Please ensure Javascript is enabled for purposes of website accessibility

Wayfair Says Sales Trends Spiked in Late March

By Demitri Kalogeropoulos - Updated Apr 6, 2020 at 11:24AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company decided to take on more debt despite a volatile stock market.

Wayfair (W 2.68%) 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.

A modern furnshined living room.

Image source: Getty Images.

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. 

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Wayfair. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wayfair Inc. Stock Quote
Wayfair Inc.
$71.34 (2.68%) $1.86

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.