Wayfair Stock Is Soaring - Here's What's Driving The Move

Wayfair Inc W reported a second-quarter FY23 sales decline of 3.4% year-on-year to $3.17 billion, beating the consensus of $3.10 billion.

International net revenue fell 20.9% to $386 million, while U.S. revenue declined 0.4% to $2.8 billion.

The number of active customers reached 21.8 million as of June 30, 2023, a 7.6% decrease Y/Y. The average order value was $307 vs. $330 a year ago.

In Q2, 61.6% of total orders delivered were placed through a mobile device, versus 59.0% last year.

Adjusted EPS of $0.21 beat the analyst consensus of $(0.67). Gross margin expanded 378 basis points to 31.1%.

Loss from operations for the quarter was $(142) million versus a loss of $(372) million last year.

The company held over $1.3 billion in cash and equivalents. Net cash used in operating activities for the quarter was $217 million, and non-GAAP free cash flow was $128 million.

"For the past few quarters, you've seen us execute against that plan - to lower our costs, focus on the basics and earn more customer and supplier loyalty. And you've seen the tangible impact of this plan as our performance has continued to improve. I'm pleased to share today that we've passed one of our key milestones and we are reporting positive adjusted EBITDA and positive free cash flow," said Niraj Shah CEO, co-founder and co-chairman, Wayfair.

Price Action: W shares are trading higher by 8.84% at $79.33 premarket on the last check Thursday.

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