Wayfair (NYSE:W) issued a sales update on Monday that contained mostly good news for investors. The e-commerce specialist noted a sharp demand increase as consumers hunkered down in their homes in late March, even as it prepared for a potentially tough economic time ahead.
Wayfair, which specializes in selling home furnishings online, said sales growth more than doubled from its prior rate in late March and into April. That description suggests revenue rose nearly 40% in recent weeks. "Wayfair's model is uniquely suited to serving customers' very real needs at this challenging time," CEO Niraj Shah said in a press release.
The company isn't immune to the effects of COVID-19 containment measures, though, so management has taken extra steps to shore up its balance sheet, including issuing $535 million of new debt.
"The additional capital we are raising," Shah explained, "though not strictly necessary, should only enhance our ability to successfully navigate through any market backdrop."
Wayfair is set to announce its first-quarter results on May 5, but as of today management believes it will meet or exceed its official outlook that calls for sales gains of between 15% and 17% and adjusted losses that equate to about 8% of revenue.