Wayfair (W) is making a major bet on artificial intelligence to transform how consumers shop for home goods. Yesterday, it announced its role as a foundational partner in the development of Google's (GOOG) (GOOGL) Universal Commerce Protocol. The open standard aims to create seamless interactions between AI agents and retail platforms, potentially reshaping the entire e-commerce landscape. The home furnishings retailer revealed that it co-developed this protocol with Google, which will soon power a new c ...

12 Jan 2026 12:20:10 ET │ 14 pages Vi e w p o i n t | North America Internet Pre-4Q25 Quiet Period Check-In Key Takeaways CITI'S TAKE We caught up with IR teams across most of our coverage prior to 4Q25 quiet periods and offer our thoughts. Please see below for detailed takeaways for WIX, GDDY, TTD, CRTO, IAC, ZETA, EBAY, W, ETSY, KSPI, DUOL, MTCH, and BMBL. Takeaways From Calls with IR We caught up with the IR teams across the majority of our coverage prior to 4Q25 quiet periods. Some key thoughts below. W ...

Summary of Wayfair (W) 2025 Conference Call Company Overview - **Company**: Wayfair (W) - **Date**: September 03, 2025 - **Context**: Discussion on tariffs, competitive positioning, revenue trends, and strategic initiatives Key Points Tariffs and Supply Chain - Recent tariff discussions have been ongoing, but impacts have been limited so far [4][5][6] - Wayfair's model benefits from a wide base of suppliers across various countries, allowing flexibility in response to tariffs and freight costs [6][8] - The company has managed to keep prices competitive despite tariff pressures, indicating effective supply chain management [10][11] Revenue Trends and Demand - No significant pull forward in demand has been observed, except for a brief spike in large appliances [15][16] - Revenue numbers showed an increase in Q2, with stable pricing on best-selling items [10][26] - Suppliers are managing costs effectively, absorbing some price increases without passing them on to consumers [20][21][23] Competitive Positioning - Wayfair has maintained and grown market share since its IPO in 2014, with a significant increase in revenue from $1 billion to $12 billion pre-COVID [28][29] - The company attributes its market share growth to a combination of price, selection, availability, and delivery speed [30][34] - Competitors like Amazon and HomeGoods have also gained share, while many smaller players have lost ground [36][38] Brick-and-Mortar Strategy - Wayfair is expanding its physical store presence, with plans for new locations in Chicago, Atlanta, and New York [44][50] - The Chicago store has shown positive performance, contributing to increased sales in the region [49][50] CastleGate Logistics - CastleGate has seen a 40% year-over-year increase in usage, with penetration in fulfillment centers reaching 25% [53][54] - The logistics network is optimized for large, bulky items, providing cost advantages and improving delivery speed [55][56] Technology and GenAI Initiatives - Wayfair is leveraging GenAI to enhance customer experience, improve ad efficacy, and streamline operations [72][74] - The company is investing in technology to maintain a competitive edge and improve supplier interactions [75][76] Advertising and Marketing Strategy - Advertising expenses have been managed effectively, with a focus on mid-funnel marketing strategies yielding positive results [90][92] - The company aims to maintain a contribution margin of around 15% while optimizing gross margins [92][96] Financial Outlook - Gross margins are expected to remain in the 30-31% range, with potential for improvement through various levers [96][97] - The company is focused on achieving a 10% adjusted EBITDA margin through careful management of costs and revenue growth [98] Additional Insights - The competitive landscape remains fragmented, with many players losing market share, which presents opportunities for Wayfair to capture more customers [41][42] - The company is optimistic about future growth as it continues to enhance its technology and logistics capabilities [43][44]