What happened
Shares of Wayfair (W +0.40%) have jumped today, up by 8% as of 1:10 p.m. EST, after the company announced third-quarter financial results this morning. The stock was up as much as 18% in pre-market trading.
So what
Revenue in the third quarter soared 67% to $3.8 billion, ahead of the consensus estimate of $3.66 billion in sales. That resulted in adjusted earnings per share of $2.30, which blew away Wall Street's expectation of $0.80 per share in adjusted profits. The e-commerce technology company, which specializes in home furnishings, now has 28.8 million active customers and the average order value was $243 in the third quarter.
Image source: Getty Images.
"In the midst of continued uncertainty about the economy and the pandemic, Wayfair delivered another quarter of strong operating and financial results in Q3," CEO Niraj Shah said in a statement. "Category momentum is vibrant, demand is moving online at an accelerated pace, and we expect the home to be even more important than usual when it comes to celebrating the holidays this year."
Now what
Wayfair has benefited from the broad shift to e-commerce that has been spurred by the COVID-19 pandemic, which has also generally boosted demand for home furnishings as people spend more time at home. The company says that it has been able to significantly grow its market share as spending shifts to online platforms.
Management did not provide guidance but Shah added that he is "confident that there is a long runway for continued strong profitable growth ahead for Wayfair -- well beyond when the current circumstances have passed."
