 billion. The company's adjusted earnings per share (EPS) were $0.95, exceeding the $0.92-per-share estimate.

“Revenue growth in the US was the best we've seen in the entire post-COVID period, with nearly 9% year-over-year revenue growth, continuing the high single-digit share spread we've held since last fall," said CEO Niraj Shah.

Free cash flow came in at $301 million, compared to $230 million last year, which the company claims was its strongest since 2020. Wayfair ended the quarter with cash, cash equivalents, and short-term investments of $1.1 billion.

Order Momentum Steady

Orders delivered during the second quarter (Q2) were 10.6 million, up 6% from last year. Of these, repeat customers placed 80.2% of total orders, or 8.5 million.

Meanwhile, average order value was $332, up from $328, and mobile app orders accounted for 64.1% of total orders, up from 62.9%. At the end of the quarter, total active customers rose 3.3% to 21.7 million.

"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%,” Shah added.

What Do Retail Traders Think About W?

On Stocktwits, retail sentiment about W turned ‘extremely bullish’ from ‘bullish’ over the last 24 hours.

One user on the platform cheered the results.

View this Stocktwits post

W stock is up more than 13% so far this year and has gained 55% over the past 12 months, outperforming the S&P 500.

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