Wayfair posts first annual sales gain since 2020, outperforms overall furniture market

Core Insights - Wayfair's annual sales increased for the first time since 2020, with a revenue growth of 5.1% to $12.5 billion in 2025, following a decline of over 1% in 2024 [1] - The company exceeded Wall Street expectations for both revenue and earnings in its fiscal fourth quarter, reporting adjusted earnings per share of 85 cents compared to an expected 66 cents [2][9] - Wayfair experienced a loss of $116 million, or 89 cents per share, in Q4, an improvement from a loss of $128 million, or $1.02 per share, a year earlier [3] Revenue and Earnings Performance - In Q4, Wayfair's revenue rose to $3.34 billion, up approximately 7% from $3.12 billion a year earlier, marking the second consecutive quarter of revenue growth [4] - The adjusted EBITDA for the quarter was $224 million, surpassing expectations of $200 million [4][5] Customer Growth and Market Position - Wayfair achieved its third consecutive quarter of new customer growth, alongside healthy growth in repeat orders, despite a contracting category in the furniture industry [3] - Average order values increased to $301 from $290 in the previous year, with the number of orders delivered growing at a similar pace [7] Strategic Initiatives - The company has focused on enhancing customer experience through initiatives like a rewards program and product quality verification, which have contributed to market share gains [8] - Wayfair's positioning as a value-oriented retailer has resonated with consumers prioritizing lower prices amid a challenging economic environment for the furniture industry [6]